Planning

Concept of Planning
Planning Defined
Nature & Characteristics of
Planning
Importance of Planning
Types of Planning
Process of Planning

By
Dr Vartika Dadhich
 Management Functions

Planning –The process of deciding the future course of action.

Organizing – The process of assigning tasks and allocating

resources to accomplish organizational objectives.

Staffing – The process by which managers place the right man in

the right position at the right time.

Leading – The process of influencing, motivating and directing

people towards the achievement of organizational goals.

Controlling – The process that measures actual performance with

the planned performance and monitors the progress of an
organization towards its goals.
 Planning

• Planning is the primary function of management that

involves formulating a future course of action for
accomplishing a specific purpose.
• The other functions of management like organising,
staffing, directing & controlling depends on planning.
• Planning provides direction to all managerial functions.
• Planning enables managers to decide what task to do,
how to do the task, when to do the task and by whom
the task has to be done.
 Planning Defined ….
• Planning is the continuous process of making present entrepreneurial decisions systematically and with the
best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these
decisions, and measuring the results of these decisions against the expectation through organized
systematic feedback.
Peter Drucker
• Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap
between where we are, and where we want to go. It makes possible things to occur, which would not
otherwise occur.
Koontz and O’Donnell
• Planning is deciding in advance what is to be done. It involves the selection of objectives, Policies,
Procedures, and Programmes from among alternatives.”
M.E Harley

https://www.youtube.com/watch?v=u7yo7e3HhKA&t=441s
https://www.youtube.com/watch?v=hKN6wbLnlB4
Features of Planning
• Planning is the Primary Function of
Management
• Planning is Goal Directed
• Planning is Pervasive
• Planning is Futuristic
• Planning is an Intellectual Activity
• Planning is a Continuous process
• Planning involves making Choices
• Planning is Flexible
 Importance of Planning
• Planning Provides Direction to Action
• Planning Reduces Risk and Uncertainty
• Planning minimizes duplication of activities and
waste of resources.
• Planning Helps in Achieving Coordination and
facilitates Control
• Planning Facilitates Decision-Making
• Planning Leads to Economy and Efficiency in
Operations
• Planning sets standards for the Controlling function.
• Planning begins with the Determination of Objectives
and Directed Towards their Achievement
• Planning supports innovative ideas
Steps in
Planning
Process
Types of Plans
Strategic Plan

• Strategic Plans involve decisions about an organization’s long-term

goals such as its growth and survival etc. These are made keeping in
mind the overall organizational objectives

• It is a high-level planning done by top-level management in the

organization. This type of planning is concerned with the judicious
allocation of resources to achieve all the goals in the long run.

• It includes your company's mission statements, vision, and strategic

goals, and the actions you’ll take to achieve those goals.

• Before planning a strategy, the organization needs to take a look

outside and be aware of the economic conditions, and other
environmental factors, which can either provide an opportunity for
growth or pose a threat. It also requires looking inside to find out
weaknesses and strengths.
 Mission: It is a broad statement of an organization’s purpose
that provides an overall guide to what organizational members
think is important.
MAHE Mission Statement:
• Be the most preferred choice of students, faculty, and
industry.
Mission and • Be in the top 10 in every discipline of education health
Vision sciences, engineering, and management.

Statements Vision: A vision statement describes what a company desires to

achieve in the long run, generally in a time frame of five to ten
years, or sometimes even longer.

MAHE Vision Statement:

• Global leadership in human development, and excellence in
education and healthcare.
Tactical Planning
• Tactical planning is taken care of by mid-level management. It involves breaking down broad
strategic goals and objectives into specific and more manageable tasks that can be completed
within a shorter time period, maybe ranging from a few weeks to a few months.
• Tactical plans typically focus on divisional or departmental activities like marketing,
production, finance, personnel, etc.

Operational Planning
• Operational planning is for short time periods. It is required for day-to-day activities providing
the organization with details to clearly identify the who, what, when, why, and where of all
parties involved.
• Operational plans are created by lower-level management such as unit supervisors and foremen.
They are the most specific plans that help businesses run smoothly.

