PLANNING IN MANAGEMENT

Jitin Kollamkudy

MANAGERIAL FUNCTIONS

• Planning

• Organizing

• Staffing

• Leading/Directing

• Controlling

PLANNING

Planning involves the determination of future course of action, that is why an action what is to done, how to de done and when to be done

“Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”

-Koontz and O'Donnell

IMPORTANCE OF PLANNING

• Planning provides directions

• Planning reduces the risks of uncertainty

• Planning reduces overlapping and wasteful activities

• Planning provides innovative ideas

• Planning facilitates decision making

• Planning establishes standards for controlling

STEPS IN PLANNING

• Being aware of opportunity

• Setting objectives or goals

• Considering planning premises

• Identifying alternatives

• Comparing alternatives in light of goals

• Choosing an alternative

• Formulating supporting plans

• Quantifying plans by making budgets

TYPES OF PLANS

• Objective:-Future destination or desirable state of affairs

• Strategy:-Course of action developed by relating strengths & weaknesses of an organization with opportunities & threats arising out of the changing environment.

• Programme:-Network of policies,procedures,rules& budgets designed to meet specific situations & all other needful actions required for implementing a given course of action.

• Budget:-Numerical expression of plan in terms of expected revenue & expenditure over a period of time.

• Policies:-General statement that guides decision making.

• Procedure:-Administrative action guide, setting chronological sequence for action.

• Method:-Detailed manner in which specific activity will be performed.

• Rules:-Directives for regulating & controlling the working behavior of employees.

STRATEGY

• Strategy can be defined as determination of basic long term goals and objectives of an enterprise and the adoption of course of action and allocation of resources necessary for carrying out these goals.

THE CHARACTERISTICS OF STRATEGY

• Strategy is a single use plan made to meet the challenge of a specific situation; when situation changes ,the strategy becomes outdated.

• It is a comprehensive & unified action plan drawn to seek specific objectives in changed situation.

STRATEGY FORMULATION

• Strategy formulation is an intellectual process that calls for use of analytical abilities, imagination and creativity on the part of managers.

THE MAIN STEPS

• Determining mission and objectives of the organization

• The organizational mission and objectives serve as the basis to develop a suitable strategy.

• SWOT Analysis

• SWOT is an acronym for Strengths , Weaknesses , Opportunities and Threats.

POLICY

• The term’ business policy’ is used interchangeably with ‘strategic management'. It is because business policy provides a broad framework within which the corporate plans are made.

POLICY FORMULATION

• Policies are formulated at the top level of the organization. But with regard to functional & operational policies, the co-operation of lower level managers is also sought.

• Identification of Need.

• Collection of Required Information.

• Discovery of Tentative Policy Proposal.

• Evaluation of an Alternative.

• Approval & Application of Policy.

• Policy Review& Appraisal.

EVALUATION OF STRATEGY

• Like all other plans, this strategy also needs periodic review & evaluation. This is done to ensure that it is implemented as effectively as possible.

• Internal Consistency.

• Consistency with Environment.

• Appropriateness of strategy in the Light of Available Resources.

• Acceptable Degree of Risk Involved in Strategy.

• Appropriateness of Time Horizons of Strategy.

• Workability of Strategy.

Thank You …