Detailed Notes on Planning
Concept of Planning
Defini on: Planning is a systema c decision-making process aimed at achieving goals and
objec ves. It includes determining ac vi es and resource requirements.
Hierarchy of Plans:
o Goals and Objec ves: Goals represent the organiza on’s overarching mission, while
objec ves are measurable steps towards achieving these goals.
Key Elements of Planning
1. Plans and Policies:
o Plans: Define ac ons to achieve goals.
o Policies: Broad guidelines for decision-making, forming a framework for achieving
objec ves.
2. Procedures, Rules, and Strategies:
o Procedures: Defined methods/processes to manage ac vi es.
o Rules: Set principles for specific ac ons or restric ons.
o Strategies: Comprehensive plans to achieve goals.
3. Resources, Programmes, and Budget:
o Resources: Include materials, people, technology, and finances.
o Programmes: Combine goals, policies, and procedures for a purpose.
o Budget: Numerical statement of inputs and outputs for resource planning.
Planning Process
1. Se ng Objec ves:
o Establish goals considering organiza onal resources.
o Communicate objec ves clearly to employees.
2. Developing Premises:
o Make assump ons about future condi ons using forecasts.
3. Lis ng Alterna ves:
o Iden fy various ways to achieve objec ves.
4. Evalua ng Alterna ves:
o Assess feasibility, pros, and cons of each op on.
5. Selec ng an Alterna ve:
o Choose or combine alterna ves for the most feasible and profitable solu on.
6. Implemen ng Plans:
o Translate plans into ac on, communicate them to employees, and allocate
resources.
7. Follow-Up:
o Con nuously monitor and adapt plans as needed.
Types of Planning
1. Strategic Planning:
o Long-term and undertaken by top management.
o Focuses on organiza onal goals and strategies.
2. Tac cal Planning:
o Mid-term, specific to func onal areas (e.g., marke ng, HR).
o Concerned with implementa on.
3. Opera onal Planning:
o Short-term and detailed for daily opera ons and processes.
Features of Planning
Primary Func on of Management: Forms the founda on of other management ac vi es.
Pervasive: Relevant across all levels of an organiza on.
Futuris c: Focused on forward-looking ac vi es.
Con nuous: Requires regular review and adjustments.
Decision-Oriented: Involves cri cal thinking and problem-solving.
Mental Exercise: Requires intellectual engagement.
Significance of Planning
1. Provides Direc on:
o Ensures clarity in ac ons and goals, leading to unified efforts.
2. Reduces Uncertainty:
o An cipates future risks based on past experiences and predic ons.
3. Minimizes Waste:
o Avoids redundant and overlapping ac vi es through coordinated planning.
4. Encourages Innova on:
o S mulates crea ve and effec ve problem-solving methods.
5. Facilitates Decision-Making:
o Predefined goals and assump ons guide faster decisions.
6. Establishes Standards for Control:
o Comparison of planned vs. actual performance to iden fy devia ons.
7. Focuses on Objec ves:
o Directs employee efforts toward achieving organiza onal goals.
