MANAGEMENT 1 One manager, because of his authority or position in

the organization, may do more planning than

CHAPTER 3: PLANNING
another, or the planning of one manager may be
more basic and applicable to a larger portion of the
DEFINITION OF PLANNING business than that of another.
PLANNING is a logical and systematic approach of
formulating the objectives, programs, policies, 4. Planning for efficient organization
procedures, budgets, rules and regulations, and The efficiency of a plan is evaluated by the amount it
other types of plans. Planning is considered the most contributes to purpose and objectives as offset by
basic of all managerial functions (organizing, staffing, the expenses and other things required to formulate
directing, and controlling). Without this basic and implement it. A plan contributes to the
function, the other four functions of the manager attainment of objectives, but sometimes at too high
cannot be tackled efficiently and effectively. or unnecessarily high costs. Plans may also become
Therefore, a manager organizes, staffs, directs, and inefficient in the attainment of objectives by affecting
controls in order to guarantee the attainment of group satisfaction. The new president of a company
objectives and the other types of plans made. that was experiencing bankruptcy attempted quickly
to reorganize and cut expenses by wholesale and
THE NATURE OF PLANNING drastic lay-offs of key employees. The results are fear,
Four major factors summarize the essential nature of resentment and loss of morale affecting productivity
planning. These are: and thereby defeat his objective of eliminating losses
and making profits. Attempts to install management
1. Contribution to purpose and objectives evaluation and development program fail because of
Planning is required to facilitate accomplishment of group resentment of the method used, regardless of
business purposes and objectives. This statement is the basic effectiveness of the programs.
taken from the nature of organized business.

