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Transcript of pm notes
8/2/2019 pm notes
http://slidepdf.com/reader/full/pm-notes 1/2
PlanningPlanning in organizationsand public policy is both the organizational process of creating and maintaining
a plan; and the psychological process of thinking about the activities required to create a desired goal on
some scale. As such, it is a fundamental property of intelligent behavior . This thought process is essential
to the creation and refinement of aplan, or integration of it with other plans, that is, itcombines forecasting of developments with the preparation of scenarios of how to react to them. An
important, albeit often ignored aspect of planning, is the relationship it holds
with forecasting. Forecasting can be described as predicting what the future will look like, whereas
planning predicts what the future should look like.[1]
The term is also used for describing the formal procedures used in such an endeavor, such as the
creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the
objectives to be met, and the strategy to be followed. Beyond this, planning has a different meaning
depending on the political or economic context in which it is used.
Two attitudes to planning need to be held in tension: on the one hand we need to be prepared for what
may lie ahead, which may mean contingencies and flexible processes. On the other hand, our future isshaped by consequences of our own planning and actions.
Overview
Planning is a process for accomplishing purposes. It is a blue print of business growth and a road map of
development. It helps in deciding objectives both in quantitative and qualitative terms. It is setting of goals
on the basis of objectives and keeping in the resources.
[edit]What should a plan be?
A plan should be a realistic view of the expectations. Depending upon the activities, a plan can be long
range, intermediate range or short range. It is the framework within which it must operate. For
management seeking external support, the plan is the most important document and key to growth.
Preparation of a comprehensive plan will not guarantee success, but lack of a sound plan will almost
certainly ensure failure.
Planning - a result-oriented process - can be summarized in 3 easy steps:
1. choosing a destination, 2. evaluating alternative routes, and 3. deciding the specific course of
your plan.[2]
[edit]Purpose of a plan
Just as no two organizations are alike, so also their plans. It is therefore important to prepare a plan
keeping in view the necessities of the enterprise. A plan is an important aspect of business. It serves
the following three critical functions:
Helps management to clarify, focus, and research their business's or project's development and
prospects.
Provides a considered and logical framework within which a business can develop and pursue
business strategies over the next three to five years.
Offers a benchmark against which actual performance can be measured and reviewed.
8/2/2019 pm notes
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[edit]Importance of the planning process
A plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities. Preparing
a satisfactory plan of the organization is essential. The planning know the business and that they
have thought through its development in terms of products, management, finances, and most
importantly, markets and competition.
Planning helps in forecasting the future, makes the future visible to some extent. It bridges between
where we are and where we want to go. Planning is looking ahead.
Objectives and policies
[edit]The objectives
The objectives are general parts of the planning process. They are the end-results towards which all
business activities are directed. They are needed in every aspect where performance and result directly
and vitally affect the survival and success of the firm. In other words, the objective of the firm justifies its
existence.
Newman and Summer stated that "For managerial purposes, it is useful to think of objectives as the
results we want to achieve. Objective covers firm's long-range plans specific departmental goals and
short-term individual assignment also".
[edit]The policies
Policies are specific guidelines and constraints for managerial thinking on decision-making and action.
Policies provide the framework within which decision-makers are expected to operate while making
organizational decisions. They are the basic guides to be consistent in decision-making.
[edit]Planning basics
[edit]Essentials of planning
Planning is not done off hand. It is prepared after careful and extensive research. For a comprehensive
business plan, management has to: Clearly define the target/goal in writing. It should be set by a person
having authority. The goal should be realistic, specific, acceptable to the organization, and easily
measurable. Identify all the main issues which need to be addressed. Review past performance. Decide
budgetary requirement. Focus on matters of strategic importance. What are requirements and how will
they be met? What will be the likely length of the plan and its structure? Identify shortcomings in the
concept and gaps. Strategies for implementation. Review periodically. Define strategies and activities.