itft - principle of management
DESCRIPTION
PlanningTRANSCRIPT
PLANNING “Well plan is half done”
Meaning
• Planning means looking ahead and chalking out future courses of action to be followed.
• It is a preparatory step.
• It is a systematic activity which determines when, how and who is going to perform a specific job.
• It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.
Principles of Managerial Planning • Plans should be based upon clearly defined objectives
and make use of all available information.
• Plans should consider factors in the environment which will help or hinder the organization in reaching its goal.
• Plans should be based on the existing organization and facilitate control in order to cross check performance with established standards.
• Plans should be precise, practical and simple to understand and operate.
• Plans must be flexible because if circumstances are changing, the initial plan must still be valid.
Nature & Purpose of Planning PLANNING is a process for accomplishing purpose.
• It is a blue print of business growth and a road map of development.
• It helps in deciding objectives both in quantitative and qualitative terms.
• It is setting of goals on the basis of objectives and keeping in view the resources.
• It predicts what the future should look like.
• Formal procedures used in such an endeavor, such as
• The creation of documents,
• Diagrams,
• Or meetings to discuss
• The important issues to be addressed,
• The objectives to be met,
• And the strategy to be followed.
Steps in Planning Function Planning function of management involves
following steps:-
• Establishment of objectives
• Establishment of Planning Premises
• Choice of alternative course of action
• Formulation of derivative plans
• Securing Co-operation
• Follow up/Appraisal of plans
Establishment of objectives
• Planning starts with the setting of goals and objectives to be achieved.
• Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.
• Objectives should be stated in a clear, precise and unambiguous language.
• As far as possible, objectives should be stated in quantitative terms. • For example, Number of men working, wages given,
units produced, etc.
Establishment of Planning Premises • Planning premises are the assumptions about the lively
shape of events in future.
• Determining where one tends to deviate from the actual plans and causes of such deviations.
• What obstacles are there in the way of business during the course of operations.
• Planning premises may be internal or external. Internal includes
• Capital investment policy,
• Management labour relations,
• Philosophy of management, etc.
• Whereas external includes
• Socio- economic, political and
• Economical changes.
Choice of alternative course of action • When forecast are available and premises are
established, a number of alternative course of actions have to be considered.
• For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization.
• After objective and scientific evaluation, the best alternative is chosen.
• The planners should take help of various quantitative techniques to judge the stability of an alternative.
Formulation of Derivative Plans
• Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
• These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. • For example, if profit maximization is the main
aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
Securing Co-operation
After the plans have been determined,
• It is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
• The purposes behind taking them into confidence are :- • Subordinates may feel motivated since they are
involved in decision making process. • The organization may be able to get valuable
suggestions and improvement in formulation as well as implementation of plans.
Follow up/Appraisal of plans
• After choosing a particular course of action, it is put into action.
• After the selected plan is implemented, it is important to appraise its effectiveness.
• This enables the management to correct deviations or modify the plan.
Types of Plans
Three major types of plans can help managers achieve their organization's goals:
• Operational
• Tactical, and
• Strategic
• Operational plans lead to the achievement of tactical plans, which in turn lead to the attainment of strategic plans.
• In addition to these three types of plans, managers should also develop a contingency plan in case their original plans fail.
Operational Plans
• The specific results expected from departments, work groups, and individuals are the operational goals.
• These goals are precise and measurable.
• For example- • “Process 150 sales applications each week” or
“Publish 20 books this quarter” are examples of operational goals.
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.
• Operational plans can be a single-use plan or an ongoing plan.
Tactical Plans
• A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level.
• Tactical plans are concerned with shorter time frames and narrower scopes than are strategic plans.
• These plans usually span one year or less because they are considered short-term goals.
• Long-term goals, on the other hand, can take several years or more to accomplish.
Strategic Plans
• A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind.
• Strategic plans look ahead over the next two, three, five, or even more years to move the organization from where it currently is to where it wants to be.
• Requiring multilevel involvement, these plans demand harmony among all levels of management within the organization.
• Top-level management develops the directional objectives for the entire organization, while
• Lower levels of management develop compatible objectives and plans to achieve them.
• Top management's strategic plan for the entire organization becomes the framework and sets dimensions for the lower level planning.
Strategic Plans cont……..
Contingency Plans
• Contingency planning involves identifying alternative courses of action that can be implemented if and when
• The original plan proves inadequate because of changing circumstances.
• Unexpected problems and events frequently occur.
• When they do, managers may need to change their plans.
Contingency Plans cont……
• Anticipating change during the planning process is best in case things don't go as expected.
• Management can then develop alternatives to the existing plan and ready them for use when and if circumstances make these alternatives appropriate.
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