2. Planning as the first basic function MAJOR TYPES OF PLANS

Since managerial functions of organizing, staffing, A number of different types of management plans
directing, and controlling are designed to support the exist. For this purpose, certain types of plans have
accomplishment of business objectives, planning is Nbeen selected .
logically performed before the execution of all other
managerial functions. Besides, a plan must be
formulated to accomplish the objectives before any
OBJECTIVES OR GOALS
manager knows what kind of organization structure
Quite frequently, goals and objectives are used
and job description and qualifications are needed,
interchangeably. The intended goal prescribes
how to direct subordinates, and what kind of control
definite scope and suggests direction to maximize
technique is to be applied. Inevitably, all the
the efforts of a manager. It is also synonymous to
managerial functions must be planned if they are to
aim, purpose, goal and mission. Objectives are the
be effective and efficient.
prime parts of the plans in the definition, we have
stated that planning involved determination of
3. Planning as a function of all managers
desired future events. These results or events are
Planning is a function of all managers, although the
objective and also go by the name of goals, targets,
character and scope of planning will differ from one
and so on. An objective has to do with the direction
authority to another. The broader scope of planning
in which an individual or organization wants to move.
goes far in clarifying the issue on the part of some
It is an estimated result expected in the future.
students of management to distinguish between
Objectives are established at organizational,
policy making and administration or between the
departmental, or individual level.
“manager" and the "administrator" or "supervisor".
To train five technicians in a particular skill on a given
period, say in the next six months, can be an PROGRAM
objective of a foreman. Objectives are usually It is the actual course of action designed to carry out
expressed in quantifiable manner. the established objective. To improve the quality
level of a product, a company may institute a quality
MISSION awareness program . It is a comprehensive plan that
indicates use of different resources in an integrated
It is the purpose or reason for the existence of an
pattern and establishes a sequence of required
organization. The mission can be defined in terms of
actions and time schedules for each in order to
an organization's product/services or achieve stated objectives.
markets/customers. Marketing pharmaceutical Examples: Marketing Program , Personnel Program ,
products can be the mission of a drug manufacturing Financial Program, etc.
company. A program can be easily and systematically shown by
using a project schedule. Project scheduling refers to
LONG-RANGE AND SHORT-RANGE the identification and analysis of the activities from
the project planning stage up to the start of normal
OBJECTIVES
operations.
Long-range objectives generally go beyond the
current fiscal year of the organization. They must In determining the various activities of the project,
support and not conflict with the organizational assumption should be made in touching all aspects
mission. But they may be quite different from the of the study such as the plant site and location,
organizational building construction , etc. To concretize the
and still support it. sequence of the various activities, a Gantt Chart
should be used as a planning and control tool of
For instance, the organizational mission of a fast-food studying the project proposal. It was formulated in
restaurant might be to provide a rapid hot food 1917 by Henry L. Gantt, a noted pioneer in the field
service to a certain area of the city. One long-range of industrial management, as a device for controlling
objective might be to increase sales to a specific level the production of raw materials. It is now widely
used for a variety of purposes to suit performance
within the next four years. Obviously, this objective is
output and activities against a time requirement
quite different from the organizational mission; but it
still supports the mission. Short-range objectives
POLICIES
should be derived from an in-depth evaluation of the
These are basic guidelines for action . They
organization's long-range objectives. Such an
indicated what is permitted and what is not
evaluation should result in a listing of priorities.
permitted . Promoting people from within can be a
Then short-range objectives can be set to help personnel policy of a company. Policies are broad ,
achieved the long-range objectives. All levels within general guides for action which constrain or direct
the organization should set objectives of the objective attainment. In this light, policies channel
how management should order its affairs and its
organization based on the long-range objectives and
attitude toward major issues; they dictate the intent
short-range objectives of the firm. Objectives at any
of those who guide the organization . In other words,
level must be coordinated with and subordinated to,
policies define the universe from which future
the objectives of the next higher level. All objectives strategies and plans are derived.
are then synchronized and not working against each "It is the policy of the public relations department to
other. Objectives should be clear, concise, and answer in writing all written customer complaints" is
quantified when possible. an example of such a policy. Policy statements often
contain the words to ensure, to follow, to maintain,
to promote, to be, to accept and similar verbs.
Policies exist at all levels of an organization. A typical
organization has some policies that relate to every body in
the organization and some that relate only to certain parts
of the organization . A policy such as "this company will
always try to fill vacancies at all levels by promoting from reasonable prices, providing comfort and
within " would relate to everyone in the organization. enhancing the quality of life of society was the
PROCEDURES vision of Mr. Konosuke Matsushita, the founder
Procedures are series of related steps expressed of the electronics firm bearing his name.
in chronological order for a specific purpose.
Procedures and rules differ from policies only in STRATEGY
degree. It is the method of shaping a company's future
A procedure defines in step-by-step fashion the and involves determining the long-run direction
methods by and through which policies are of the organization. A company may have the
achieved . They outline precisely how a strategy to diversify into related businesses
recurring activity must be accomplished. within the next few years. From the above
Procedures allow little flexibility and deviation . classifications, we can see that objectives are
A company's policy maybe to accept all not the same as policies, rules, procedures,
customer returns submitted within one month mission, strategy, philosophy, and programs.
of purchase; company procedures would outline Although they are not the same, there are some
exactly how a return should be processed . Well relationship among them. The word strategy
established formal procedures are often known originated with the Greeks around 400 B.C. It
as standard operating procedures (SOPs). These pertained to the art and science of directing
are instructions as to how a particular thing military forces. A strategy outlines the basic
should be done. A set of procedures maybe steps and management intends to do to achieve
prescribed in operating a machine or handling its objectives.
employee grievances.

