Planning and Nature of Planning

1. “WHAT IS
PLANNING?”
&
“NATURE AND
PURPOSE
OF PLANNING”
Reporters:
EVELYN CAMPACINO
FELICIANO S. ABABON III

2. WHAT IS
PLANNING?
Reported by: EVELYN CAMPACINO
PART I:

3. WHAT IS PLANNING?
• Planning involves defining the organization’s goal, establishing strategies for
achieving those goals, and developing plans to integrate and coordinate work
activities.
• Planning is concerned with both ends(what) and means(how).When we use
the term planning, we mean formal planning. In formal planning, specific
goalscoveringaspecifictimeperiodaredefined.
• These goals are written and shared with organizational members to reduce
ambiguity and create a common understanding about what needs to be done.
Finallyspecificplanexistforachievingthesegoals.

4. WHAT IS PLANNING?
• Why doManagers Plan?
– Toprovide direction tomanagersandnon-managers
– To reduce uncertainty(anticipate change, develop appropriate
responses)
– Tominimizeswaste andredundancy
– Toestablishthe goalsorstandards usedincontrolling

5. WHAT IS PLANNING?
Planning&Performance
Generally,thereis apositive relationshipbetweenplanningand performance.Butwecan’tsay,the
organizations that formallyplanalways outperform thosedon’t plan.
Formalplanningisassociated withpositive financialresults-higherprofits, higherreturnonassets andso
forth.Good jobplanningandimplementingthoseplansplays abigger partinhighperformancethandoes
howmuchplanningisdone.
Formalplanningmaynotalways performbecauseofexternalenvironmentorforces(govt. regulationsor
laborunion strike. Planning-Performancerelationshipseemsto beinfluencedbytheplanningtime
frame(timelimitation).

6. WHAT IS PLANNING?
Goals&Plans
Planningisoften calledtheprimarymanagementfunctionbecauseitestablishesthebasisforall
theotherthingsmanagersdoastheyorganize,leadandcontrol.
Planninginvolvestwoimportantaspects:goalsandplans.
– Goals(Objectives)aredesired outcomesortargets.Goalsguidemanagementdecisions
andformthecriteriaagainstwhichworkresultsaremeasured.
– Plansaredocumentsthatoutlinehowgoalsaregoingtobemet.Theyusuallyinclude
resource allocation,schedules(programs/agendas)andothernecessary actionsto
accomplishthegoal.

7. WHAT IS PLANNING?
PlanningunderUncertainty
Uncertaintyisoneofthecontingencyfactorsthataffectthetypesofplansmanagersdevelop.Inan
uncertainenvironment,managersshoulddevelopplansthat arespecific(notvague) butflexible.
Managersneedto recognizethat planningisanongoingprocess.Plansserveasaroadmap,although the
destination maychangedueto dynamicmarket condition.
Managersshouldbereadyto changedirectionsifenvironmentconditionswarrant(permits). Managers need
to stayalerttoenvironmentalchangesthat mayaffectimplementationandrespondasneeded.

8. WHAT IS PLANNING?
ApproachorTechniquesofPlanning
Organizationalplanscanbebestbeunderstoodbylookingatwhodoestheplanning.
TraditionalApproach-Planningisdoneentirelybytop-levelmanagementwhooften areassisted
byaformalplanningdepartment(agroupof planningspecialistwhosesoleresponsibilityisto
helpwritethevariousorganizationalplan).
Underthisapproach,plansdevelopedbytop-levelmanagersflowdownthroughother
organizationallevels,muchliketraditionalapproachtogoalsetting.
Astheyflowdownthroughtheorganization,theplansaretailoredtotheparticularneeds ofeach
level.

9. WHAT IS PLANNING?
Involvingmoreorganizational membersintheplanningprocess.
Inthis approach,plansaren’thandeddown fromoneleveltothenextbut insteadaredevelopedby
organizational membersatthevarious levelsandinthevarious workunits to meettheirspecificneeds.(e.g-
Dellemployeesfromproduction, supply management,andchannelmanagementmeetweeklyto makeplans
based oncurrentproductdemandandsupply.)
Inaddition, workteamssettheirowndailyschedulesand tracktheirprogress against theirschedules.Ifa
teamfallsbehind,teammembersdeveloprecoveryplanto tryto getback onschedule.
Whenorganizational membersaremoreactivelyinvolvedinplanning,theyseethattheplansaremorethan
justsomethingwrittendown onpaper.Theyactuallyseethat theplansareused indirectingand
coordinatingwork.

10. WHAT IS PLANNING?
CriticismsofPlanning
1.Planningmaycreaterigidity. Formalplancanlockanorganization into specificgoals tobeachieved
within specifictimeframes.Whenthesegoalswereset,theassumption mayhavebeenthat the
environmentwouldn’tchange.Iftheenvironmentchanged,managerswhofollowaplanmayfacetrouble.
Manager’sstickingonoriginalinsteadofbeingflexiblewiththeenvironmentchange(situation) canbea
recipefordisaster.

