Fundamentals of Planning

FOM
 Planning
• Defining the organization’s objectives or goals
• Establishing an overall strategy for achieving those
goals
• Developing a comprehensive hierarchy of plans to
integrate and coordinate activities

Planning is concerned with ends (what is to be done) as well

as with means (how it is to be done).
 Definition
• “Planning is a concept of executive function that
embodies the skills of anticipating, influencing and
controlling the nature and direction of change.”-
Dalton E.Mcfarland’s
• “Planning involves selecting mission and objectives
and the actions to achieve them; it requires decision-
making that is , choosing from alternative future
course of action.”- Heinz Weihrich and Harold Koontz
 Nature of Planning
• Planning is goal oriented
• Planning is an Intellectual or Rational Process
• Planning is a primary function
• Planning is All- pervasive
• Planning is Forward –Looking
• Planning is a perpetual process
• Planning is an integrated process
• Planning involves choice
 Role & Significance of Planning
• Focuses attention on Objectives
• Offsets Uncertainty and Risk
• Provides Sense of Direction
• Provides Guidelines for Decision – making
• Increases Organizational Effectiveness
• Provides efficiency in operations
• Ensures better coordination
• Facilitates Control
• Encourages Innovation and creativity
• Facilitates Delegation
 Types of Plans
• Plans can be classified on the basis of the
organization level, the frequency of use and their
time frame.
• Plans based on organizational level
- Strategic
- Tactical or operational
• Plans based on frequency of use
- Single – use plans
- Programs
 Types of Plans
- Budgets
- Projects
- Standing plans
- Policies
- Procedures
- Rules
• Plans based on Time Frame
- Long term plans
- Intermediate - term plans
- Short – term plans
 Steps in Planning Process
• Analyzing Opportunities
• Establishing objectives
• Determining Planning Premises
• Identifying Alternatives
• Evaluation
• Selection
• Implementation
• Review
 Principles of Planning
• Principle of Contribution to objectives
• Principle of Sound and Consistent Premising
• Principle of Limiting Factors
• Principle of commitment
• Principle of Coordinated Planning
• Principle of Timing
• Principle of Efficiency
• Principle of Flexibility
• Principle of negotiable Change
• Principle of Acceptance
 Advantages of Planning
• Planning provides Basis for Cooperative and Coordinated
Effort
• Planning reduces the need for crises management
• It enable san organization to capitalize opportunities and face
challenges
• Planning Reduces Uncertainties
• Planning promotes Efficiency
• It provides Criteria for Decision
• Planning Facilitates Timely Execution of Complex Tasks
• It releases forces of innovation and creativity
• It provides basis for control
 Limitations of Planning
• Uncertainties of the future
• Premium on the present
• Past Decisions
• Administrative Problems
• Externally Imposed Conditions
• Human Problems
• Rapid Change
• Expense and Time