RULES BASIC STEPS IN BUSINESS PLANNING

Rules require specific and definite actions for a Business planning created through time as a
given situation. Rules leave little doubt about series of ideas is gradually developed. Effective
what is to be done. They permit no flexibility plans are not written in one sitting. Each part of
and deviation. Unlike procedures, rules do not the plan leads into the next. Each influences the
have to specify sequence, for example: "No other; all the parts are interdependent. The
smoking in the conference room" is a rule. following are the basic steps in business
These are very specific actions to be taken with planning:
respect to a situation. Wearing uniforms or
reporting to work at a particular time are some 1. Define the business idea.
examples. Budget A plan stated in financial Write a description of the business idea.
terms is called a budget. It is an estimate qf Get it into paper as concisely as possible. This is
income and expenditures for a future period. by far the most important and most difficult
The use of budget enables executives to part of the business plan. The more precise and
perform their management functions more specific this description, the easier the rest of
effectively since budget provides them with the the planning process.
proper guidance in matters of disbursement.
2. Establish goals and objectives.
There may be a wide range of goals or
PHILOSOPHY objectives that may be desired by the various
The values and beliefs an organization holds as units and elements of a company. Management
the guiding light is the company's philosophy. by objectives, commonly referred to as MBO,
These are usually passed on by the founder of can be a process for explicitly teaching the
the organization. Providing quality products at objectives of the organization. Applying
management by objectives involves
participation in a sharing of important
management functions by workers at all levels OTHER TYPES OF PLANS
within the organization. Generally, the approach Plans can be classified in a number of ways on
will involve the identification of goals for the basis of frequency of use and the time
individuals, for groups and for the entire horizon. Let us take a look at some specific
organization. Conversely, the goal sets for types of plans. Standing Plans These plans serve
individuals are subsets of the entire goal set for as guidelines to managerial action. Managerial
groups, which are themselves goal subsets of efficiency is enhanced because once the
the entire organization goals. Subordinates and decision is made, it stands without the necessity
superiors jointly determine and agree upon the of deliberation each time a similar situation
results they seek to achieve along with the arises. These plans bring consistency to the
standards that will be used to measure the operations. A bank granting loans for house
results. construction is an example. It does not need a
different plan to handle each loan. It uses one
3. Evaluate the ideas, goals, and objectives. standing plan that anticipated in advance
This is to determine whether or not a whether to approve or not any request for a
specific idea makes sense, whether or not it can loan. Standing plans are used where an activity
work, and whether or not it can fulfill the series occurs repeatedly.
of goals and objectives identified in the
preceding steps. Once the business idea and the SINGLE-USE PLANS
goals and objectives have been defined in These plans are designed for a specific purpose
writing, they can be compared to determine or period. The plan ceases to exist when the
where complements and gaps may exist. goals are achieved. One common single use plan
is the budget. A plan to set up a warehouse is
4. Forecast cash needs. another example of a single-use plan.
It indicates the cash investment
associated with different sets of alternatives. LONG-RANGE PLANS
These funding or investment requirements These are the strategic plans of the
include the specifications of need for capital, organization. To become a leader in its industry
equipment, other capital needs, and the may be a long-range plan for an organization. It
amount of working capital necessary. takes time to achieve this goal. Under this plan,
assumptions must be made about
5. Identify sources of funds. uncontrollable and controllable variables.
Funds are potentially available to business from Technological change is an uncontrollable
a wide variety of sources. These can possibly be variable, over which a manager may not have
taken from personal equity or borrowing from any control because it takes place in the
any banking institution, one's own funds, and external environment. A manager may have
what additional funds can be obtained from control over the product line of the
various outside sources. organization. The time span of long-range plans
cannot be stated specifically because
6. Write a business plan. circumstances vary from organization to
A completed business plan is a summary and organization. In practice they may range from 3
evaluation of the business idea. It is written as a to 5 years.
result of the planning process. It shows the
probability of success, the principles' ability to.
make it work, the sources and uses of funds,
and projected income flows and cash needs.
 These involve determining the major goals of
the entire organization and the policies to guide
INTERMEDIATE PLANS the achievement of these goals.
These plans follow once the long-range plans This occurs at higher levels and involves a longer
are formulated. Intermediate plans are made for period of time. All types of forecasts are needed
the realization of long-range goals. These plans for this type of planning.
usually cover a one to three-year period.
TACTICAL PLANS
SHORT-RANGE PLANS They deal with the determination of the short
These plans provide the guidelines for day -to - term-specific utilization of the resources of the
day actions in the organization . These plans organization in achieving its strategic goals. The
may cover up to a year. reliance for these plans is on past performance
and as to how an organization previously
MARKETING PLANS allocated its resources.
The common objectives of marketing plans are
to increase their present market share and FUNCTIONAL PLANS
develop new products. These objectives are In addition to being long-range or short-range,
converted into operational plans. plans are often classified by function or use. The
most frequently encountered types of
PRODUCTION PLANS functional plan are sales and marketing plans,
These focus on producing the desired amount of production plans, financial plans, and personnel
goods demanded at the market place. plans. Sales and marketing plans are for
Production planning involves routing, developing new products/services and setting
scheduling, and dispatching processes. Routing both present and future products/services.
determines the path for the flow of production . Production plans deal with producing the
Scheduling sets up a time-table. Dispatching desired product/services on a time schedule.
signals the flow of time and find reasons for
delays. DECISION MAKING
This is the process of choosing a specific
FINANCIAL PLANS procedure or course of action from among
They provide a quantitative basis for decision several possible alternatives. In the business
making and control. The financial data tells world, a great investment in time, economy,