11. WHAT IS PLANNING?
CriticismsofPlanning
2.Planscan’tbedevelopedforadynamicenvironment.Thebasicassumption ofplanis –environmentwon’t
change.;ifassumption becomesfaulty-howplanbedone?Today’sbusinessenvironmentis oftenrandom
andunpredictable,Managingunderthoseconditionsrequiresflexibility,andthatmaymeannotbeing
tied(secured)to formalplans.
3.Formalplanscan’treplaceintuition andcreativity. Formalplans,routine jobs(routine planningefforts)
andorganizational formality,detailedplanningmayhampercreativity. Organizations oftensucceed
becauseofsomeone’sinnovation vision .

12. THE NATURE
AND
PURPOSE OF
PLANNING
Reported by: FELICIANO S. ABABON III
PART II:

13. NATURE OF
PLANNING

14. NATURE OF PLANNING
1.PLANNING ISGOAL-ORIENTED:
– Every planmustcontribute insomepositive waytowardsthe
accomplishmentof groupobjectives. Planninghasnomeaning
without beingrelated togoals.

15. NATURE OF PLANNING
2. PRIMACY OFPLANNING:
– Planningisthefirstofthemanagerialfunctions. Itprecedes all
theother managementfunctions.

16. NATURE OF PLANNING
3. PERVASIVENESS OFPLANNING:
– Planningisfoundatalllevels ofmanagement. Top
managementlooks afterstrategicplanning.

17. NATURE OF PLANNING
4. MIDDLE MANAGEMENT is in charge of administrative planning.
LOWER MANAGEMENT hastoconcentrate onoperational planning.

18. NATURE OF PLANNING
5. EFFICIENCY, ECONOMY AND ACCURACY:
– Efficiencyof planismeasuredbyitscontributiontothe
objectives aseconomically aspossible. Planningalsofocuses
onaccurateforecasts.

19. NATURE OF PLANNING
6. CO-ORDINATION:
– Planning co-ordinates thewhat, who,how, where andwhyof
planning.Withoutco-ordination ofallactivities, wecannot
haveunited efforts.

20. NATURE OF PLANNING
7.LIMITINGFACTORS:
– Aplannermustrecognizethelimitingfactors(money,
manpoweretc.) andformulate plans inthelightofthese
criticalfactors.

21. NATURE OF PLANNING
8. FLEXIBILITY:
– Theprocess ofplanningshouldbeadaptabletochanging
environmental conditions.

22. NATURE OF PLANNING
9. PLANNING ISANINTELLECTUALPROCESS:
– Thequalityofplanningwillvaryaccordingtothequalityofthe
mindofthemanager.

23. PURPOSE OF
PLANNING

24. PURPOSE OF PLANNING
1.TO MANAGE BYOBJECTIVES:
All the activities of an organization are designed to achieve certain
specified objectives. However, planning makes the objectives more
concretebyfocusing attentiononthem.

25. PURPOSE OF PLANNING
2. TOOFFSET UNCERTAINTY ANDCHANGE:
Future is always full of uncertainties and changes. Planning foresees
thefuture andmakesthe necessary provisions forit.

26. PURPOSE OF PLANNING
3. TOSECURE ECONOMY INOPERATION:
Planning involves, the selection of most profitable course of action
thatwould lead tothebest result atthe minimumcosts.

27. PURPOSE OF PLANNING
4. TO HELPINCO-ORDINATION:
Co-ordination is, indeed, the essence of management, the planning is
the base of it. Without planning it is not possible to co-ordinate the
different activities of anorganization.

28. PURPOSE OF PLANNING
5. TOMAKE CONTROL EFFECTIVE:
The controlling function of management relates to the comparison of
the planned performance with the actual performance. In the
absence of plans, a management will have no standards for
controlling other's performance.

29. PURPOSE OF PLANNING
6. TO INCREASE ORGANIZATIONALEFFECTIVENESS:
Mere efficiency in the organization is not important; it should also
lead to productivity and effectiveness. Planning enables the manager
to measure the organizational effectiveness in the context of the
stated objectives andtakefurther actionsinthis direction.

30. FeaturesofPlanning:
 It is primary function of management
 It is an intellectual process
 Focuses on determining the objectives
 Involves choice and decision making
 It is a continuous process
 It is a pervasive function

31. IN SUMARRY:
NATURE OF PLANNING
• Itisgoal-oriented
• Italwayscomesfirst
• Itispervasive
• MiddleManagementis foradministrative
planning.Lowermanagementisfor
operational planning
• Efficient,EconomicandAccurate
• Wellcoordinated
• Flexible
• ItisanIntellectualprocess
PURPOSE OF PLANNING
• Tomanagebyobjectives
• Tooffsetuncertaintyandchange
• Tosecureeconomyinoperation
• Tohelpincoordination
• Tomakecontroleffective
• Toincreaseorganizational effectiveness

32. END OF REPORT
THANK YOU!
Resources: https://www.brainkart.com/article/Nature-and-Purpose-of-Planning_7563/