Contingency planning
• Contingency planning is the process of identifying potential risks or challenges that may arise
Types of Plans
 Types of Plans
Single-Use Plans
• Single-use plans are made for a specific objective or purpose. They outline the
plan of action employees can take to achieve a specific project. Once employees
reach the final objective of the project, the plan no longer exists and gets
discarded.

• Different types of Single Use Plans are – Programmes, Budgets, and

Strategies.

Standing Plans
• Standing plans are created to deal with situations that occur repeatedly. This
type of plan gives broad guidelines for repetitive activities, and once developed
might be implemented in similar situations in the organization.

• They especially help lower-level managers take care of recurring activities and
routine decisions while top-level managers can concentrate on important
strategic issues. Examples of standing plans are objectives, rules, policies,
and procedures.
 Types of Plans
Strategy :
A strategy is a complete and all-inclusive plan for achieving said objectives. A
strategy is a plan that has three specific dimensions
1. Establishing long-term objectives
2. Selecting a specific course of action
3. allocating the necessary resources needed for the plan
Strategy is generally reserved for the formulation of the formulation at the top
level of management. It defines all future decisions and the company’s long-
term scope and general directions.

Policy :
• Policies are generic statements, which guide to channelize energies towards a
particular strategy. It is an organization’s general way of understanding,
interpreting and implementing strategies. For example, most companies
have a return policy or recruitment policy or pricing policy, etc.
• Policies are made across all levels of management, from major policies at the
top-most level to minor policies. The managers need to form policies to help
the employees navigate a situation with predetermined decisions.
 Types of Plans
Procedure
• Procedures are the next types of plan. They are a stepwise guide for the routine to carry out the activities. These stepwise
sequences are to be followed by all the employees so the activities can be fulfilled in an organized manner.
• The procedures are described in a chronological order. So when the employees follow the instructions in the order and
completely, the success of the activity is pretty much guaranteed.
• Take for example the procedure of admission of a student in a college. The procedure starts with filling out an
application form. It will be followed by a collection of documents and sorting the applications accordingly.

Rules
• Rules are very specific statements that define an action or non-action. Also, rules allow for no flexibility at all, they are final.
All employees of the organization must compulsorily follow and implement the rules. Not following rules can have severe
consequences.
• Rules create an environment of discipline in the organization. They guide the actions and the behaviour of all the employees
of the organization. The rule of “no smoking” is one such example.

Program
• Programmes are an in-depth statement that outlines a company’s policies, rules, objectives, procedures etc. These
programmes are important in the implementation of all types of plan. They create a link between the company’s objectives,
procedures and rules.
• Primary programmes are made at the top level of management. To support the primary program all managers will make other
programs at the middle and lower levels of management.
Methods
• Methods prescribe the ways in which in which specific tasks of a procedure must be performed. Also,
methods are very specific and detailed instructions on how the employees must perform every task of
the planned procedure. So managers form methods to formalize routine jobs.
• Methods are very important types of plan for an organization. They help in the following ways
• give clear instructions to the employees, removes any confusion
• Ensures uniformity in the actions of the employees
• Standardizes the routine jobs
• Acts as an overall guide for the employees and the managers

Budget
• A budget is a statement of expected results the managers expect from the company. Budgets are also a
quantitative statement, so they are expressed in numerical terms. A budget quantifies the forecast or
future of the organization.
• There are many types of budgets that managers make.
1) Financial budget, that forecasts the profit of the company.
2) Operational budgets, generally prepared by lower-level managers.
3) Cash budgets monitor the cash inflows and outflows of the company.
Limitations of Planning
Despite several advantages, the planning function also has certain
limitations. Here are the key limitations of planning.

1. Time-Consuming
2. Expensive
3. Paperwork
4. Rigidity
5. Probabilistic
6. Delay in Actions
7. Misdirection
8. Gap between Targets and Results
9. Resistance Towards Change
10. Problems of over-target
11. Reasons for frustration.
 Decision Making

• Decision making –Meaning & Definition

• Nature & Characteristics of Decision-
making
• Decision-making Process
• Levels of decision-making
• Types of Decisions
 Decision Making …

“Management means decision-making.”

