Definition

Planning is anticipating (Earl Strong) Planning is deciding in advance what is to be done (Theo Haiman) Planning is the process of coping with uncertainty by formulating a future course of action to achieve specified result.(Kreitner) Planning is an intellectual process ,the conscious determination of courses of action .(Koontz o Donnell).

Planning can be defined..

Planning

is regarded as a process of making decision on what is to be done ,when and how

What actually planning involves.

Selecting Mission and objectives Actions to achieve them Decision making

Importance of planning
Planning determines the future destination of an organization Planning makes the activities of the employees meaningful . Planning economizes operation. Planning helps in reducing the risk of uncertainties

 Planning leads to discovery of new ideas and opportunities . Planning provides direction Planning facilitates efficient control Planning as a response of the management to cope with the changing environment .

Approaches to planning
Managers adopts various approaches to planning as.. o Top- down approach . o Bottom-up approach. o Composite approach. o Team approach .

Principles of planning
Principles of contribution to objectives Principle of primacy of planning Principle of planning premises Principle of strategy and policy framework

 Principle of limiting factor Principle of commitment Principle of flexibility Principle of navigational change

Sl no P1 P2

Principles Principles of contribution to objectives Principles of objectives

P3
P4 P5 P6 P7 P8 P9 P10

Principle of primacy of planning

Principle of efficiency of plans Principle of planning premises Principle of strategy and policy framework Principle of limiting factor Principle of commitment Principle of flexibility Principle of navigational change

The purpose and nature of planning

The structure of plans

The process of planning

Types of plan

A)On the basis of importance,scope ,coverage and time dimension

1. Corporate planning 2. Operational planning 3. Strategic planning 4. Long range planning

B) On the basis of situation and managerial decision

1.Single use plan------ a. Objectives b. Strategy c. Programme d. Budget 2. Standing plan ------- a. Policies b.Procedure c. Methods d. Rules

Planning Process
Being aware of opportunities Setting objectives Comparing current alternative in light of goal sought Choosing an alternative

Considering planning premises Identifying alternatives

Formulating supporting plan

Numberizing plans by making budgets

SWOT Analysis

Aim of SWOT Analysis?

To help decision makers share and compare ideas.

To bring a clearer common purpose and understanding of factors for success. To organize the important factors linked to success and failure in the business world. To analyze issues that have led to failure in the past.
To provide linearity to the decision making process allowing complex ideas to be presented systematically.

BCG Matrix

Industry Competition, and Competitor Analysis

Porters Five Forces Model

Threat of Threat of New New Entrants Entrants

Bargaining Power of Suppliers

Rivalry Among Competing Firms in Industry

Bargaining Power of Buyers

Threat of Substitute Products

Techniques used in planning :

M.B.O: o The credit of developing this technique goes to Peter Drucker in 1954. o It is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational resources.

M.B.O Cycle
To define the objectives of the organization Periodic evaluation &review

To formulate sub-objectives

Final review and appraisal of performance

Determination of individual targets