Planning

Planning can be defined as “thinking in advance –

 What is to be done in future?
 How is to be done?
 Where is to be done?
 When is to be done?
 By whom is to be done?”
In simple words we can say, planning bridges the gap between where we are standing today and where we wat to
reach.
"Planning is deciding the best alternatives among others to perform different managerial operations in order to achieve
the pre-determined goals."
--------- H. Fayol.

1. Purpose or Missions
The mission, or purpose (the terms are often used interchangeably), identifies the basic function or task of an
enterprise or agency or any part of it. Every kind of organized operation has, or at least should have a purpose or
mission if it is to be meaningful. In every social system, enterprises have a basic function or task that is assigned to
them by society. For example, the purpose of a business generally is the production and distribution of goods and
services. The purpose of a state highway department is the design, building, and operation of a system of state
highways. The purpose of the courts is the interpretation of laws and their application. The purpose of a university is
teaching and research. And so on.
Although we do not do so, some writers distinguish between purposes and missions. While a business, for example,
may have a social purpose of producing and distributing goods and services, it can accomplish this by fulfilling a mission
of producing certain lines of products. The missions of an oil company, like 'Exxon, are to search for oil and to produce,
refine, and market petroleum and a wide variety of petroleum products, from diesel fuel to chemicals. In the 1960s, the
mission of NASA was to get a person to the moon before the Russians. Hallmark, which has expanded its business
beyond greeting cards, defines its mission as "the social expression business .} ^ {2 ¿ It is true that in some businesses
and other enterprises, the purpose or mission often becomes fuzzy. For example, many of the conglomerates have
regarded their mission as synergy (the combined power of a group of things when they are working together that
is greater than the total power achieved by each working separately), which is accomplished through the
combination of a variety of companies.
People sometimes think that the mission of a business, as well as its objective, is to make a profit. It is true that every
kind of enterprise must have, as we pointed out in Chapter 1, a "surplus"-in business, a "profit"-goal or objective if it is
to survive and do the task society has entrusted to it. But this basic objective is accomplished by undertaking activities,
going in clearly defined directions, achieving goals, and accomplishing a mission.
 The purpose, identifies the basic function or task of an enterprise or agency or any part of it. Every kind of
organized operation has or at least a should have a purpose, if it is to be meaningful. The purpose of planning:

 Reduces uncertainty.
 Brings corporation and coordination.
 Economy in operation.
 Anticipate unpredictable contingencies.
 Achieving the predetermine goal.
 Reduced competitions.
Objectives: (Neither single use nor standing plan)
These are specific and measurable targets that the organization aims to achieve in order to support its overall purpose.
Objectives are usually more detailed than the purpose statement and help to clarify what the organization wants to
accomplish in the short to medium term. For example, a non-profit organization's objective might be "to increase the
number of after-school programs in underprivileged communities by 20% in the next 2 years".
Objectives should be SMART as:
 S – Specific
 M – Measurable
 A – Achievable
 R – Relevant
 T – Time bound

For example, increase in sale by 10% by six month or decrease in rejections by 2% by on month.

Features of objectives:

a) All activities are guided towards objectives.

b) Serve as guide for overall business planning.
c) Define the future state of affairs which the organization strives to realize.
d) These are usually set by top level management.

Strategy: (Neither single use nor standing plan)

These are the approaches or plans for how the organization will achieve its objectives and overall purpose. Strategies
provide a high-level view of what resources and actions will be necessary to achieve the organization's goals. For
example, a non-profit organization's strategy might be "to partner with local schools and community centers to provide
after-school programs in underprivileged communities".
 A strategy is a comprehensive plan to achieve the organizational objectives.
The dimensions of strategy are:
a) Determining long-term objectives.
b) Adopting a particular course of action.
c) Allocating resources for achieving the objectives.

 Strategy formulation is the task of top-level people and it must be to scan and understand clearly the business
environment before framing the strategy.
 The common decisions in strategy are whether to introduce a new product or not. If to introduce then how,
finding out customer for your products, making changes in existing products, etc.
 All the strategic decisions are greatly influenced by the business environment.
  Strategy defines the future decisions regarding the organization’s direction and scope in the long run.
 For example, choice of advertising media, sales promotion techniques, which channels of distribution to be
used, who are the customers, what is the demand, etc.
Features of Strategy:
a) It is the blueprint of the business and provides outline of business.
b) Strategy influenced by business environment.
c) Strategy directs future decision making and scope in long run.
d) A strategy provides the broad contours of an organization in the business.
e) Major strategic decisions will include decisions like whether the organization with continue in same kind
of business or combine new lines of activities or seek to acquire dominant position in the same business.

