Post on 29-May-2018
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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