ppm unit 3 - planning

8/8/2019 PPM Unit 3 - Planning

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PLANNING

First managerial function.

Choosing the best out of differentalternatives.

Thinking in advance.

Predetermined course of action toachieve a specified goal.


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PLANNING

PLANNING

What is tobe done?

Who willdo it?

When it is tobe done?

How it is tobe done?


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PLANNING

Present position

Desirable position

GAP Filled byPlanning


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PLANNING

According to Koontz and ODonnell-

Planning is deciding in advance what to

do, how to do it, when to do it, & who

is to do it. Planning bridges the gap

from where we are to where we want

to go. It makes it possible for things tooccur which would not otherwise

happen.


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PLANNING

According to Fayol-

Planning is chalking out a plan of action,

i.e the result envisaged, the line of

action to be followed, the stages to go

through and methods to use.


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PLANNING

FEATURES

OF PLANNING

PRIMARY

FUNCTION

FORWARD

LOOKING

FLEXIBLE

ACTIVITY

INVOLVES

DECISION

MAKING

CONTINUOUS

PROCESSEFFICIENCY

OF

OPERATIONS

PERVASIVENESS

CONTRIBUTES

TO

OBJECTIVES

INTELLECTUAL

PROCESS


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IMPORTANCEOFPLANNING

Reduces uncertainty.

Optimum utilisation of resources.

Facilitates control.

Encourages innovation & creativity.

Gives competitive edge to enterprise.

Ensures better co-ordination & avoidsduplication of efforts.

Development of managers.


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THEPROCESSOFPLANNINGIDENTIFYNEED FOR

PLANNING

FINDINGALTERNATIVE

COURSES OF ACTION

COLLECTING & ANALYSING

INFORMATION

MEASURINGAND

CONTROLLINGPROGRESS

EVALUATION OF

ALTERNATIVES

SELECTINGACOURSE

OF ACTION

FORMULATION OF

DERIVATIVE PLANS


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LIMITATIONSOFPLANNING

Lack of accuracy.

Costly process.

Adverse effect on initiative. Delay in actions.

Limited flexibility.

Psychological barriers.

Limited practical value.

Human elements.


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COMPREHENSIVE PLANNING

Strategic Planning Long run plans

Taken care by top mgnt Necessary for the survival

and growth

(would be studied in detail)

Operational Planning

Short run plans

Taken care by lowerlevel mgner

Implementation of

decisions taken at

strategic level


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Strategy

Meaning : strategy give direction to theorganizational plans

REFERS TOA course of action

Selection of the course of action out of theavailable course in order the long run goals

As a means to an end


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Stoner and Wankel

A strategy creates a unified direction

for the organizational in terms of its

many objectives, and its guides thedeployment of the resources to move

the organization towards those

objectives


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Definition

According to Chandler, Strategy

is the determination of the basic long

term goals and objectives of anenterprise and the adoption of courses

of action and the allocation of resources

necessary to carry out these goals andobjectives.


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Levels of strategies

levels

Corporate level

Business Level

Functional Level


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Strategies at different levels.

(i) Corporate Level Strategy- At this level basic questions like-What kind of business should the company be engaged inand should the resources be allocated among thosebusinesses. At this level a strategy is made for the corporateunit as a whole. (different pdt lines)

(ii) Business Level Strategy- It is formulated by a businessmanager to oversee the interest in such way as toaccomplish its long term objectives.

(iii) Functional Level Strategy- These strategies are developed forthe functional areas of the organisation. Eg. Finance,Personnel, R&D etc.


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Levels of Strategy Making

(I) Corporate Level

Board Of Directors

Vice-PresidentFinance

Vice-PresidentMarketing

Vice-PresidentHuman Resources

Chief ExecutiveOfficer


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(II) Business Level

Corporate level

Business levelProductDivision A

ProductDivision B

ProductDivision C C

Business levelProductDivision A


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(III) Functional Level

Business

Level

Functional LevelFinanceManager

ProductionManager

MarketingManager

PersonnelManager


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Strategic Planning ProcessEnvironmental

ScanningOpportunities &

Threats

Organizational Analysis

Strengths andWeakness

Developing Strategic

Alternatives

Evaluation Of StrategicAlternatives

Formulation OfStrategy Or

Strategic Plan

Execution OfStrategic Plan

Determination OfMission Purpose

ppm unit 3 - planning

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