Planning is setting objectives and targets and formulating an action plan to achieve them. It bridges the gap between the present position and the future desired position. Planning involves deciding in advance what is to be done in the future and selecting objectives, policies, and programs. Effective planning has well-defined objectives, is simple, comprehensive, flexible, achieves objectives at minimum cost, and involves participation of all concerned. Management by objectives is a process where managers set goals with their superiors to be achieved in the upcoming period and is evaluated periodically. It aims to clarify job expectations and relate individual performance to organizational goals.
2. Meaning:
Planning is a process of setting objectives and targets and formulating an action plan
to achieve them. It is concerned with both ends and means ,i.e.,what is to be done and
how is to be done.
In others words , Planning seeks to bridge the gap between where we are and where we
want to go.
Where we are? gap Where we want to go?
[ present position] [future position]
3. Defination:
According to M.E.HURLE,” Planning is deciding in advance what is to be done in future
.It involves the selection of objectives ,policies,procedures and programmes for
attaining the objectives.”
In the words of GRAY and SMELTZER,”Planning is the process of setting goals and
establishing methods or path for reaching them.”
Terry “Planning is the selection & relating of fact & making & using of assumption
regarding the future in the visualisation & formation of proposed activities believed
necessary to achieve desired result.”
4. Nature of Planning
Planning is
goal -oriented
Planning is
Pervasive
Planning is
continuous
Planning
involves choice
Planning is a
Mental
exercise
Planning is
Futuristic
Planning is
Flexible
Planning is a
primary
function
8. Essentials of effective planning
Well defined objectives are foundation of effective planning.
A plan should be simple and easy to understand by those who are to be
implement it.
A sound plan should always be comprehensive.
A plan should be flexible.
A good plan is one that achieves the objectives at a minimum possible price.
A good plan should reasonably be stable in the usual business conditions.
9. Every plan should be capable of being implemented.
A plan should be prepared with effective participation of all concerned .
It should be logical.
It must be time bound.
It must specify accountability for implementation.
11. TYPES OF PLANNING
1) Coverage of activities
a) Corporate planning
b) Functional planning
2) Importance of contents
a) Strategic planning
b)Tactical or operational planning
3) Time period involved
a)Long term planning
b) Short term planning
c) Medium term planning
12. 4) Degree of formalisation
a)Formal planning
b) Informal planning
13. PLAN
A Plan is a pre -determined set of actions to be taken and
resources to be used to achieve an objective.
According to KREITNER,”A PLAN IS A SPECIFIC ,DOCUMENT
INTENTION CONSISTING OF AN OBJECTIVE AND AN ACTION
STATEMENT .”
14. TYPES OF PLAN
Single -use planStanding plans
1)PROGRAMMES
2)BUDGETS
3)SCHEDULES
4)TACTICS
1) OBJECTIVES
2)STRATEGIES
3) POLICIES
4) PROCEDURES
5) RULES
6) METHODS
15. OBJECTIVES: Objectives are the desired result s that an organisation wants to
achieve within a specific time period.
STRATEGIES : Stragey means the long -range approach for dealing with the
organisation 's competitive environment with a view to win over competitors in
business.
POLICIES: Policies are the guidlines set to provide direction in decision -making
.These set the boundries around which decisions are made.
PROCEDURE: A procedure is a chronological sequence of steps or actions to be
taken to accomplish a specific task or job.
METHOD: A method is a prescribe way of completing a step in a procedure.
RULES: Rules are specific recorded statements that direct what must or must not
be done in a given situation.
16. PROGRAMME:A programme is an action plan consisting sequence and timing
of steps necessary to achieve objectives.
BUDGETS: A budget is a numerical plan containing expected results
inquantitative or numerical terms.
SCHEDULES:A schedule is a plan which indicates the time of
1)commencement of task 2)passing through different stages or processes ,and
3)finalising the task.
TACTICS: A tactic is a short term action plan for implementing stragies. These
are narrow plans for dealing with some particular small problems that aries in
the implementation of long range plans.
17. MANAGEMENT BY OBJECTIVES /MBO
The modern model of objective setting is known as
the'' Management by objectives or MBO''.This
model of objective setting was first offered by
Peter Drucker in 1954 in his book ,'The Practice of
Management'. Since then ,MBO theory and practice
has mushroomed and spreaded around the world by
different names. The other popular names of MBO
includes, “Mangement by Results (MBR)”,”Goal
management”,Planning by Objectives”,Joint Target
Setting,etc.
18. MEANING
The term MBO refers to a formal procedure in which each'
manager pair ' i.e.,a manager at any level and his immediate
superior manager jointly set the goals which the subordinate
manager is expected to attain in the upcoming short
period.This period is usually less than a year i.e.,a month,a
quater or a year.
According to CARLISLE,'' Management by Objectives is a
process by which the members of a work unit individually
meet with their superior to establish performance related
goals.''
19. Features of MBO
Goal -oriented process.
Common objectives and individual goals.
Participation and involvement.
An interactive approach.
A comprehensive approach.
A system approach.
It applies to total management system.
Aims at optimum result.
Simple universal approach.
Multiple uses.
20. Assumptions of MBO
Mutual Understanding: It assumes the existence of mutual
understanding between a superior and a subordinate.
Expected efforts and their contribution: It assumes that employees can
perform better when they clearly know what is expected of them and
how their individual efforts contribute to the overall performance of the
organisation.
Participation : It assumes that employees are interested to participates
in formulation of the plan that are to be implemented by them.
Evalution: It is also assumes that employees want to be evaluated. In
other words, they want to know the results of their efforts/performance.
Fair Reward: It also assumes that employees want to be fairly reward
for their performance.Rewards includes recongition ,promotion,higher
pay etc. and other things for personal development.
21. Objectives of MBO
To set organisational unit and individual goals by active participation of the
all concerned.
To set verifiable and measurable goal.
To measure and judge performance.
To relate individual performance to organisational goals.
To clarify both the job to be done and the expections of accomplishment.
To foster the increasing competence and growth of the subordinates.
To enhance communications between superior and subordinates.
To serve as a basis for judgements about salary and promotion .
To stimulate the subordinates motivation .
To serve as a device for organisational control and integration.
26. Suggestions for the effectiveness of MBO
The purpose of MBO programme should be made clear to all the members of
the organisation.
MBO programme must have full support,involvement and commitment of
the top management.
The top managers must state the clear -cut job descriptionsn of each
position in the organistion.
MBO should be integrated into the everyday activities of managers.They
should accept it as a part of the total management system.
The organistional environment must be condusive to the MBO.
Managers should be given adequate training in the philosophy and procedure
of MBO.
27. Proper resources should be allocated for the formulation and
implementation of MBO programme.
Proper participation of subordinates must be ensured in goal setting and
performance evaluation.
MBO programme should be integrated with the reward or remuneration
system.
Organisation system should be suitabily restructured.
MBO programme as far as possible be simple.
MBO programme should flexible and adaptable.
![ Meaning:
Planning is a process of setting objectives and targets and formulating an action plan
to achieve them. It is concerned with both ends and means ,i.e.,what is to be done and
how is to be done.
In others words , Planning seeks to bridge the gap between where we are and where we
want to go.
Where we are? gap Where we want to go?
[ present position] [future position]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)