MANAGERIAL PLANNING

INTRODUCTION:
Planning is the beginning of the process of management. Planning is outlining a future course of action in order to achieve an objective i.e planning is getting ready to do something tomorrow. Organisation often fails not because of lack of resources but because of poor planning. Effective planning provides answers to the questions like What to do ? How to do ? Who is to do ? When to do ?

MEANING : Planning is a function performed by the managers at all levels. It is looking into the future. It bridges gap between where we are and where we want to go. Planning is the basic process by which we use to select our goals and determine the means to achieve them. Lots of information has to be gathered and processed before a plan is formulated.

DEFINITION: M.C. Farland Planning in business is selecting the best course of action for achieving the pre-determined objective of the business after making a careful evaluation of present conditions and future trends regarding the external forces and internal resources.

IMPORTANCE OF PLANNING
To achieve goals / objectives. Proper allocation of resources. To cope up with change. Facilitates control. Helpful in decision making. Avoiding business failure.

CHARACTERISTICS:
Planning is an intellectual process, Primacy of planning. Planning is objective oriented. Planning is flexible and dynamic in nature. Leads to efficiency and economy. Co ordination. Realistic. Planning is continuous.

PRINCIPLES OF PLANNING:
Effectiveness in planning depends on understanding the following principles: 1. Take time to plan. 2. Principle of limiting factors. 3. Planning can be top-down and bottom-up. 4. Involvement and communication will all those concerned. 5. Principle of efficiency of operation. 6. Plan must be flexible and dynamic. 7. Principle of revision.

PLANNING PROCESS:
1. Recognizing need for action. 2. Gathering necessary information. 3. Establishing objectives. 4. Establishing planning premises. (a) Internal premises. (b) External premises. 5. Decide planning period.

6. Identification of alternatives. 7. Evaluation of alternatives. 8. Choice of alternative.

9. Formulation of supporting plan.

10. Participation and follow up.

TYPES OF PLANS:
ON THE BASIS OF NATURE AND SCOPE.

STANDING OR REPETITIVE USE PLANS.

SINGLE USE PLANS.

STANDING OR REPETITIVE USE PLANS.

Purpose or mission.
Objectives. Policies. Procedures. Rules.

Strategies.

SINGLE USE PLANS:

PROGRAMMES.

BUDGET.

STRATEGIES
INTRODUCTION: A Strategy is an action plan which sets the direction that a company will be taking. It is a decision making choice and would involve consideration for internal strengths and weaknesses and external environment effecting a company. In a business set up, a planner should see plans and policies of his competitors and then modify or re-adjust his plans so that he may prove the superiority of his product or service. DEFINITION: M.C FARLAND An executive behaviour, whose purpose is to achieve success for the company or personnel goals in a competitive environment based on the actual action.

FEATURES:
Strategies consist of general programmes of action. Strategies are never static. Strategies are formulated at the top level management. Strategy is a right combination of both internal and external factors. Strategy is forward looking. Strategy involves choices. Strategy involves tactics used by the opponents to counter them.

TYPES OF STRATEGIES:
STABILITY STRATEGY. GROWTH STRATEGY.

RETRENCHMENT OR RETREAT STRATEGY.

COMBINATION STRATEGY.

MODELS OF STRATEGY FORMATION:

Clarifying business objectives.

Appraisal of external environment. Appraisal of internal envirinment. Examining alternative strategy. Choice of strategy.

Strategic planning and operational planning involve two different types of thinking. Strategic decisions are fundamental and directional, and over-arching. Operational decisions, on the other hand, primarily affect the day-to-day implementation of strategic decisions. While strategic decisions usually have longer-term implications, operational decisions usually have immediate (less than one year) implications. Strategic Planning * Views future as unpredictable * Views planning as a continuous process * Expects new trends, surprises and changes * Considers a range of possible futures & emphasizes strategy development based on assessment of the organization's internal (strength and weaknesses) and external (opportunities and threats) environment. * Asks: "Based on our current understanding of environment, are we doing the right thing? How can we best use our resources to achieve or mission?" Operational Planning * Views future as something that needs to be implemented now. * Focuses on setting short-term (less than one year) objectives. * Assumes much more detailed planning regarding who and how activities will be accomplished * Asks: "What do we need to be doing for the upcoming year/immediately to best accomplish our mission."

STRATEGIC V/S OPERATIONAL PLANS:

STRATEGIC PLANS OPERATIONAL PLANS

Strategic planning relates to direction, vision and mission.

Operational planning is how you will accomplish your mission.

Strategic decisions in plans are Operational decisions in plans fundamental and directional, and on the other hand, primarily over-arching. affect the day-to-day implementation of strategic decisions. Strategic plans usually have Operational plans usually have longer-term implications. immediate (less than one year) implications.

Strategic Planning Views future as Operational Planning Views unpredictable. future as something that needs to be implemented now. It Answers: "Based on our current understanding of environment, are we doing the right thing? How can we make best use our resources to achieve or mission? It Considers a range of possible futures & emphasizes strategy development based on assessment of the organization's internal and external environment. It Answers: "What do we need to be doing for the upcoming year/immediately to best accomplish our mission. It assumes much more detailed planning regarding who and how activities will be accomplished.

LINKING STRATEGY TO STRUCTURE.

The Organization structure utilizes a four-phase framework that is: 1. determining the design framework. 2. designing the organization. 3. developing the details, 4. implementing the new design. Organization structure requires a clear understanding of organization strategy. This is supported by lots discussion. It is recognized that a good fit between strategy and organizational structure creates a competitive advantage for an organization .

MANAGERIAL PLANNING.

PRESENTED BY: TASKIA JIDDA.