-
William Moore
Decision-making is an indispensable
component of management process and
manager’s life which is filled with making
decisions after decisions.
Managers see decision-making as their
central job because they constantly
choose what is to be done, who is to do,
when to do, where to do, and how to do.
https://www.youtube.com/watch?v=pPIhAm_WGbQ
Decision Making - Defined
• A decision is a choice from among two or more, alternatives.
• Decision-making is defined as an act of choice by the manager
from among two or more possible alternative courses in a given
situation.
• “Decision-making is to solve any obstacle that stands between
decision maker and accomplishment of organizational goals.” Hodge
and Johnson
• “Decision-making is a process involving information, choice of
alternative actions, implementation, and evaluation that is directed to
the achievement of certain stated goals.” Szilagyi
• “A decision is a course of action which is consciously chosen for
achieving a desired result”. Haynes and Massie.
• In other words, decision-making is the process by which the decision-
maker tries to jump over the obstacles between his current position
and the desired future position. It should be noted that a decision is a
choice between two or more alternatives while decision-making is a
sequence of certain steps leading to that selection.
 The decision-making process is crucial for a
variety of reasons:
• Reduces Risk: A structured approach helps to
mitigate potential risks by considering all
Importance of alternatives.

Decision- • Increases Efficiency: When decisions are

made methodically, businesses avoid costly
Making errors and streamline operations.
• Improves Accountability: A well-
documented process allows stakeholders to
understand how and why certain decisions
were made, promoting transparency.
 1. Selective process
2. Continuous activity
3. Goal-oriented process
4. Risk-taking and challenging
Nature Of 5. Mental/Intellectual activity.
Decision 6. Human and rational process that involve
intuition, subjective values and judgment.
Making 7. Based on reliable information
8. Time-consuming activity
9. Require effective communication
10. Pervasive Process.
11. Demonstrates commitment
12. Ensures the best solution to the problem
Steps in
Decision–
making
Process
 Steps in Decision–making
Process
There are generally six steps involved in a well-structured decision-making process:
Step 1: Identify the Problem
• The initial step involves identifying the need for a decision. Clearly define the problem or challenge to ensure
you are addressing the right issue.
Step 2: Gather Relevant Information
• Collect data and information from both internal and external sources. This could include financial reports, market
research, or expert opinions that will help inform your decision.
Step 3: Identify Alternatives
• Brainstorm possible solutions or courses of action. For businesses, these alternatives could range from launching
a new product to entering a new market.
Step 4: Evaluate the Alternatives
• Compare the pros and cons of each option. This evaluation may involve analyzing costs, potential risks, benefits,
and long-term implications.
Step 5: Make the Decision
• After considering all alternatives, choose the option that best addresses the problem and aligns with your goals.
Step 6: Implement the Decision
• Put the chosen solution into action. This step often requires careful planning to ensure successful
implementation.
Step 7: Review the Decision
• Once the decision is made and put into action, assess the outcomes. Did the decision solve the problem? If not,
modifications might be necessary.
 Personal Decision: Buying a Car

• Identification: Realizing the need for a new vehicle due to increased

commuting requirements.
• Objectives: Define criteria such as budget, fuel efficiency, safety features,
and space requirements.
• Information Gathering: Researching different car models, reading
reviews, comparing prices, and visiting dealerships.
• Generating Alternatives: Considering various makes and models based
on the defined criteria.
• Evaluation: Assessing each option based on cost, features, reliability, and
personal preferences.
• Decision: Choosing the most suitable car that best meets the defined
objectives and preferences.
• Implementation: Purchasing the selected car, arranging financing (if
needed), and completing paperwork.
• Monitoring and Evaluation: Assessing the satisfaction with the chosen
car over time and making adjustments if necessary.
 • Identification: Recognizing the opportunity to increase market share by
offering additional products.
• Objectives: Define goals such as increased revenue, customer
satisfaction, and market penetration.
• Information Gathering: Analyzing market trends, customer feedback,
Business competitor offerings, and production capabilities.
• Generating Alternatives: Considering different product ideas, pricing
Decision: strategies, and distribution channels.

Expanding • Evaluation: Assessing the potential demand, profitability, risks, and

alignment with company objectives for each product idea.
Product • Decision: Select the most viable product(s) to add to the product line.

