PLANNING

Content as per
CBSE Syllabus Planning- Concept, Features, Importance
& Limitation,
Planning Process,
Types of Plan,
Classifications of Plans.
 Meaning
Planning is Deciding in Advance What to do & How to do,
Planning bridges the gap between Where we are & Where we
want to go,
Involves setting Objectives,
Developing Appropriate Course of action.

Planning

(Present Position) (Future Position)

 Features
1. Planning focuses on achieving objectives :
Specific goals are set out in the Plans, Activities to Achieve Goals,
Contributes to achievement of Goals.

2. Planning is Primary function of Management :

Lay down the base for other functions,
Performed within the framework of plan drawn.

3. Planning is Pervasive :
Required at all level of management & Departments.

4. Planning is Continuous :
Prepared for Specific period of time, (Months, Quarter, Year)
At the end, New plan to be drawn on the basis of New Requriments &
Future Conditions.
5. Planning is Futuristic :
Meet Future Events Effectively to the Best advantage,
Forward looking function.

6. Planning involves Decision making :

Involves Choices from among Various alternative & activities,
Examination & evaluation of each alternative & choose most
appropriate one.

7. Planning is a Mental Exercise :

Logical & Systematic thinking,
Must be Orderly & Based on analysis of the facts & forecasts.
 Importance
1. Planning provides Direction :
Ensures Objectives are Clearly stated,
Act as a Guide for Deciding What action should be taken & in which direction,
2. Planning reduces the risk of uncertainity :
Look ahead & anticipate Changes,
Deal with changes & uncertain event.

3. Planning reduces overlapping & wasteful activities :

Coordinating the activities & efforts,
Useless & redundant activities are minimised,
Clarity in thought & action.
4. Planning promotes innovative ideas :
New ideas can take shape,
Most challenging activity,
It guides all future action leading to growth and prosperity .
5. Planning facilitates decision making :
Helps managers to make a choice from amongst various alternative
courses of action,
Setting targets & predicting future conditions.

6. Planning establishes standards for controlling :

Provides the goals or standards against which actual performance is
measured,
It is a prerequisite for controlling,
Provide the basis of control.
 Planning Planning does
leads to rigidity not gurantee success

Needs to be flexible to cope with changed Plans needs to be translated into action or it
circumstances, becomes meaningless,
Difficult to change pre-decided plans. The kind of complacency & false sense of
security may actually lead to failure.

Planning may not

work in a dynamic Planning is time
environment LIMITATIONS consuming process
Difficult to accurately assess future trends,
Competition in the market can also upset. Lot of time is wasted in listing & evaluating
Cannot forsee anything various alternatives.

Planning Planning
reduces creativity involve huge cost

Cost involves in terms of time & money,

Usually done by the top management,
Sometimes cost incurred > benefits derived
Employees stop giving suggestions & new ideas
More expenses in gathering information.
of doing work.
 PLANNING PROCESS
1. Setting objectives :
First & foremost step is setting objectives,
Objectives should be clearly stated for all units & Departments,
If end result is clear it becomes easier to work towards the goal.

2. Developing Premises :
Depend upon the assumptions & predictions regarding future,
Assumptions are base material upon which plans are drawn,
Assumptions should be same for all.

3. Identifying alternative cources of action :

There are many ways to achieve objectives,
All alternatives should be identified,
If project is important, then more alternatives should be generated &
thoroughly discussed amongst the members of the organisation.
4. Evaluating alternative cources :
Comparing all the available option with their pros & cons,
The positive & negative aspects of each proposal need to be evaluated in the
light of the objective.

5. Selecting an alternative :
This is real point of decision making,
The best plan has to be adopted & implemented,
Choosing one or Combination of two or three alternatives for achieving goal.

6. Implementing the plan :

Manager prepare main plans on paper & put them in action,
i.e, Doing work as per plan.

7. Follow up action :
Checking & keeping an eye to find whether plans are working successfully
or not.
 TYPES OF PLAN

Single - Use Plan Standing Plan

One time event or project, Used for activities that occur regularly overa period of
For non - recurring situation, time,
Includes budgets, programmes & projects, Ensure that internal operations of an organisation runs
They consist of details including name of employees smoothly,
who are responsible for doing the work & contributing. Enhances efficiency in routine decision making,
Modified from time-to-time to meet business
requirements,
Includes policies, methods rules & procedures.

These are the part of Operational Planning process.

 CLASSIFICATION OF PLANS
1. Objectives :
First step,
Desired future position management would like to reach,
The end result of activities,
Usually set by top level management,
Guide for overall business planning.
Measurable in quantitative terms + written statements within time

2. Strategy :
Comprehensive plan for accomplishing an organisational objective.
-It includes 3 Dimensions :
i. Determining long-term objectives,
ii. Adopting a particular course of actions,
iii. Allocating resources necessary to achieve the objectives.

Business environment needs to be considered.

3. Policy :
General statement that guides thinking or channelise energies towards a
particular direction,
General response to a particular problems or situations,
For all level & departments from major to minor policies,
Major policies - Customer, Clients, Competitors.
Minor Policies - Insiders, Employees, etc.

4. Procedures :
Routine steps on how to carry on activities,
Specified in a chronological order,
Generally meant for insiders to follow,
Policies & Procedures are interlinked with each other,
Procedures are steps to be carried out within a broad policy framework.
5. Method :
Prescribed way or manner in which task has to be performed,
Specifes how the step is to be performed,
Selection of proper method saves time, money, effort & increases efficiency.

6. Rules :
Specific statements that inform what is to be done,
Do not allow for any flexibility or direction,
Simplest type of plan,
No compromise or change unless a policy decision is taken.

7. Programm :
Detailed statement about a project all types of plan,
Include the entire gamut activities as well as the organisations policy's,
How it will contribute to the overall business plan,
The minutest details are worked out.
8. Budget :
Statement of expected results expressed in numerical terms,
Easy to compare actual figures with expected figures and take corrective
action,
It is a control device from which deviations can be taken care of,
It involves forecasting.