GROUP 1

I. DEFINITION
OF PLANNING
 •Planning is the
first and foremost
function of
management.
• It is an intellectual process
of thinking resorted to
decided a course of action
which helps achieve the
pre-determined objectives
of the organization in
future.
• It is also the fundamental
function of management
and all other function like
organizing, staffing,
directing and controlling
must reflects planning
function of management.
•planning is forecasting
and deciding in
advance a course of
action to be followed
in the future.
• According to Terry, “ Planning
is the selecting and relating of
facts and the making and using
of assumptions regarding the
future in the visualization and
formulation of proposed
activities believed necessary to
achieved desired results.”
• H. Fayol says, “ Planning is
deciding the best
alternatives among others
to perform different
managerial operations in
order to achieve the pre-
determined goals.”
ESSENTIAL
NATURE OF
PLANNING
PRIMARY OF PLANNING
• The functions of management
include planning, organizing,
staffing, directing and controlling.
It is most basic management
function. As a matter of fact all
other function of management
largely depends upon planning.
AN INTELLECTUAL ACTIVITY
• Planning involves choosing the proper
course of action from among alternatives
& calls for decision-making which is an
intellectual process. Change in
environment bring opportunities, and
involved risk as well. It is the task of
planner to take advantage of
opportunities and minimize the risk.
A CONTINUOUS FUNCTION
• Management is a dynamic process
and planning as its function cannot
be an exception to it. More over as
plans beget 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.
PLANNING IS FLEXIBLE
• As already pointed out, while
planning, any one of the available
alternatives is selected. Planning
selects the best alternatives based
on certain assumptions. There is a
possibility of dead log in the
functions of the management.
FOR ALL MANAGERIAL FUNCTIONS

• Planning is a pervasive function of

management. It is found at all levels
and all departments of an
organization. Top management looks
after strategic planning. It involves
choosing the future course of action
from among alternatives.
II.TYPES OF
PLANNING
 OPERATIONAL PLANNING
• “Operational plans are about how
things need to happen,”
motivational leadership speaker
Mack Story said at LinkedIn.
“Guidelines of how to accomplish
the mission are set.”
 STRATEGIC PLANNING
• “Strategic plans are all about
why things need to happen,”
Story said. “It’s big picture,
long-term thinking. It starts at
the highest level with defining
a mission and casting a vision.”
 TACTICAL PLANNING
• “Tactical plans are about what is
going to happen,” Story said.
“Basically at the tactical level, there
are many focused, specific, and
short-term plans, where the actual
work is being done, that support the
high-level strategic plans.”
CONTINGENCY PLANNING
• Contingency plans are made
when something unexpected
happens or when something
needs to be changed. Business
experts sometimes refer to these
plans as a special type of
planning.
III. PLANNING AT
DIFFERENT LEVEL
IN THE FIRM
CORPORATE LEVEL STRATEGY
• Relates to the overall scope
the organization,its structures
and financing, and the
distribution of resources
between its different
consistent parts.
BUSINESS/COMPETITIVE LEVEL
STRATEGY
• Refers how the
organization competes in a
given market, its
approaches to product
development and to
costumers.
OPERATIONAL LEVEL STRATEGY
• It is concerned with how the
various subunits-
marketing,finance,
manufacturing and so on-
contribute to the higher level
strategies.
 IV. APPLICATION
TECHNIQUES AND
TOOLS IN
PLANNING
 VMOST
Vision, Mission, Objectives, Strategy, and Tactical.
• Success in an organization happens
with top-down or bottom-up
alignment. I was recently reminded
of is when working with a client who
stated that their tactical is not
connected to the strategy. VMOST
analysis is meant to help make that
connection.
 SWOT
Strengths, Weaknesses, Opportunities, and Threats.
• Strengths and weaknesses are internal to
the organization, opportunities and
threats are external. SWOT requires you
to be candid and provide an honest
assessment of the state of things. It
forces you to create a dialogue with
stakeholders to get different viewpoints.
Eventually, you focus in on the key issues.
 PEST
Political, Economic, Social and Technology.

• PEST reveals opportunities and

threats better than SWOT, the
direction of business change,
projects that will fail beyond your
control, and country, region and
market issues through helping you
create an objective view.
V. DECISION
MAKING
 DECISION MAKING
•is the process of
identifying a set of
feasible alternatives and
choosing a course of
action from them.
 • Decision-making is an
intermediate-sized set of
activities which begins
with an identifying
problem and ends with
choice making or decision
giving.
•Decisions can be made
without planning but
planning cannot be done
without making
decisions.
• Decision-making defined
as the process of
selecting a course of
action from the
alternatives.