"It You Have Planned Well, Half Of

You Work Is Done“

Management Functions Are – Planning,

Organizing, Staffing, Directing And
Controlling And All Are Required To
Achieve Objectives But Without Setting
Objectives There's Nothing To
Organize, Direct Or Control. Therefore
Every Organization Requires To
Specify What It Wants To Achieve;
Planning Is Related With This Very
Aspect.
 Definitions:

Gorge R. Jerry – "Planning is the selection and

relating of fact and making & using of
assumptions regarding the future in the
visualization and formalization of proposed
activities believed necessary to achieve deserved
result". Mc. Farland –

"Planning may be broadly defined as a concept of

executive action that embodies the skills of
anticipating, influencing and controlling the
nature and direction of change"

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• Characteristics or nature of planning :
• 1. Primary task of management
• 2. Intellectual process
• 3. Future oriented
• 4. Decision oriented
• 5. Goal oriented
• 6. Forecasting is the essence of planning
• 7. Pervasive function
• 8. Planning and action are twins of management
• 9. Planning is wider than decision making
• 10. Inter dependent activity
• 11. Continuous and dynamic activity
• 12. Planning is the basis of control
• 13. Planning follows a systematic and reutilized procedure.
• 14. It is participative in nature
• 15. Planning always has a dimension of time.
• 16. Planning also implies “managerial innovation” (Koontz and
Weihrich)

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• Need Importance and advantages of Planning
• 1. Basis of success
• 2. Keystone management function
• 3. To manage by objectives
• 4. To offset growing complexity of business
• 5. Better utilization of resources
• 6. To gain economy in operation
• 7. Establishes coordinated effort
• 8. Facilitates control
• 9. Coping with change
• 10. Improves competitive strength

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• Process of Planning

7
Approaches to Planning

• Proactive Approach
• Reactive Approach

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• 11. Creates forward looking attitude
• 12. Promotes order
• 13. Prevents hasty judgment and haphazard action
• 14. Stay on track
• 15. Managing crises
• 16. Providing motivation
• 17. Promotes growth and improvement
• 18. Encourages creativity
• 19. Facilitates decentralization
• 20. It provides alternative courses of action
• 21. Efficient methods and procedures of action can be
developed.
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 Types of Planning

1. Corporate 1.Strategic 1.Long Term

Planning Planning Planning

2. Functional 2. Operational 2. Short Term

Planning Planning Planning.

Coverage of Importance Time Period

Activities of Contents Involved

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Features of a Sound Plan

• Linked to Long Term Objective

• Direction for Action
• Consistent
• Feasible
• Simplicity
• Flexible

11
Limitations for Effective Planning

12
Principles of Planning

1. Principle of contributions to objectives

2. Principle of primacy of planning
3. Principle of efficiency of plans :
It means that the amount contribution of plans should exceed
the costs involved in their formulation and implementation.
4. Principle of planning premises :
Planning premises means the assumptions regarding
environment which are likely to affect the implementation of
plans. This Principle emphasizes the need for consistent
planning premises.
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5. Principle of limiting factor :
A limiting factor is one which creates problems in the way of
achieving predetermined objectives. This Principle states that
planner must recognize and solve the limiting factors in order to
formulate effective plans.

6. Principle of commitment

7. Principle of flexibility

8. Principle of navigational change:

This principle states that a manager must constantly monitor and
review the conditions affecting the plans and redraw the plans if
required by the changed conditions. 14
9. Principle of pervasiveness
10. Planning coordination
11. Principle of timing
12. Principle of participation/acceptance
13. Principle of competitive strategies
14. Principle of Alternatives

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• Mc. Farland – Defines objectives in quite broad term
"Objectives are goals, aims or purposes that organizations
wish to achieve over varying period of time".

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• Features of objectives are as follows:-

1. Each organisation or group has some objectives in fact they

are created basically for certain objectives.
2. Objectives may be broad or may be specifically mentioned.
Wide or narrow, Long term or short term. General objective are
translated into operative objectives to provide definite action.

3. Objectives have hierarchy Top level - broad object Dept level

- specific object Unit level - their own object

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• Role of objectives:-

• 1. Defining an Organisation

• 2. Directions for decision making

• 3. Performance Standards

• 5. Integrating organisation, group & Individual

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• TYPES OF OBJECTIVES

1. General Objective
• Survival
• Growth
• Economic Contribution
• Social Obligation
• Profit

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2. Specific Objectives

3. Objectives Based on organizational levels

• Mission Goals
• Strategic objectives
• Tactical Objectives
• Operational Objectives

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• 4.Time based objectives
• Short term
• Intermediate
• Long-term

• 5. Other Types
• Personal
• Organisational objectives
• Performance goals
• Group Goals

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22
• Heinz & Harold Koontz "MBO is a comprehensive managerial system that integrates many
key managerial activities in a systematic manner continuously directed towards the
effective and efficient achievement of organisational objectives."

• S.K. Chakravarty "MBO is result-centered, non-specialist operational managerial process

for the effective utilization of material, physical & human resources the organisation by
integrating the individual with the organisation & organization with environment".

• MBO is now used not only as a technique of setting objectives but also used as a planning,
motivation, performance appraisal and control technique.

• MBO is a process whereby both superior and subordinate managers jointly identify their
common goals, of their work unit (department) and define each employee’s major areas of
responsibility and goals with his active participation.
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• Characteristics of MBO

• 1. A philosophy of management
• 2. Goal oriented approach: It focuses on setting goals at every level of the
organization. In MBO, goal setting begins at the top management level and filters
down, one level at a time.
• 3. Common objectives and individual goals : MBO is the process of setting
objectives of the organization as well as the each individual’s goals.
• 4. Participation and involvement : MBO approach proposes the participation and
involvement of all people in goal setting.

• 5. An interactive approach: MBO is an interactive approach to goal setting.

Managers and subordinates both are actively involved in setting goals

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6. A comprehensive approach : It is a comprehensive approach. It considers both the
economic and human aspects of an organization.

7. A systems approach : It takes into account the internal as well as external

environmental factors.

10. Simple universal approach : The MBO approach to managing is logical, appeals to
common sense and enjoys wide spread popularity.
• ADVANTAGES OF MBO

1. Encourages result oriented philosophy

2. Clearer goals
3. Effective planning
4. Clarification organizational roles
5. Coordination

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• LIMITATIONS OF MBO

1. Failure to teach philosophy of MBO

2. Lack of guidelines
3. Inflexibility
4. Time consuming
5. Incomplete understanding
6. Difficulty of setting goals
7. Over use of quantitative goals
8. Dynamic & complex environment
9. Ignores relationship behavior

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