1. Planning

2. Requires decisions on ….. What should be done How it should be done Who will be responsible Where the action is to be taken Why is it done

3. Planning is the first step of management process concerned with the establishment of objectives and analysis of present limitations for attaining such goals

4. Advantages Increases the organization’s ability to adopt future eventualities Helps crystallize objectives Ensures a relatedness among decision Helps the company remain more competitive in its industry Reduces unnecessary pressures of immediacy Reduces mistakes and oversights Ensures a more productive use of resources Makes control easier Increases effectiveness of a manager Helps the organization progress in a manner considered most suitable

5. Limitations Effectiveness depends upon correctness of assumptions Planning is expensive Planning delays actions Encourages a false sense of security

6. Guidelines for effective planning: Involve top management only at key points in the planning process Involve line execs in developing the plans Do not look for the perfect answer Planning should provide realistic targets & alternatives ways to achieve them Plans should start on a small scale and e expanded only when the execs have learned the technique & have become convinced of their usefulness

7. Steps …. Crystallizing the opportunity Securing and analyzing necessary information Establishing planning promises and constraints Ascertaining alternative courses of action or plans Selecting the optimum plan Determining derivative plans Fixing timing of introduction Arranging future evaluation of effectiveness of the plan

8. Types of plans According to time dimension: Short term: Upto one year Medium Term: >1 yr but <5yrs Long term : >5yrs

9. Types of plans Objectives/goals Strategies & tactics Standards Budgets Policies Procedures Programmes Rules Methods

10. Goals /objectives End results to be achieved They give direction to activities Require creative thinking and foresight

11. Strategies and tactics Strategies are aimed at counteracting the actions of the opponents Tactics are immediate decisions based on the executive’s judgement and experience whilst facing an actual situation

12. Standards Measure of level of achievement Very helpful in evaluating deviations from the plan

13. Budgets Used as both- planning and control device May be expressed in units of product, finance etc

14. Policies General statements aimed at guiding thinking whilst making decisions Eg: “promotions should be from within the company or the existing staff”

15. Procedures Involves a selection and establishment of a logical series of tasks within the framework of predetermined policies and objectives

16. Programmes Programme integrates policies, procedures etc required for effecting a certain course of action

17. Rules Rules are related to procedures as they guide action but there Is no time sequence involved Eg: Procedure for handling mail may require a rule “all letters received should be replied to on the same day”

18. Methods: Prescribes specifically and in detail how a task is to be done Constitutes the best method of performing a task