managers how well they are doing, the need for effort, personnel, and materials may be involved
working capital, the need for expansion and the in making a decision. The extent to which these
sources of funds. things are involved, as well as the total effect of
their involvement, depend on the business level
at which the decision is made. Judgment is
MANPOWER PLANS
important in decision making. Decision making
These involve a systematic way of determining
can be determined by non-quantitative means,
the types of personnel needed in the long and
such as intuition, facts, experiences, and
short-range for an organization . Personnel of
opinions.
various qualities and quantities must be
recruited and made available at appropriate
Many decisions in management are also
times. To achieve this, forecasts are necessary as
determined by quantitative means such as
to the demand and supply of labor.
operations research, linear programming,
simulation, Monte Carlo, gaming, and program
STRATEGIC PLANS
evaluation review technique (PERT). A number
of sophisticated techniques are available which which the decision maker seeks scientific,
aid the decision making process. Some of these logical, or mathematical means. Observation,
techniques have already been discussed in the analysis, hypothesis formulation , and
chapters dealing with planning and controlling experimentation are the methods generally
functions. In this section, we will discuss some used in O R techniques.
other techniques used in the decision-making
process. Our discussions will cover only the 1. Queueing or Waiting-line Method
basic aspects of these techniques. This method uses mathematical techniques for
balancing waiting lines and services provided.
MARGINAL ANALYSIS When there is irregular demand, waiting lines
This tool is used in decision making to figure out occur and the manager must decide how to
how much more output will result if one more handle the situation. If people waiting in queues
variable (worker) is added. Samuelson defines a are not going to be provided quick service, they
marginal product as the extra product or output may go elsewhere.
added by one extra unit of that factor. While
other factors are being held constant. This 2. Linear Programming
technique is particularly useful for evaluating This technique is used in decisions involving the
alternatives in the decision making process. allocation of resource or limited resources to
Financial Analysis This is another tool in decision reach a particular objective such as, least cost,
making used for estimating the profitability of highest margin , and so on. When these
an investment, calculating the payback period, resources have several alternative uses, this
and analyzing cash inflows and outflows. method is used for solving simple, complex, and
Investment alternatives can be evaluated using routine problems. In order to apply this method,
a discounted peso analysis of cash inflows and the situation must involve two or more activities
outflows. competing for limited resources and all
relationships in the situation must be linear.
BREAK-EVEN ANALYSIS
This is another tool which enable a manager to 3. Game Theory
see the effects of alternatives available based on This involves selecting the best strategy, taking
price, fixed cost, and variable cost per unit. With into consideration one's actions and the action
this tool it is possible to determine what will be of one's competitors. Thus, it is a "conflict of
the breakeven point for a company as a whole interest" situation where one individual tries to
or any of its product. At breakeven point, total win.
revenue equals total cost and there is no profit. McDonald contends that the strategic situation
is the theory which lies in the instruction
RATIO ANALYSIS between two or more individuals, each of
It is an accounting tool used for the whose actions is based on an expectation
interpretation of accounting information. The concerning the actions of others over whom he
basic financial ratios compare costs and revenue has no control. When one individual wins, the
for a particular period . These ratios bring out a other losses. Minimizing the maximum loss
relationship between two financial aspects. (minimax) and maximizing the minimum gain
(maximini) are the two concepts used in the
OPERATIONS RESEARCH TECHNIQUES game theory.
Operations research involves the application of
quantitative methods to decision making. 4. Simulation
Operations Research (O R) has been defined by This technique involves the building of a model
Miller and Starr as "Applied Decision Theory in that represents a real or an existing system.
These models are useful in evaluating and higher the decision maker is in the organization,
selecting the best one. The blueprint of a the more complex and difficult the decision he
proposed building is an example of simulation. has to make. Also, the number of people
In recent years, computers are being widely affected by the decision increases at the level of
used in simulation techniques. Role playing or the decision maker. For decisions made at the
teaching concepts through case studies are strategic and tactical levels, each alternative will
some form- of simulation techniques. have avid proponents (and opponents). To a
much lesser extent, this is also true of
5. DECISION TREE operational level decisions. As a result, the
This is an interesting technique used in decision maker is constantly smoothing with
analyzing a decision. Through a graphic new insight and information. Important
illustration, the alternative solutions can be corporate decisions are seldom made on a
identified and probability estimates are whim .
assigned to these alternatives and pay-offs Decision makers are influenced by available
relating to alternatives can be determined. information, but they, are also influenced by
Under the decision to buy a new machine are corporate policy, tradition, various pressure
conditions where a good market exist and groups and peers.
where poor market conditions exist. This follows
also for the alternative of repairing the old
machine. The payoff under each of these THE DECISION MAKING PROCESS
conditions is shown at the end. Whether a deliberate action or not, people who
make information-based decisions go through a
THE DECISION MAKING ENVIRONMENT decision making process.
The business system model helps to place the The steps in the decision making process are to:
decision-making environment in its proper
perspective. 1. Set Objectives
Most companies have three levels of The existence of a problem implies the need for
management: operational, tactical, and a decision maker to make at least one decision,
strategic. and typically a series of decisions, to resolve a
problem . In this first step, the decision maker
• Strategic-level managers determine long-term sets the objectives for the decision.
strategies and set corporate objectives and
policy consistent with these objectives. 2. Identify Constraints
Constraints in some way limit the decision
• Tactical-level managers are charged with the maker's choices. Constraints could be defined
responsibility of implementing the objectives by legal, economic, or political considerations.
and policies set forth at the strategic level of Decision constraints are sometimes presented in
management. To do this, the manager identifies terms of desired specification or performance
specific tasks that need to be accomplished. standards.