Line • Implementation: Developing and launching the new product(s),

adjusting marketing strategies, and training staff if necessary.
• Monitoring and Evaluation: Tracking sales performance, customer
feedback, and market response to evaluate the success of the expansion.
 Organizational Decision: Selecting a Vendor

• Identification: Recognizing the need for a new vendor to supply raw materials for
production.
• Objectives: Define criteria such as quality, reliability, cost-effectiveness, and
delivery time.
• Information Gathering: Researching potential vendors, requesting quotes, and
conducting background checks.
• Generating Alternatives: Identifying multiple vendor options that meet the
defined criteria.
• Evaluation: Assessing each vendor’s capabilities, reputation, financial stability,
and compatibility with organizational values.
• Decision: Choosing the vendor that best meets the criteria and offers the most
value to the organization.
• Implementation: Negotiating contracts, establishing communication channels,
and integrating the new vendor into the supply chain.
• Monitoring and Evaluation: Monitoring vendor performance, quality of supplies,
and adherence to contractual terms to ensure ongoing satisfaction and efficiency.
Levels Of Decision Making

Decisions that take place at the top

of the organization typically are
labeled strategic or high-risk
decisions.

These may involve gathering

intelligence, setting directions,
uncovering alternatives, assessing
these alternatives to choose a plan
of action, or implementing a plan.
 1. Programmed Decisions:
 These are repetitive in nature and do not require much deliberation.
 These types of decisions are to be handled through established rules,
policies and standard operating procedures.
 These types of decisions are made by middle level or lower-level
management in accordance with some policies, rules and procedures.
 Programmed decisions are used for dealing with complex as well as with
Types of uncomplicated issues.

Decisions  Decisions are action-oriented and mistakes are not too costly.
 vi. Resources required are less.

Example: McDonald’s employees are trained to Big Mac according to

specific procedures. Starbucks, and many other organization use
programmed decisions to purchase new supplies (coffee beans, napkins etc.)
 2. Non- Programmed Decisions:-
The decisions which are non repetitive in nature and made by top level
management like decision about mergers, acquisitions and takeovers, new
facilities, new products, labor contracts and legal issues are non
programmed decisions.
These decisions are of long-term horizon.
These decisions require high resources.
These decisions are thinking-oriented and mistakes can put the company in
jeopardy.
Intuition and experience are major factors in this type of decision.
Example -
Programmed VS. Non-programmed Decisions
 Major VS. Minor
Decisions
• Major decisions are considerably more important than
others and are prioritized. They are called major
decisions.
• For example, replacement of man by machine,
diversification of product etc.

• Contrary to that, some of the remaining decisions are

considerably less important than others and are not so
prioritized. They are minor decisions.
• For example, store of raw materials, etc.
 Routine decisions are:-
• Tactical decisions
• Taken frequently to achieve a high degree of efficiency in the
organizational activities.
• Taken at middle or lower level of management, who are
responsible for the supervision of actual operations.
• of short-term duration and affects a limited part of the
organization.

Strategic Decisions are:-

• Taken generally by the top management and middle
management and these are related to policy matters.
• Plant location, selection of distribution channels, decision
Routine Vs. relating to a new product etc. are some examples of strategic
Strategic business decisions.
• Seriously affect the interests of the business if any mistake
Decisions occurs.
• Have a requirement of a good deal of deliberation and these are
unique and one-time decisions which involve long-range
commitments and huge investments.
Group Decisions

It is a type of participatory process in which

multiple individuals act collectively, analyze
problems or situations, consider and evaluate
alternative courses of action, and select from
among the alternatives a solution or solutions. This
type of decision-making is also known as
participative decision-making.

 A group can make decisions by consensus, in

which all members agree.

 In consultation decision making opinions of all

the members have to be taken into
consideration while making a decision.
 Advantages of Group Decision-making
• Synergy is the idea that the whole is greater than the sum of its parts. When a group
makes a decision collectively, its judgment can be keener than that of any of its
members.
• The sharing of information among group members is another advantage of the group
decision-making process.
• The group can generate a greater number of alternatives that are of higher quality
than the individual.
• This decision-making process will enhance employees’ skills and abilities, and help
them to grow and develop as organizational members as all members are involved in it.
• When employees contribute to the decision-making process, they tend to have a
greater commitment to implementing a decision, because they understand the reasons
behind the decision.
• The group decision-making is more democratic in nature, while individual decision-
making is perceived to be more autocratic in nature.
Thank You