Policies: (standing plan)

 Policy can be defined as organization’s general response to a particular problem or situation.
 In simple word, it is the organization’s own way of handling the problems.
“Our policy customer first”
 Policies are made at every level because the managers at every level need to decide or predetermine the way of
handling a situation and policy act as a guide to take decisions in unexpected situation.
 Policy formation always encourages initiatives of employees cause employees have to deal with situations and
the of way handling the situation is decided in constellation with the employees.
 Then they will be able to handle the situation in a much better way.
Major policies are made to know all the stakeholders like customers, clients, competitor, supplier, etc. whereas minor
policies are for the internal use and are made to know insiders only with minute detail. B For example, purchase policy
may include- Form how many suppliers company should purchase, what is criteria for choosing among the suppliers.
"No credit policy.” “Make on buy policy.”
Features of policies:
a) Based on objective
b) Guides managers to implement strategy.
c) Policy is organization’s customized way of handling problem.
d) The policies define broad parameters with within which a manager may function.

Procedures: (standing plan)

 Procedures are required step established in advance to handle future conditions.
 The sequence of steps to be followed by employees in different situations must be predetermined so that
everyone follows same step.
 The procedure can be defined as the exact manner in which an activity has to be accomplished.
 So, procedures cut across all the departmental lines.
  For example, the procedure to handle the order by manufacturing department may involve sales department
also.
Features:
a) Sequence of steps do to carry on different activities.
b) Generally meant for insiders only.
c) Are mostly in chronological order.
d) The sequence of step or actions to be taken to enforce a policy and attain predetermined objectives.
e) Exact manner in the invest and activity has to be done.
f) Policy and procedures are interlinked with each other.
g) Procedures are steps to be carried out within the broad policy framework.

Methods: (standing plan)

Method can be defined as a formula is a systematic way of doing routine and repeat jobs. The managers decide in
advance the common way of doing jobs.
So that,
 There is no doubt in the minds of employees.
 There can be uniformly in actions of the employees.
 These helping in applying the techniques of registration and simplification.
 Act as guide for employees.
 Method deals with the task comprising one step of a procedure and specifies how this step has to be
performed.
 Selection of proper method safe time for money and efforts and increase efficiency.
If the common way of doing the job is not decided in advance, then there will be confusion, and comparison will
not be possible.
For example, the valuation of depreciation whether to use straight line or diminishing of balance method depreciation.

 Features of Methods:
a) Standard joint way in which task has to be performed.
b) Selection of right method save time, money and increase the efficiency.
c) Methods vary from task to task.

Rules: (standing plan)

This refers to the overall planning process, which involves identifying goals and objectives, determining strategies and
actions, and allocating resources to achieve those goals. Planning is an ongoing process that helps organizations adapt
to changing circumstances and achieve their goals more effectively.
 Rules spell out special actions on own actions of the employees.
  There is no creation allowed in rules, that is, they must be followed strictly and if rules are not followed then
strict action a can be taken against employees who are the disobeying the rules.
 Rules are spelt out to create the environment of discipline in the organization.
 For example, there can be rule of no smoking in the organization.
 Rules generally guide the general behavior of the employees; an employee cannot make any changes in them.

Features of Rules:
a) Code of conduct for general instruction in any organization.
b) Specifies what to do and what not to do.
c) Are rigid, stringent and compulsive in nature.
d) They are usually the simplest type of plan.

Programs: (Single use plan)

