1.
Planning is the basic function of management and with it starts the other
functions of management.
In short planning refers to decide in advance what
to do , how to do, when to do & who is to do,
deciding about all these aspects is called planning.
We can say Planning is 'Thinking before hand'.
Planning seeks to bridge the gap between
where we are and where we want to go.
Planning is what managers at all levels do.
It requires taking decisions since it involves making a choice from alternative
courses of action.
What is PLANNING ?
FACT

2.
FEATURES OF PLANNING
*Planning Focuses on Achieving Objectives:
Management begins with planning and planning begins
with determing of objectives.
*Planning is the Primary function of
Management:Planning puts down the foundation
for other operations of management.
*Planning is Pervasive: The time spent by the
higher-level managers in the process of planning is
comparatively more than the time spent by the
middle-level and lower-level.

3.
*Planning is
Continuous:
Plans are
outlined for a
particular
period of time,
perhaps for a
period, a
quarter or a
year.
*Planning is
Futuristic: Planning
decides the paln of
action what is do
be done, how is to
be done, when is to
be done , by whom
is to be done.
*Planning involves
Decision
Making:Planning
becomes a necessity
when there are many
alternatives to do a
job.
*Planning is a
Mental Exercise:
As it is related to
thinking before
doing something
.

4.
ADVANTAGES OF PLANNING
 REDUCES UNCERTAINITY
 BRINGS COOPERATION
 ECONOMY IN OPERATION
 ACHIEVING
PREDETERMINED GOALS
 REDUCES COMPETITION

5.
LIMITATIONS OF PLANNING
INTERNAL LIMITATIONS

6.
EXTERNAL LIMITATIONS OF PLANNING
 Changes of Goverment Policies.
 Lobour unions invoked industrial actions.
 Technological Changes.
 Competitor's Policies.
 Natural Disasters.
 Change in Demand and Prices.

7.
PRINCIPLES OF PLANNING
 A Principle of good planning is that individual, short-term decisions should
support strategic, long-term goals.

8.
IN MANAGEMANT WE HAVE 6 TYPES OF PRINCIPLES OF PLANNING
According to this principle, every plan and sub-
plan should make positive contributions towards
goals.
This principle stated that managers
should identify the factors having
only limited achievements of the
desired goals.
 PRINCIPLE OF CONTRIBUTION TO OBJECTIVE
 PRINCIPLE OF LIMITING FACTORS

9.
According to these principles of
planning, plans should be flexible.
 PRINCIPLE OF FLEXIBILITY
 PRINCIPLE OF NAVIGATIONAL CHANGE
Manager needs to periodically check events of
the plan and redraw plans to maintain the
move toward a desired goal.

10.
This principle determines the ‘Time period‘
of organisation.
This principle of planning tells that the
targets and the goals are the first
activity.
 PRINCIPLE OF COMMITMENT
 PRINCIPLE OF PRIMARY PLANNING

11.
 The planning function of
management is one of the most
crucial ones. It involves setting
the goals of the company and
then managing the resources to
achieve such goals. As you can
imagine it is a systematic process
involving six well thought out
steps. Let us take a look at the
planning process.
PLANNING PROCESSES

12.
*DEVELOPING PROCESS : Planning is concerned
with the future which is uncertain.Therefore, the
manager is required to make certain assumptions
about the future. These assumptions are called
premises.
*SETTING OBJECTIVE: The first and foremost
step is setting objectives. Every organisation
must have certain objectives.Objectives or
goals specify what the organisation wants to
achieve.

13.
*IDENTIFYING ALTERNATIVE COURCES OF ACTION: Once objectives are
set,assumptions are made. Then the next step would be to act upon them. There
may be many ways to act and achieve objectives. All the alternative courses of
action should be identified. The course of action which may be taken could be
either routine or innovative.
*EVALUATING ALTERNATIVE COURCES : in this step, the positive and negative aspects of
each alternative need to be evaluated in the light of objectives to be achieved.Every
alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the
planning premises and within the availability of capital.
*SELECTING ALTERNATIVES: This is the real point of decisionmaking. The best
plan has to be adopted and implemented. The ideal plan, of course, would be
the most feasible, profitable and with least negative consequences. Most plans
may not always be subjected to a mathematical analysis. In such cases,
subjectivity and the manager’s experience, judgement and at times, intuition
play an important part .

14.
*IMPLENTING THE PLAN: After having
decided the chief plan and the subsidiary
plans, they are to be implemented. After
implimenting the plans the sequence of
differnet activities has to be decided.
*FOLLOW-UP ACTIONS : To see whether plans
are being implemented and activities are
performed according to schedule is also part of
the planning process. Monitoring the plans is
equally important to ensure that objectives are
acheived.

15.
TYPES OF PLANNING
 COVERAGE
OF ACTIVITIES
 IMPORTANCE OF
CONTENT
 TIME PERIOD
INVOLVE
• CORPORATE
PLANNING
• FUNCTIONAL
PLANNING
• STRATEGIC PLANNING
• OPERATIONAL
PLANNING
• LONG-TERM
PLANNING
• SHORT-TERM
PLANNING

16.
• Corporate planning is creating a
strategy for meeting business goals
and improving your business.
• Functional plans develop a planning
vision for a particular issue or topic area
within a organisation

17.
• “Strategic plans are all about why
things need to happen,” It’s big
picture, long-term thinking.
• Operational planning is what
happens when a team or
department draws from a
company-wide strategic plan and
puts it under a microscope.

