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Planning
Concept of PlanningNatureImportanceSteps
Types of Planning
Concept of Planning
Planning is the process that involve the determination of future course of action, that is why an action, what action, how to a action, and when to take a action
Terry-Planning is the selection and relation of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve the desiredobjectives.
Mcfarland-Planning may be broadly defined as a concept of executive action that
embodies the skills of anticipating, influencing, and controlling the nature and direction of change
Concept of Planning
Features & Nature of Planning
Process that determines the future course of actions
Future oriented requiring forecasting, correct forecasting of future situation leads to correct decision about future course of actions
Selecting the best among the alternativesObjective oriented and feasible
At all levels of management as all levels are involved with future course
Flexible as it is future oriented which is dynamic
Continuous managerial function involving complex processes ofPerceptionAnalysisConceptual thoughtCommunicationdecision and action
Features of Planning
A Rational Approach:For defining where one stands, where one wants to go in the future and how to reach there.
The concept denotes the choice of appropriate means of achieving objectives
Nature of Planning
Sta
tus
Current Status
T1 T2
Planning Required
Gap
Desired Status
Planning An Open System Approach:
Takes inputs from the environment, processes these and exports outputs to environmentthe approach indicates the identification of gap between current status and the desired status aDecides the action the bridge the gap , Actions are influenced by a variety of environment factors – PESTEL
Pervasiveness of PlanningPlanning exist at all level of management
Nature of Planning
Organization Plans
Division Plans
Dept Plans
Sectional Plans
Principles of Planning
Principles of Planning
Principle of contribution to objectives1
2 Principle of Primacy of planning: foremost function
3 Principle of pervasiveness of planning: at all levels
4 Principle of flexibility: adaptation to dynamic environment
5 Principle of periodicity: review the plans regularly and change
6 Principle of planning premises: based on assumptions
7 Principle of limited factors: consider facts like 5ms
Importance of Planning
Importance of planning If you fail to plan, you plan to fail!
Primacy ofPlanning
Functions such as organizing Staffing Directing Controlling are performed to achieve the objective set by the planning process
To offset uncertainty &
change
Change reflected in tangible & intangible formTangible-technology, market forceIntangible- attitude, values, culture
To focus Attention on
objectivesProvides direction to achieve
To help in coordination
Plans unifies interdepartmental activities and aligns dept plans to corporate plans
Importance of planning If you fail to plan, you plan to fail!
To help in control
Measurement of accomplishment of events against plans Correction of deviations to assure the achievements of predetermined objectives
To increase orgn
effectivenessAchievement of objectives within given resource
Facilitates decision making
Plans servers as criteria for evaluation of alternatives and choose the best one.
Importance of planning If you fail to plan, you plan to fail!
Plans
What kind of organizationStructure
What kind of people are required
How effectively to lead people
By furnishing standards of
control
Which helps to Know
Which affects the kind of direction
In order to assure success of plans
Necessary for
Process of Planning
Importance of planning If you fail to plan, you plan to fail!
Perception of Opportunities
Establishing Objectives
Planning Premises
Identification of alternatives
Establishing Sequence of activities
Formulating support plans
Choice of alternative
plans
Evaluation of alternatives
Planning Process
Perception of Opportunities
Preliminary look at possible opportunities
Understands SWOT
By studying the internal environment for strength and weakness and external environment for opportunities and strength.
Establishing Objectives
Organizational & Department Objectives are set considering the internal and external environment
Identification of key results area and setting of objectives
setting of departmental and unit level objectives based on organization objectives
Objectives provides direction to the organization
Planning Premises
planning Premises are assumptions on which the plans are based
Assumption of the external and internal environment
External Environment: PESTEL
Internal Environment: policies, Practices, organization
Forecasting plays a major role in planning
Nature of Planning premises: Different focus at different levelsTop Level: externally focused
Identification of alternativesCase: The Objective of the organization is to grow
The various alternative to achieve this objectives are
expansion in the same field of business
Diversification
Merger & Acquisition etc
Overall analysis of all the alternative objectives needs to be done in order to drop non feasible alternatives
preliminary criteria can be defined in several waysMinimum investment requiredMatching with the present business objectivescontrol by the government
Evaluation of alternatives
Feasible alternatives are taken for detailed study
Evaluation of the alternatives to understand its contribution to organizational
objectives in terms of resources and constraints
Choice of alternative plans
The best plan in terms of contribution to the business objectives in the light of
the resources and constraints is chosen
The planner needs to select more than one plan in event of changes. Such
plans are contingence plans
Formulating of Supporting Plans
Plan supporting the main plan
Derivative plans like
Planning for buying equipments
Buying raw materials
Recruitment plans
Training plans
Establishing sequences of activities
The sequence of the plan is decided so as to put the plan in action
Based on the plans the responsibility of implementation and its control is decided
Budget preparation and allocation is done
Types of Planning
Types of planningPlanning can be differentiated based on dimensions such as :
Long Term & Short TimeTime Period Involved 3
Proactive & ReactiveApproach adopted4
Formal & InformalDegree of formulation5
Strategic & Operational PlanningImportance of planning2
Corporate & functional PlanningCoverage of activities1
Types of PlanningDimensions
Barriers to effective Planning
Major Limitation of Planning
• PESTEL-CExternal inflexibilities4
• Time consuming • Expensive
Time & Cost5
• To formulate the correct plans • Lack of commitment• Lack of authority
Failure of people in planning6
• Psychological• Policy & Procedure• Capital investment
Internal Inflexibilities3
Encountered in long term planningProblem of Rapid Change2
• Future is dynamic• Margin of error
Difficulty of accurate planning1
Thank You
Rajeshwari Patil
Thank you