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Planning

Pro. Mrunali Tikare

Coping with Uncertainty


Three Types of Uncertainty
State uncertainty: occurs when the environment, or a portion of the environment, is considered unstable. Effect uncertainty: occurs when impacts of environmental change are unpredictable. Response uncertainty: arises when the consequences of decisions are unpredictable.

What is Plan
A Plan:
Is a specific documented intention consisting of an objective (end) and an action statement (means).
States what, when, and how something is to be done.

Definition of Planning
The act of determining the organizations goals and the means for achieving them.

ADVANTAGES OF PLANNING
Good planning can produce
Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling Focus on goals Intensified effort Persistence of effort Creation of strategies and tactics Planning improves coordination and control. Planning improves time management

Planning Process
Planning
The process of setting objectives and determining how to accomplish them.

Identify Goals

Develop Planning Premises

Determine Alternative Course of Action

Selection and Implementation

Review and Revise

Planning Process
Step 1. Define your objectives Know where you want to go; be specific enough to know you have arrived when you get there and how far off you are along the way. Step 2. Determine current status vis--vis objectives Know where you stand in reaching the objectives; identify strengths that work in your favor and weaknesses that can hold you back.

Step 3. Develop premises regarding future conditions and generate alternative scenarios for what may happen; identify for each scenario things that may help or hinder progress toward your objectives.

Planning Process
Step 4. Make a plan Choose the action alternative most likely to accomplish your objectives; describe what must be done to implement this course of action. Step 5. Implement the plan and evaluate results. Take action; measure progress toward objectives as implementation proceeds; take corrective actions and revise plan as needed

Planning Premises
Planning Premises lay down the boundary or limitations within which plans are to be implemented. For Planning Premises you need data on the current status of the organization

Types of Planning Premises


Internal v/s External data Controllable v/s Uncontrollable - Conditions Tangible v/s Intangible Time , goodwill, motivation

Types of Plans

Types of Plans

Types Of Plans
Short-range plans
usually cover a year or less.

Long-range Plans
Usually cover three years or more
Jaquess Findings on Long-Term Thinking Most people are comfortable with 3-month time spans. Some work well with a 1-year time span. Only the rare person can handle a 20-year time span.

Types of Plans
Specific Plans
Plans that are clearly defined and leave no room for interpretation

Directional Plans
Flexible plans that set out general guidelines, provide focus, yet allow discretion in implementation.

Types of Plans
Single-Use Plan
A one-time plan specifically designed to meet the need of a unique situation. Ex. Programmes, Budget, Schedule, Project, Methods

Standing Plans
Ongoing plans that provide guidance for activities performed repeatedly. Ex. Policies, Procedure, Rules

Types Of Planning
Contingency planning creates back-up plans for when things go wrong. Scenario planning crafts plans for alternative future conditions.

Benchmarking identifies best practices used by others.


Staff planners provide special expertise in planning. Participatory planning improves implementation capacities.

Components Of Plans
Policy communicates broad guidelines for making decisions Procedure defines specific actions to be taken in specific situations Project Plans specify activities, resources, and timetables for completing projects Budget plan that commits resources to projects or activities Zero-based Budget allocates resources as if each budget was brand new

Programme :
Comprehensive plan designed to implement polic

Planning Horizons

The Planning/Control Cycle


Planning sets in motion activities to accomplish the planned objectives. Control functions to direct and monitor activities for deviations from plans (i.e., attainment of objectives). Planning uses feedback from controls to improve/alter plans and implement corrective actions where necessary.

The Basic Planning/Control Cycle

Contemporary Issues in Planning


Criticisms of Planning
Planning may create rigidity. Plans cannot be developed for dynamic environments.

Formal plans cannot replace intuition and creativity.


Planning focuses managers attention on todays competition not tomorrows survival. Formal planning reinforces todays success, which may lead to tomorrows failure.

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