These are sets of coordinated activities and projects designed to achieve specific objectives within a particular time
frame. Programs are usually more specific than objectives and help to clarify what actions will be taken to achieve a
specific objective. For example, a company might have a program that focuses on reducing waste in its manufacturing
process.
 Programs are the combination of objectives, policies, procedures and rules.
 All this plan together forms a program.
 These programmers are made to get systematic working in the organization.
 The program is created relation between policies, procedures and goals.
 The programs also prepared at different levels.
 A primary program is prepared by top level and then to support the primary program supportive programs of
different levels are prepared for smooth function of the company.
 For example, Construction of shopping mall, opening new department etc.
Features:
a) Detailed statement about a project.
b) It is combination of objective, policies and procedures and rules.
c) It is prepared for various activities.
d) And systematic working in an organization.
e) Include entire gamut of activities.
f) In a program, mindset details of worked out its procedure, rules, budgets, within the broad
policy framework.
Budget: (single use plan)
These are the financial plans that identify the resources needed to achieve the organization's objectives and goals.
Budgets typically specify how resources will be allocated and how much money will be spent on specific activities or
programs. Budgets help to ensure that the organization has the necessary resources to achieve its objectives in a
responsible and sustainable manner. For example, a company might have a budget that outlines how much money will
be spent on research and development, marketing, and product development.
 Budget is the statement of expected result expressed in numerical terms.
 In budgets, the result is always measurable and most of the time these are financial in nature but it does not
mean that company papers only financial budget.
 Along with financial budget capital budget is prepared to find out the expected capital requirement.
 Operational budget is prepared where the instead of finance hourly unites are used to stating expected hours
the employees will be working.
 Budgets are prepared by managers at every level and low-level manager's generally prepared operational
budgets.

→ For example: Sales budget

Sale in unit = 100000
Price per unit = 20
Total sale budget = 20,00,000

Features:
a) Statement of expected result expressed in numerical terms.
b) Serves as standard for measuring Comparing and actual performance.
c) Qualifies future facts and figures.
d) Budget prepared separated by managers at every level. It is a controlling device from waste elevations
can taken care of.
 Nature or characteristics of planning:
1. Primary of function: The function of management includes planning, organizing, leading and controlling. As a
matter of fact, that all other function of management largely depends planning. For example- Control can't exist
without planning. Organization is also set up with a plan and objectives on mind. Planning is therefore the
primary function of management.
2. An intellectual Activity's: Panning involves choosing the proper course of action from among alternatives and
calls for decision-making which is an intellectual process. Change in environment brings opportunities and
involved risk as well. It is the task of planner to take advantage of opportunities and minimize the risk.
3. A continuous function: Management is a dynamic process and planning as its function cannot be an exception
to it. More over as plans be get a number of sub-plans and since plans have to be revised in the light of
changing environment, planning becomes a continuous function of management.
4. Planning is Flexible: As already pointed out, while planning, anyone of the available alternatives is selected.
Planning selects the best alternatives based on certain assumptions.
5. Pervasiveness of planning: For all managerial functions planning is a pervasive function of management. It is
found at all levels and all departments of an organization. But the contents and qualities of planning differ in
different levels.

 Objectives of planning
The essential objectives of planning can be described as follows:
1. To bring certainty in future events: Planning provides a proper guidance to an organization how to bring
certainty in future events for the achievement organizational goals. As we know that future is uncertain and
risk-oriented. What will occur tomorrow we cannot say with certainty. Hence to avoid these future
uncertainties and to bring certainly in future events organization has to make plan.
2. To provide Specific Direction: Planning provides a specific direction for doing various activities in an
appropriate manner.
3. To bring economy in managerial operations: It is the important objective of planning. Planning provides a
proper guidance to an organization how to bring economy in all around operations. So that, organization can
easily utilize all available resources in the best and cheapest way.
4. Forecasting: Forecasting is the essence of planning. The objective of planning is to predict about the future
course of events.
5. To attain predetermined goals: It is one of the most essential objectives of planning. In fact, in the
absence of planning any organization cannot be able to achieves its predetermined goals in a proper way.
6. To get victory over competitions: Planning provides a proper guidance to an organization how to get victory
over market competitions.
 STEPS IN PLANNING
Planning is a process of creating a roadmap or a framework for achieving specific goals or objectives. The steps in
planning generally include the following:

