By: Group 1 CCS

1A
Introduction
to Planning
Meaning and Definition of
Planning
Is a course of action vs. goals.

It requires an active participation of

the entire organization to achieve the
goals.

Rational and systematic way of

making decisions.
Concept of
Planning
Characteristics of Planning
1. Managerial function- for the management.

2. Goal oriented- defining the goals of the

organization.

3. Pervasive- planning must be present in all

types of management.

4. Continuous process- on going process.

5. Intellectual process- it involves the
application of mind, to think, forecast, and
innovate.

6. Futuristic- it encompasses looking into the

future.

7. Decision making- before taking every action

for the company, it must have the best choice
of decision.
Steps taken for Planning

1. Recognizing need of action- be aware

of the business opportunities in the firm's
external environment as well as within
the firm. The best example for this is
SWOT Analysis. SWOT stands for
Strengths, Weaknesses, Opportunities and
Threats.
2. Setting objectives- we establish the objectives
for the whole organization. It provides general
direction, objectives of departments and will be
more planned and detailed.

3. Developing premises- it has two types, the

internal and external assumptions.
EXTERNAL deals with
INTERNAL deals
political environment, social
with the policies,
environment, the
availability of
advancement of technology,
resources, quality of
competition, government
management, etc.
policies, etc.
4. Identifying alternatives- in way to achieve
the objectives of the firm, there must be a
multitude of choices. There must be options
available to the manager.

5. Examining alternative course of action-

evaluate and closely examine each of the
alternative plans. The alternative plans need to
be evaluated in light of the organizational
objectives.
6. Selecting the alternative- the best and most
feasible plan will be chosen to be implemented.

7. Formulating supporting plan- the managers

will have to come up with one or more
supporting plans which helps with the
implementation of the main plan.

8. Implementation of the plan- the last step

will put into action to achieve the objectives of
the organization.
Planning is looking forward
and control is looking
backward.
Types of Planning
1. Operational planning
- how things need to happen
- guidelines of how to accomplish the mission
are set.

2. Strategic planning
- why things need to happen.
- it's a big picture, long-term thinking. It starts
at the highest level with defining a mission
and casting a vision.
3. Tactical planning
-what is going to happen.
-there are many focused, specific, and short-term
plans, where the actual work is being done, that
support the high-level strategic plan.

4. Continguency planning
-when something unexpected happens or when
something needs to be change.
Importance of Planning
1. Planning provides a sense of direction- it
states in advance what and how the work is to be
done. It serves as guidance in a way.

2. Planning reduces uncertainty- it anticipates

any future changes in the industry or organization.

3. Planning reduces wastefulness- all work is

carried out without interruptions or waste of time.
4. Planning invokes innovation- it encourages
the managers to broaden their horizons and forces
them to think differently, creatively, perceptively
and innovative.

5. Makes decision=making easier- planning

makes it easier for all managers across all levels
to make decisions with some ease.

6. Establishes standards- once the business

planning is done, the managers now have set
goals and standards.
Limitations of Planning
1. Rigidity- once the planning function is
complete and the action plan is set, then the
manager tends to only follow the plan.

2. Not ideal in dynamic conditions- in such a

dynamic environment, it becomes challenging
to predict future changes.
3. Planning can also reduce creativity- while
making a plan takes creativity after that,
managers blindly follow the plan. They do not
change the plan according to the dynamic
nature of the business.

4. Planning is expensive- cost consuming

process. At certain times, the cost of the
planning process can outweigh its benefits.
5. Not completely accurate- while planning,
we have to forecast the future and predict
certain upcoming events in the organization
and the industry. So of course, there cannot be
hundred percent certainty in such cases.
Suggestions for Planning
1. Don't let tools drives your policy.

2. Have a plan and be prepared to change it.

3. Know your stakeholders.

4. Be transparent.

5. Keep track of where you are and where

you're going.
 6. Be honest about the cost.

7. Stay human.

8. Support collaboration.

9. Always be thinking about the boundaries.

10. Understand where the data comes from

and where it’s going.
Than
k
you!