• Operational-level managers complete specific 3. Identify Alternatives

tasks as directed by tactical-level managers. The decision making process involves making a
choice between two or more alternatives. In this
Everybody has problems, and since decisions step, the decision maker identifies alternative
are made to solve problems, everybody makes solutions that meet the constraints outlined in
decisions. Some are made with a casual nod of step 2. In most cases, the alternatives are
the head, others are gut-wrenching experiences chosen because they provided a solution to the
for the decision maker. As a rule of thumb, the
problem, but often one of the alternatives is to and present or current information is used to
do nothing. predict future events or conditions.

Some managers rely on their own intuition in

4.Gather Appropriate Information predicting the future events. They are able to do
The information requirements for a given this because of their experience on the job. But
decision vary considerably depending on the the complexity of environment makes it no
complexity and scope of the decision to be longer an effective way of forecasting. Since
made. During this step, the decision maker departures from historical trends are becoming
gathers information that may provide insight as frequent, it is getting difficult to forecast for two
to which alternative to choose. years or longer. The long-range planners must
accept this reality. In recent years, a number of
5. Evaluate Alternatives sophisticated techniques have been developed
In this step, the decision maker evaluates each for forecasting purposes. Although there are no
alternative. A decision can be rendered based universal forecasting methods, some commonly
on available information. used methods of forecasting are the survey
method , the trend method , and econometric
6.Choose the Most Acceptable Alternative method .
In this step, the manager examines the ranking The survey method involves probing the
of alternatives and selects the most acceptable customer or respondent through questionnaires
alternative, which is often the top-ranked or interviews. Usually, a sample group is chosen
alternative. On occasion, extending for this purpose. Some sophisticated sampling
circumstances caused managers to look past the techniques are available. The sample chosen
highest-ranking alternative and select a lower must be representative of the group whose
ranking alternative. Decisions, especially those opinions the organization is soliciting. Based on
made collectively by several managers, are the information obtained through surveys,
often the result of creativity. forecasts are made.
The trend method or time-series analysis is
PLANNING TECHNIQUES AND TOOLS another technique of forecasting. Under this
There are various quantitative and scientific method, the future is predicted by projected
techniques that are available to aid the manager trends using past data or information. This
in his planning process. Some of these are the method brings out a relationship between sales
following: and time.
ELTONM
1. Forecasting
This is an attempt to foretell or predict future 2. Break-even Analysis
trends, events, or conditions from known data Break-even charts are used for planning
and to prepare for the expected changes in purposes. The mechanics of break-even charts
business or industry. Many decisions are based are discussed in the chapter dealing with
on estimates of what is likely to happen in the control function. Almost every manager makes a
future. Such decisions are made almost daily by profit plan and break-even analysis is useful for
both businessmen and economists employed by developing it. In order to make profits, total cost
the government. These estimates of future must not exceed total revenue. Using the break-
economic conditions or trends, based on even charts, a breakeven point, that is, the point
thorough analysis of the past and present, are at which total cost equal total revenue, can be
called forecasts. Both short-term and long-term determined. Using these charts, a manager can
forecasts are used . Under this technique, past say whether the company can sell enough
products to breakeven and plan accordingly.
 today for an uncertain future. Events often do
3. Scheduling not turnout as we expect. Among the most
This is the term used for planning time for important reasons for ineffective planning are
various activities in an organization. A number the following:
of scheduling techniques are available, ranging
from simple to complex. Network analysis is a 1. Lack of real commitment in planning.
quantitative technique used for scheduling. Two Despite the avowed interest in planning, there is
well-known network analysis methods are often a lack or real commitment by managers
Program Evaluation Review Technique (PERT), from the top level down to the lowest level
and Critical Path Method (CPM). These supervisor. There is a natural tendency to let
techniques help to plan complicated and today 's problem push aside planning for
extensive projects in which co-ordination is tomorrow 's opportunities. It is almost certainly
essential for cases. Two basic concepts in these true that most people would rather fight fires,
two techniques are: events and activities, an meet crises or kill snake than plan . This is
event is an identifiable accomplishments that largely because such activities seem more
occurs at a definite point in time. Activities are important and more interesting and rapid-fire
the work required to complete the event. Events decision making, without having to think, is fun.
show the beginning and end of an activity. A This means that management needs a climate
network consists of a series of interconnected that forces people to plan.
events and activities. In using this network,
three types of timings are estimated for each 2. Interchanging planning studies with
activity, that is, the time between two circles plans.
(events). These timings are: optimistic time (the Nothing is planned unless it includes a decision
minimum time it could take); pessimistic time of some kind. Yet many organizations and
(the maximum time it could take); and the most people believe they have planning when all they
probable time. have are planning studies.