18.
• Long-term planning usually
covers, the plans which are more
then 1 years.
• Short-term planning
covers period of six
months to one year.

19.
OBJECTIVES OF PLANNING
 "An Objective is a specific
commitment to achieve a
misureable results in a given
time period "
 "A managerial Objective is the
intended goals that prescribe
definite scopes and suggests
directions to the planning
efforts of a manager"

20.
FEATURES OF OBJECTIVES
• Every organization has objectives rather it is started to achieve certain
objectives.
• The objectives of a business organization may be
broad as well specific.
• Objectives have hierarchy.
• Business objectives may change as per the
environmental changes or change in social needs.
• All organizational objectives are inter-related.
• An organization tries to fulfill the needs and aspirations of society.
• The objectives should be based on practical situations.

21.
CLASSIFICATION OF OBJECTIVES
GENERAL ORGANIZATION
-BASED
TIME-BASED OTHER
TYPE
• Survival
• Growth
• Goodwill
• Profit
• Social
Responsibilit-
y
• Mission & goals
• Strategic objective
• Operational
objective
• Short-term
• Intermidiate
• Longterm
• Personal

22.
MANAGMENT BY OBJECTIVE [MBO]
 Management by objectives (MBO) is a
strategic management model that aims to
improve organizational performance by
clearly defining objectives that are agreed to
by both management and employees.
 According to the theory, having a say in goal
setting and action plans encourages
participation and commitment among
employees, as well as aligning objectives
across the organization.
STRATEGY WAS FORMULATED BY PETER DRUCKER IN 1950.

23.
SOME MAJOR STEPS TO BE FOLLOWED IN MBO
 The first step is to either determine or revise
organizational objectives for the entire
company
 The second step is to translate the
organizational objectives to employees.
Drucker used the acronym SMART (specific,
measurable, acceptable, realistic, time-
bound) to express the concept.

24.
 Step three is stimulating the participation of
employees in setting individual objectives.
 Step four involves monitoring the progress of
employees.
 The fifth step is to evaluate
and reward employee progress. This step includes
honest feedback on what was achieved and not
achieved for each employee.

25.
Advantages of MBO
Advantages of MBO.
 Since Management by objectives (MBO) is a result-oriented process and focuses on
setting and controlling goals, it encourages managers to do detailed planning.
 Both the manager and the subordinates know what is expected of them and hence
there is no role ambiguity or confusion.
 The managers are required to establish measurable targets and standards of
performance and priorities for these targets. In addition, the responsibilities and
authority of the personnel is clearly established.
 It makes individuals more aware of the company goals. Most often the subordinates are
concerned with their own objectives and the environment surrounding them. But with
MBO, the subordinates feel proud of being involved in the organizational goals. This
improves their morale and commitment.

26.
 Management by objectives (MBO) often highlights the area in which the employees need
further training, leading to career development.
 The system of periodic evaluation lets the subordinates know how well they are doing.
Since MBO puts strong emphasis on quantifiable objectives,the measurement and
appraisal can be more objective, specific and equitable.

27.
Disadvantages of MBO
 Group goal achievement is more difficult. When the goals of one deportment depend on
the goals of another department, cohesion is more difficult to obtain. For example, the
production department cannot produce a set quota if it is not sufficiently supplied with
raw materials and personnel.
 Most managers may not be sufficiently skilled in interpersonal interaction such as
coaching and counseling, which is extensively required, MBO can only succeed if it has
the complete support of the top management.
 Management by Objectives (MBO) may be resented by subordinates. They may be under
pressure to get along with the management when setting goals and objectives and these
goals may be set unrealistically high. This may lower their morale and they may become
suspicious about the philosophy behind MBO

28.
CASE STUDY
1.Flows Technology’ deals in bulb manufacturing business. It plans for a
successful year of production and sale this year. It has in advance given
targets to all its departments and employees. The departments and
employees are happy about this. They know that now they won’t have to do
unconcerned activities thus leading to more focused approach resulting in
saving of resources. The company is thinking of starting two new plants in
the southern portion of India. For this some concrete plan has to be made.
The main core team of the company has decided to weigh all the options
and then choose the best one. The road might be long but the company is
geared to face all the challenges.
In the above case identify importance of planning highlighted

29.
Answer 1:
The importance of planning indicated in the above case are:
Planning provides directions. It has in advance given targets to
all its departments and employees.
Planning reduces overlapping and wasteful activities. They
know that now they won’t have to do unconcerned activities
thus leading to more focused approach resulting in saving of
resources.
Planning facilitates decision making. The main core team of
the company has decided to weigh all the options and then
choose the best one.

30.
2.Rajesh is at the real point of decision making in the course of
his planning. He has arrived at this point after identifying
various alternative courses of action. After identification he
was thoroughly involved in the evaluation of each of these
alternatives. He later got involved into making several
permutations and combinations of these alternatives to arrive
at this point.
Through which stage of the planning process is Rajesh going?
Also give the next two steps of planning process.

31.
Answer 2:
Rajesh is at the real point of decision making in the course of his
planning. He has arrived at this point after identifying various
alternative courses of action. After identification he was thoroughly
involved in the evaluation of each of these alternatives. He later got
involved into making several permutations and combinations of
these alternatives to arrive at this point.
The stage through which Rajesh is going is ‘Selecting an alternative’.
The real point of decision making is selecting an alternative.
The next two steps in the process of planning are ‘Implementing the
plan’ and ‘Follow through’.

32.
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