1. Being aware of opportunity: The first step in planning is to be aware of the opportunities that are available.
This involves understanding the current situation and identifying potential areas for growth or improvement.
2. Setting objectives or goals: Once you have identified opportunities, the next step is to set specific and
measurable objectives or goals. This helps to focus the planning process and provides a clear target to aim
for.
3. Considering planning premises: Planning premises refer to the assumptions or conditions that may impact
the planning process. This step involves considering factors such as market trends, competitor activity, and
regulatory changes.
4. Identifying alternatives: The next step is to identify alternative courses of action that could be taken to
achieve the set goals. This may involve brainstorming or conducting research to determine the feasibility of
different options.
5. Comparing alternatives in light of goals sought: Once the alternatives have been identified, they need to be
evaluated in the context of the goals that have been set. This involves assessing the potential benefits and
drawbacks of each option.
6. Choosing an alternative: Based on the evaluation of the alternatives, a decision is made about which course
of action to pursue.
7. Formulating supporting plans: Once the alternative has been chosen, the next step is to develop supporting
plans. This may include creating a project plan, developing a marketing strategy, or outlining a staffing plan.
8. Numberizing plans by making budgets: The final step in planning is to numberize the plans by creating a
budget. This involves assigning financial resources to each of the supporting plans and determining the
overall cost of the chosen course of action. The budget may need to be revised based on feedback from
stakeholders or changes in the external environment.
 BEING AWARE OF OPPORTUNITY COMPARING ALTERNATIVES
IN LIGHT OF GOALS SOUGHT
In light of: Which alternative will give us the best
chance of meeting our goals at the
The market Competition
lowest cost and highest profit?
What customers want
Our strengths
Our weaknesses
CHOOSING AN ALTERNATIVE

Selecting the course of action, we will

pursue

SETTING OBJECTIVES OR GOALS

Where we want to be and what we FORMULATING SUPPORTING PLANS

want to accomplish and when
Such as plans to:
Buy equipment
Buy materials
Hire and train workers
CONSIDERING PLANNING PREMISES Develop a new product
In what environment -internal or
external-will our plans operate?
NUMBERIZING PLANS BY MAKING BUDGETS

Develop such budgets as:

IDENTIFYING ALTERNATIVES Volume and price of sales

Operating expenses
What are the most promising Necessary for plans
alternatives to accomplishing our Expenditures for
objectives? capital equipment

STEPS IN PLANNING
 Types of plans:
Plans can be differed from different angle. These are explained below:

Plans

1. Classification on basis of nature 2. Classification on basis of period 3. Classification on basis of

structure

a. Goals a. Short term plan a. Strategic plan

b. Continuing / on-going b. mid-term plan b. Tactical plan
plans / Standing plans c. Long term plan c. Functional plan
c. Single use plans

1. Classification on the nature:

a. Goals: A goal is a desired result or possible outcome that a person or a system envisions, plans and
commit to achieve.
b. Continuing or Ongoing plans/ Standing Plans: Which plans are usually made one and retain their value over a
period of years while under-going periodic revisions and updates are called continuing or ongoing plans.
Standing Plans can be several types:
i. Policy: A policy provides a broad guideline for manager to follow when dealing with important areas of
decision making. Policies are general statements that explain how a manager should attempt to handle
routine management responsibilities.
ii. Procedure: A procedure is a set of step-by-step directions that explains how activities or tasks are to be
carried out.
iii. Rule: A rule is a clear statement that tells an employee what he/she can and can't do.

c. Single use plans: Single use plans apply to activities do not recur or repeat.
Types of single use plans:
i. Program: While a big plan is taken to achieve special predetermined goals is called program.
ii. Project: A project is simple tasks of planning under program.
iii. Budget: Budget is a numeric outlook of planning

2. Planning on the basis of time periods:

a. Short term plans: While a plan is set for under or full fiscal year is called short term plans.
b. Mid-term plans: While a plan is taken for at least one year and maximum for five years is called mid-term
plan.
c. Long term planes: while a plan is taken for at least five year or more than five years is called long term plan.
3. Planning on the basis of Structural:
a. Strategic plans: If any decision able plan is taken for long time to achieve whole organizations goals in the
competitive market is called strategic plan.
b. Tactical plans: Tactical plans is the process of breaking down the strategic plan into distinctive,
short- term plans. A tactical plan is concern with what that the lower-level units within each division must do,
how they must do it, and who is charge at each level. Tactics are the means needed to activate a strategy and
make it work.
c. Functional plan: If a realistic and attainable plan is taken for a short period for mid and low level of
organizations under strategic and tactical plans is called functional plan. These types of plans Can be-

 Department plan.
 Regional plan.
 Master plan.

 Planning bridges the gap from where we are to where we want to go.
Planning involves thinking before acting. It anticipates the future and decides the course of action to be taken. It is
the process that decides in advance the objectives to be achieved and formulates plans, policies, and methods to
achieve them. In this way, we can say that it bridges the gap between where we are and where we want to go.

