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Principles of Management
Planning
Definition
• According to Allen, “A plan is a trap laid to capture the
future.”
• According to Koontz & O’Donell, “Plannin...
Basic Managerial Functions
• Planning is one of the primary functions of management
• Setting of goals to be achieved and ...
Characteristics of Planning
• Goal-oriented
• Looks ahead
• An intellectual process
• Involves choice & decision making
• ...
Advantages
• Facilitates management by objectives
• Minimizes uncertainties
• Provides competitive edge and improves effec...
Disadvantages
• Internal Limitations
– Rigidity
– Misdirected Planning
– Time consuming
– Probability in planning
– False ...
Types
• Long Term & Short Term
• Formal & Informal Plans
• Proactive & Reactive Plans
• Strategic
– A strategic plan is an...
 Strategic Planning
A strategic plan is an outline of steps
designed with the goals of the entire
organization as a whole...
No planning
• Creates aimlessness and wandering
Planning Process
PLANNING IN WORK
ENVIRONMENT
Case Study
The Conceptualisation
• Investors like Harshad Mehta diverted Rs. 35 Bn from the
bank system via Ready Forward Deals to th...
Operational / Functional Planning
• 20 yrs ago we started in Mumbai and then went nation wide
electronically using technol...
Planning for Unforeseen Eventuality
• As we grew the volumes increased, we needed a robust
system and a Disaster Recovery ...
LONG-TERM, FORMAL,
PROACTIVE, OPERATIONAL PLAN
A Case Study on
The Planning Process
• Set Goal
– A pharmaceutical company set a goal for itself to venture into the
obesity drug market s...
The Planning Process (contd.)
• Create Plan
– Based on the analysis the company formulated a phased Business
Plan with pro...
THANK YOU
Principles of management   planning
Principles of management   planning
Principles of management   planning
Principles of management   planning
Principles of management   planning
Principles of management   planning
Principles of management   planning
Principles of management   planning
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Principles of management planning

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Principles of management planning

  1. 1. Principles of Management Planning
  2. 2. Definition • According to Allen, “A plan is a trap laid to capture the future.” • According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”. • According to Alford and Beatt, “Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action.” • According to Abraham Lincoln “We must plan for the future, because people who stay in the present will remain in the past.”
  3. 3. Basic Managerial Functions • Planning is one of the primary functions of management • Setting of goals to be achieved and lines of action to be followed precedes the organization, direction, supervision and control. Hence planning precedes other functions of management. • Planning involves selecting objectives or goals and the course of actions to achieve them: • Provides the bridge to take us from where we are to where we want to go; • Is a rational approach to achieving pre-selected objectives - based on innovation, knowledge and purpose; • Decision making in choosing the best from alternative courses of action and is integral to planning;
  4. 4. Characteristics of Planning • Goal-oriented • Looks ahead • An intellectual process • Involves choice & decision making • Primary function of management • Continuous Process • Designed for efficiency • Planning is pervasive
  5. 5. Advantages • Facilitates management by objectives • Minimizes uncertainties • Provides competitive edge and improves effectiveness • Encourages innovations / brain-storming • Facilitates control and co-ordination • Helps in achieving economies of scale / synergies
  6. 6. Disadvantages • Internal Limitations – Rigidity – Misdirected Planning – Time consuming – Probability in planning – False sense of security – Expensive • External Limitations of Planning – Political Climate – Labour Union – Technological changes- – Policies of competitors – Natural Calamities – Changes in demand and prices
  7. 7. Types • Long Term & Short Term • Formal & Informal Plans • Proactive & Reactive Plans • Strategic – A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission. • Operational Plans – An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
  8. 8.  Strategic Planning A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission. – Formulation – What, where – Ends – Vision – Effectiveness – risk – Long Term – Formal  Operational Planning An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans – Implementation – How – Means – Plans – Efficiency – Control – Short term / Long term – Formal / Informal Strategic Planning vs. Operational Planning
  9. 9. No planning • Creates aimlessness and wandering
  10. 10. Planning Process
  11. 11. PLANNING IN WORK ENVIRONMENT Case Study
  12. 12. The Conceptualisation • Investors like Harshad Mehta diverted Rs. 35 Bn from the bank system via Ready Forward Deals to the equity market which they manipulated. • The Government of India on the recommendation of Pherwani Committee in 1991 set up the National Stock Exchange of India - NSE. • This was a planned move by the MOF to put an end to the weaknesses of BSE like low transparency, bureaucracy and unreliable clearing and settlement systems, which led to the stock market crashed in April 1992. • The Government & the Ministry of Finance Strategically Planned the inception of a new generation Stock Exchange • Today the NSE is the largest stock exchange in India and the fourth largest in the world. • Proper planning, has led this achievement.
  13. 13. Operational / Functional Planning • 20 yrs ago we started in Mumbai and then went nation wide electronically using technological advancements. • We also planned for segments like – Capital Market – Futures & Options – Currency Derivatives • All this required planning at different stages – By scouting the investment market potential – understanding of market dynamics and investor appetite – Laying a detailed procedure for implementation with timelines – Creating investor awareness and educating the common man on investing safely – Developed the necessary back-end system for implementation – Going live with the project !! • This entire process involved leading a group of people and monitoring the progress of the plan at different stages
  14. 14. Planning for Unforeseen Eventuality • As we grew the volumes increased, we needed a robust system and a Disaster Recovery (DR) site to protect us from any unforeseen circumstances • We planned for a DR site at Chennai. • We implemented a Business Continuity Management (BCM) plan and deployed elaborate DR solutions as a part of the BCM exercise in the form of a four-step plan – Business Impact Analysis – Strategy Selection – Detailed Plan development and plan maintenance – Testing, revisions and modifications
  15. 15. LONG-TERM, FORMAL, PROACTIVE, OPERATIONAL PLAN A Case Study on
  16. 16. The Planning Process • Set Goal – A pharmaceutical company set a goal for itself to venture into the obesity drug market since it is one of the major lifestyle diseases. – The goal set, objective is established and a Mission is set ! • Gather / Analysis Data – To do a market assessment it assigned the task to a research agency to gather and analysis the data on the target audience and market dynamics. – Guideline for Strategy formulation, evaluation of alternates, market reality, risk assessment – Basically preparing the ground for formulation the business plan
  17. 17. The Planning Process (contd.) • Create Plan – Based on the analysis the company formulated a phased Business Plan with proper implementation timelines to roll out the drug in the market – A rational approach to achieving pre-selected objectives - based on market analysis, knowledge and purpose – choosing the best option action from the alternates available by brain- storming through involvement and co-operation of the functional management team – A business plan formulated has the investment layout, the projected profit & loss for a period of 5-10 years keeping in mind the best and the worst case scenarios based on internal and external factors. • Implement & Monitoring the Plan – Using the Formulated Plan as a guideline company implemented the same and continuously monitored its progress until successful Market Launch of the Drug !
  18. 18. THANK YOU

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