PLANNING

Planning is the first function

to be performed in the

management.

PLANNING DEFINITION’S

“Planning is a predetermined course of action to achieve a specific goal or aim”.

“Planning is a process of deciding beforehand, what, how, when & why things are to be done”.

PLANNING DEFINITION’S

Planning is an intellectual process which requires a manager to think before acting.

It governs survival, growth & prosperity of any organization in a competitive & ever changing environment.

IMPORTANCE OF PLANNING

Benefits of

planning

Making objectives

clear

Efficient utilization of resources

Reducing risks &

uncertainties

Keeping organization on the right

path

Facilitating decision making

Effective coordination

PLANNING COMPRISES A SET OF DEFINITE

CHARACTERISTICS

• Intellectual process: that requires cognitive ability, Brainstorming & mental stimulation.

• Focuses on objectives

• Pervades all managerial activities

PLANNING COMPRISES A SET OF DEFINITE

CHARACTERISTICS

• Selection process

• Directed towards improvement

• Flexible & continuous process

TYPES OF PLANNING

1) Strategic planning

2) Tactical planning

3) Purpose or mission

planning

STRATEGIC PLANNING

It involves deciding what

the major goals of the

entire organization will be

& what policies will guide

the organization in

pursuing these goals.

TACTICAL PLANNING

It involves deciding specifically how the resources of the organization will be used to help the organization achieve its strategic goals.

PURPOSE OR MISSION PLANNING

Identifies the basic functions or tasks of an enterprise.

Every kind of organized operation has its meaningful purpose or mission.

STEPS IN MANAGERIAL

PLANNING

1) Awareness of

opportunities & problems.

2) Collecting & analyzing

information

3) Determination of the

objectives

STEPS IN MANAGERIAL

PLANNING

4. Determining planning

premises & constraints.

5. Finding out the alternative

course of action.

6. Evaluation of an alternative

& selection

STEPS IN MANAGERIAL

PLANNING

7. Determining secondary

plans.

8. Securing participation of

employees.

9. Providing for follow-up &

future evaluation.

BARRIERS TO EFFECTIVE PLANNING

A. Cost

B. Rigid

C. Scope

D. External factors

E. Limited data

F. Individual’s resistance

MCKINSEY’S 7-S FRAMEWORK

The basic premise of the

model is that there are seven

internal aspects of an

organization that need to be

aligned if it is to be

successful.

MCKINSEY’S 7-S FRAMEWORK

MCKINSEY’S 7-S FRAMEWORK

Hard Elements

Strategy

Structure

Systems

Soft Elements

Shared Values

Skills

Style

Staff

MCKINSEY’S 7-S FRAMEWORK

1. Shared Value

The interconnecting center of McKinsey's

model is: Shared Values.

What does the organization stand for and what

it believes in.

Central beliefs and attitudes.

MCKINSEY’S 7-S FRAMEWORK

2. Strategy

Plans for the allocation of a firms scarce

resources, over time, to reach identified goals.

Environment, competition, customers.

3. Structure

The way the organization's units relate to each

other: centralized, functional divisions (top-

down); decentralized (the trend in larger

organizations); matrix, network, holding, etc.

MCKINSEY’S 7-S FRAMEWORK

4. System

The procedures, processes and routines that

characterize how important work is to be done:

financial systems; hiring, promotion and

performance appraisal systems; information

systems.

5.Staff

Numbers and types of personnel within the

organization.

MCKINSEY’S 7-S FRAMEWORK

6. Style

Cultural style of the organization and how key

managers behave in achieving the

organization’s goals. Management Styles.

7. Skill

Distinctive capabilities of personnel or of the

organization as a whole. Core Competences.

STRATEGIC PLANNING

Strategic Planning is:

analyzing the current &

expected future situation,

determine the direction of the

firm, &

develop means for achieving

the means.

STRATEGIC PLANNING PROCESS

Inputs

Enterprise profile

Orientation of top

management

Purpose & objectives

STRATEGIC PLANNING PROCESS

External environment

Internal environment

Alternative strategies

STRATEGIC PLANNING PROCESS

Evaluation & choice of

strategies

Medium & short range

planning, implementation &

control

Consistency & Contingency