 Barriers to Effective Planning

Planning for the future of an organization can be difficult. Everywhere there have some positive effect and some
negative effect. In the case of planning also there have Some barriers to effective planning those are explain below:
1. Fear: Fear can be a barrier to effective planning. When management focuses on the fear of change or lack of
success rather than the potential of growth, it makes it difficult to plan for the future of an organization.
2. Shortsightedness (অদূরদর্শিতা): Shortsighted behaviour can cause executive managers to stop in their
tracks. By focusing on current projects rather than broader, long-term goals and day-to-day management
rather than future growth and profitability, shortsightedness is a barrier to effective planning.
3. Negativity: Negativity or a lack of positive ideas and suggestions for the future, can create an impassable
barricade when it comes to strategic planning.
4. Communication Barriers: Difficulty in communicating goals and plans can stall a planning session. whether
communication barriers stem from language or cultural differences, or whether a manager simply is an
ineffective communicator, poor communication can make it hard to express goals and organizational mission.
5. Poor Leadership: Leaders who are insecure or fearful in their own position within an organization are
ineffective when it comes to planning. A leader must inspire those around him to work to their full capability.
6. Lack of creativity: An ability to think originally and grow in new directions are often keep a company alive and
vibrant while one business model work for many years, organizations have to think creatively and take
changes by expanding and growing into new areas. But lack of creativity it is not possible. It is a barrier of an
effective planning.

 Overcoming the Barriers to planning’s: The ways for overcoming the barriers to planning in an organization are
given below:
 1. Starting at the top: Most plans fail largely due to lack of top management support. So, it logically follows that
to make the planning process a success effective planning must start at the top of the organization.
2. Recognizing the limits to planning: Another guideline for effective planning is to recognize its limitations.
3. Communication: It is not enough that planning be initiated at the top. But it must also be properly
communicated to others in the organization.
4. Revision and Updating: It means that planning has to be treated as a dynamic process in which long-term and
mid-term plans are frequently revised and updated in response to new information and the completion of
short-term plans.
5. Discussion: A discussion with manager in which the fundamentals of planning are outlined, with emphasis on
the solution of day-to-day and long-term problems may go some way towards removing psychological barriers
to planning.
6. Training: Technical barriers to effective planning can be overcome through proper training in planning
techniques.
7. Explanation of planning objectives: Misunderstanding of the nature of planning can be removed by an
explanation of its objectives in terms related to the manage own practical experience.
8. Use of Aids of planning: Finally, to make planning effective, the manager should know some aids for
developing about effective plans.

Advantages of Planning:
1. Clear direction: Planning helps provide a clear direction and purpose to your actions. It helps you define your
goals and objectives, making it easier to prioritize and focus on what needs to be done.
2. Improved decision-making: Planning allows you to consider different options and evaluate their potential
outcomes before making a decision. It helps you analyze the pros and cons, identify potential risks, and make
more informed choices.
3. Resource allocation: By planning ahead, you can allocate your resources effectively. You can identify the
resources you need, such as time, money, and manpower, and allocate them efficiently to achieve your goals.
This helps in avoiding wastage and maximizing productivity.
4. Time management: Planning helps you manage your time more efficiently. By setting deadlines and creating a
schedule, you can prioritize tasks and ensure that you have enough time to complete them. This reduces stress
and improves productivity.
5. Adaptability: While planning provides a structured approach, it also allows for flexibility and adaptability. You
can revise your plans based on changing circumstances, new information, or unexpected challenges. This helps
you stay on track and adjust your actions as needed.

Limitations of Planning:
1. Uncertainty: Planning is based on assumptions and predictions about the future, which can be uncertain and
unpredictable. External factors, such as market conditions or unexpected events, can disrupt the execution of
the plan. This means that plans may not always work as intended.
2. Rigidity: Excessive planning can lead to rigidity and inflexibility. If you stick too strictly to a plan, you may miss
out on new opportunities or fail to adapt to changing circumstances. It's important to strike a balance between
following the plan and being open to adjustments.
3. Time-consuming: Planning requires time and effort to gather information, analyze data, and create a detailed
plan. This can be a disadvantage when there is a need for quick decision-making or when circumstances are
constantly changing. Overly complex planning processes can slow down progress.
4. Overdependence on planning: Relying too heavily on planning can lead to a lack of spontaneity and creativity.
Sometimes, the best ideas and solutions emerge from unplanned situations or through experimentation.
Planning should be complemented with flexibility and open-mindedness.
5. Unrealistic assumptions: Plans are often based on assumptions about future conditions, which may not always
hold true. If the assumptions turn out to be incorrect, the entire plan may become ineffective. It's important to
regularly reassess and update plans based on real-time information.