Planning

Requires decisions on ..
What should be done How it should be done Who will be responsible Where the action is to be taken Why is it done

Planning is the first step of management process concerned with the establishment of objectives and analysis of present limitations for attaining such goals

Advantages
Increases the organizations ability to adopt future eventualities Helps crystallize objectives Ensures a relatedness among decision Helps the company remain more competitive in its industry Reduces unnecessary pressures of immediacy Reduces mistakes and oversights Ensures a more productive use of resources Makes control easier Increases effectiveness of a manager Helps the organization progress in a manner considered most suitable

Limitations
Effectiveness depends upon correctness of assumptions Planning is expensive Planning delays actions Encourages a false sense of security

Guidelines for effective planning:

Involve top management only at key points in the planning process Involve line execs in developing the plans Do not look for the perfect answer Planning should provide realistic targets & alternatives ways to achieve them Plans should start on a small scale and e expanded only when the execs have learned the technique & have become convinced of their usefulness

Steps .
Crystallizing the opportunity Securing and analyzing necessary information Establishing planning promises and constraints Ascertaining alternative courses of action or plans Selecting the optimum plan Determining derivative plans Fixing timing of introduction Arranging future evaluation of effectiveness of the plan

Types of plans
According to time dimension:
Short term: Upto one year Medium Term: >1 yr but <5yrs Long term : >5yrs

Types of plans
Objectives/goals Strategies & tactics Standards Budgets Policies Procedures Programmes Rules Methods

Goals /objectives
End results to be achieved They give direction to activities Require creative thinking and foresight

Strategies and tactics

Strategies are aimed at counteracting the actions of the opponents Tactics are immediate decisions based on the executives judgement and experience whilst facing an actual situation

Standards
Measure of level of achievement Very helpful in evaluating deviations from the plan

Budgets
Used as both- planning and control device May be expressed in units of product, finance etc

Policies
General statements aimed at guiding thinking whilst making decisions Eg: promotions should be from within the company or the existing staff

Procedures
Involves a selection and establishment of a logical series of tasks within the framework of predetermined policies and objectives

Programmes
Programme integrates policies, procedures etc required for effecting a certain course of action

Rules
Rules are related to procedures as they guide action but there Is no time sequence involved Eg: Procedure for handling mail may require a rule all letters received should be replied to on the same day

Methods:
Prescribes specifically and in detail how a task is to be done Constitutes the best method of performing a task