3. Planning Planning is the design of a desired future and of effective ways of bringing it about. ____________________ Planning is looking ahead in order to visualize and decide a future course of action to allow to achieve a desired goal.
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7. Nature of Planning 1. Planning is the most important function of management. 2. Planning has central role in linking all other managerial functions. 3. Planning is pervasive and oversees all other managerial functions.
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13. Plans Plans outline how goals are going to be met including resources allocation, schedules and other necessary actions to accomplish the goals
14. Effectiveness: is the achievement of objective. Efficiency: Is the achievement of objective with least amount of resources.
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18. Single Use or One Time Plan It is specifically designed to meet the needs of a unique situation and is created in response to non-programmed decisions that managers make.
19. Standing Plans Ongoing plans that provide guidance for activities repeatedly performed and are created in response to programmed decisions that managers make.
21. Programmed Decision A repetitive decision that can be handled by a routine approach.
22. Specific Plans These plans are clearly defined and explicit and leave no room for interpretation.
23. Subject Plans These plans are limited to one particular aspect of an organization’s activates. eg. Marketing Production Recruitment Financial Manpower etc
24. Directional Plans These are flexible plans that set out general guide lines and permit considerable discretion to users.
25. Short Term Plans Plans that are formulated to cover a period of less than one year.
28. Strategic plans These plans are organization–wide, establish overall objectives and position an organization in term of its environments.
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30. Objective It is a desired outcome for groups or an entire organization. Goal It is a desired out come for an individual.
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32. Real Objectives Objectives that an organization actually pursues, as defined by the action of its Management.
33. Traditional Objective Setting Objectives are set at the top and then broken down into sub-objectives for each level in an organization. The top imposes its standards on every one below.
34. Principle of Planning The more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises the more coordinated and realistic planning will be.
39. Premises This is the anticipated environment in which plans are expected to operate and include forecasts of the future and conditions that are likely to affect the operation in future.
40. Procedures A series of interrelated sequential steps that can be used to respond to a structured problem.
42. Structured problem It is a straightforward, familiar and easily defined problem. Non Structured problem A new problem for which information is ambiguous or incomplete.
43. Budget A budget is a numerical plan for allocating resources to specific activities. A budget is a statement of expected results expressed in numerical terms.
44. Types of Budget Revenue : A budget that projects future sales Expense: A budget that lists the primary activities by a unit and allocates amount to each Profit: A budget to determine a unit’s contribution to overall profit of an organization
45. Cash: A budget that forecasts how much an organization will have and how much it will need to meet expenses Capital Expenditure: A budget that forecasts investments in property, buildings and major equipment. Fixed: A budget that assumes a fixed level of sales or production. Variable: A budget that takes into account those cost that vary with volume of production.
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