“Planning is deciding in advance what to do, how to do it, when to do

it and who is to do it.” Koontz and O’ Donnell

“Planning is a trap laid down to capture the future.” Allen

“Planning is a thinking process, an organized foresight , a vision based

on the fact and experience that is required for intelligent
action.”Alford and Beatty
 nment
hanges in the enviro
Because of c

Set the standards to Provide

facilitate control Direction

The purpose
behind engaging
managers in
planning :

Minimize waste Reduce the impact of

and redundancy change
 Types of Plan

Breadth Time frame Specificity Frequency of Use

Strategic Long term Directional Single use

Operational Short term Specific Standing

Approach Reference Genesis

Formal Functional Proactive

Informal Corporate Reactive

(BUSINESS) Forecasting
 making the best possible judgment about
some future event
o aid analysis of economic, political and market information
o a ‘look ahead’ approach
 Who uses forecasts?
 Accountants - costs, revenues, tax-planning
 Personnel Departments - recruitment of new employees
 Financial Experts - interest rates
 Production Managers - raw materials needs, inventories
 Marketing Managers - sales forecasts for promotions
 Major Types of Forecasting Methods
 Subjective Methods
 Deterministic Techniques
assume a close causal relationship between present and the future

 Symptomatic Techniques
assume that turning points in economic activity may be determined
from information on economic indices

 Systematic Techniques
study of relationship(s) between economic factors in past, present
and future
Economic Forecasting
Sales Forecasting Methods
Methods
Advantages Limitations

 Essence of planning  Rule of thumb forecasts

 Futuristic  Unreliable
 Better coordination  Uncontrollable premises
 Controlling  semi- controllable premises
 Identifying environmental  controllable premises
forces
 A system in which specific performance objectives are jointly determined by
subordinates & their supervisors, progress toward objectives is periodically reviewed,
and rewards are allocated on the basis of that progress.

Overall
organizational
objectives

Divisional
objectives

Departmental
objectives

Individual
objectives

Elements in MBO
 Identify
Analyze the
opportunit-
environment
ies & threats

Identify the Reassess the

organisation’s current organization Formulate Implement Evaluate
mission, objectives, mission & strategies strategies results
and strategies objectives

Analyze the Identify

organization's strengths and
resources weaknesses