3. Failure to develop and Implement

4. Management by Objectives sound strategies.
Peter Drucker used this term in 1954 and As we found in the previous chapters, strategies
applied it to an approach to planning. Since are the kind of plans which give unified
then management by objectives (MBO ) has direction to the enterprise planning efforts.
drawn a great deal of attention among the Without a sound strategy, which is often the
academics and practitioners. MBO is an case, plans go in the wrong direction. Moreover,
approach to management designed to unless a strategy is implemented by an action
encourage initiative and prevent working at plan, it becomes only a statement of wishes and
cross-purposes, or indeed, for no purpose at all. hopes.
It is a way to help managers accomplish their
job within the framework of organization needs 4. Lack of meaningful objectives and goals.
and resources. In this approach, the boss and Planning can not be effective unless goals are
subordinates function as a team in setting clear. Like supporting plans, goals must be
objectives and accomplishing those objectives defined in the light of strengths and weaknesses
through cooperation. and the many internal and external
environment forces that may influence their
WHY MANAGERS FAIL IN PLANNING achievement.
There are many reasons why managers fail in
planning. The more obvious one is because 5. Tendency to underestimate the
planning requires commitments to be made Importance1 of planning premises.
If plans and decisions in an organizations are to unaware of how their jobs relate to others in an
be consistent; that is, to fit one another, they organization, and if they do not have clear
must be implemented if a system of planning is authority to make decisions.
to be complete.
12. Lack of adequate control techniques and
6. Failure to see the scope of plans. Information.
Some managers get so wrapped up in Since the task of managerial control is to follow
developing major and minor programs that they up plans and to assure that these are actually
neglect to see that there are other types of succeeding. Planning can hardly be very difficult
plans, missions or purposes, objectives or goals, but effective unless the people responsible for
strategies, policies, rules, procedures and these know how well they are working.
budget as well as programs. All must involve
analysis and decision making and must be
implemented if a system of planning is to be
completed.

7. Failure to see planning as a rational

process.
Planning is practical exercise in rationalization. It
requires clear goals, acknowledge of
alternatives, an ability to analyze alternatives in
the light of goals sought, information and a
desire to come up with the best possible
answer.

8. Too much reliance on experience.

Experience as has been indicated is likely to be a
dangerous teacher simply because what
happened in the past may not likely fit a future
situation.

9. Failure to use the principle of limiting

factor.
It will be recalled that this principle requires
managers to search out those factors that would
make the most problem situation, there are so
many variables that no one can solve for all of
them.

10. Lack of top management support.

Planning is not likely to be very effective if top
management does not believe in it, encourage
it, or make the necessary decisions that will
allow its subordinates to make their plans.

11. Lack of clear delegation.

It is obviously very difficult for people to plan if
they do not know what their jobs are, if they are