PLANNING IN AN

ORGANISATION……..

Submitted To: M/S Anuradha Dogra

Submitted By: Pradeep Kumar MBA – 1st Year

WHAT IS PLANING???

Planning in organizations is both the organizational process of creating and maintaining a plan and the psychological process of thinking about the activities required to create a desired goal. We people use planning in our day to day life. Planning determines the future course of action. It requires forecasting of future situation. The main function of planning is decision making. Planning is a pervasive and continuous managerial function. Planning is undertaken at every level of the organisation.

Contd…

STATUS

Current Status

T1 T2 TIME

Desired Status

GapPla

nning

Require

d

NATURE OF PLANNING… planning is a rational approach

Perception ofopportunities

Establishingobjectives

Planningpremises

Establishingsequenceof activities

Identification ofalternatives

Formulating ofSupporting plans Choice of

Alternative plans

Evaluation ofalternatives

PLANING

STEPS OF PLANNING…

The basic purpose of my presentation is to explain the process and importance of planning with formation of two different companies

PROCESS OF PLANNING…

Let’s suppose there are two different companies come into the market at same time:

COMPANY NAME - A FOODS PVT LTD

NATURE OF BUSSINESS - FMCG

TARGET MONEY - 35 LACS

MISSION - MEET THE DESIRE HUNGER.

VISION - MEETING THE VALUE OF MONEY.

HEADQUATER - NEW DELHI

NATURE OF PRODUCT - SNAX

B FOODS PVT LTD.

FMCG

32 LACS

MEET THE DESIRE HUNGER

MEETING THE VALUE OF MONEY

MUMBAI

SNAX

NOW WE USE PROCESS OF PLANNING STEP BY STEP:

1. SETTING OBJECTIVES AND GOALS:

EARNING PROFIT THROUGH CUSTOMER SATISFACTION

INCREASE THE MARKET SHARE TIMELY

MEETING THE VALUE OF MONEY

EARNING PROFIT

MAXIMIZING THE SALE

ACRUIRE A LARGE MARKET SHARE

MEETING THE VALUE OF MONEY

A FOODS PVT LTD. B FOODS PVT LTD.

2. PLANINING PREMISES : The planning premise is a set of assumptions made about the environment during a planning process.

3. IDENTIFICATION AND EVALUATION OF ALTERNATIVES: There can be different alternatives.

4. CHOOSE AN ALTERNATIVE: After evaluation next step is choosing best alternative.

5. FORMULATING OF SUITABLE PLAN: After choosing best alternatives we should make a suitable plan

6. ESTABLISH SEQUENCE OF ACTIVITIES: Plan is a Performa according to it we should make a sequence of activities to achieve our goal.

STATUS

TIME

Desired Status

Plan

ning

Requ

ired

STATUS OF BOTH COMPANIES AFTER A YEAR:

Desired StatusA

B

BOTH COMPANIES FOLLOW ALL STEPS OF PLANNING BUT AFTER THE FINANICNG YEAR RESULT WAS DIFFERENT FOR BOTH. A FOOD PVT LTD EARN A LOT OF PROFIT WHILE B FOODS PVT LTD COME TO FAILURE. ACTUALLY SUCCESS IS DOES NOT DEPEND ON RIGHT PROCESS ONLY BUT IT DEPENDS ON A MANAGER’S MENTALITY ALSO. HERE ARE SOME MISTAKES DONE BY B FOODS PVT LTD. :----

Mistake number 1: Stifling communication Unfortunately, manager stifle team members’ opinions which differ from his own. The results are quite predictable - loss of valuable input plus damage to team members’ buy-in.How to avoid this mistake:  Allow, in fact welcome, input from all. Ask questions to encourage participation.

Mistake number 2: Not involving employees beyond the planning team members

The manager don’t even think about asking employees (beyond the planning team) to help. This mistake guarantees that the organization will miss valuable input.

How to avoid this mistake:  •Providing thoughts (through interview or survey) on issues to discuss•Estimating resources required to accomplish strategies

Mistake number 3:  Failure to link the strategic plan to the budgeting process

Manager of B FOODS PVT LTD failed to allocate resources to their strategies.

How to avoid this mistake:

   Estimate required resources while developing your actionplans. Then use those estimates to request resources in your budgeting process.

Mistake number 4: Resistance to change

Some resist developing any strategy which calls for significant organizational change.

How to avoid this mistake:

when discussing a problem, ask your planning team to consider each of the following four choices:a) Is it a resource problem?b) Is it a people problem?c) Is it a process or a systems problem?d) Is it an organizational problem?

Mistake number 5: Putting the plan on the shelf and keeping it there

The manager of B FOODS PVT LTD simply assume that once they’ve developed their strategies, those strategies will simply happen - almost automatically. No way! As Peter Drucker wisely advised, “Nothing happens until we reduce strategy to work.”

How to avoid this mistake:

Conduct quarterly reviews of your strategic plan and more frequent reviews of your action plans. Thus, you’ll link your strategies to individuals’ work assignments.