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Planning
Pro. Mrunali Tikare
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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 theconsequences of decisions are unpredictable.
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What is Plan
A Plan:
Is a specific documented intention consisting
of an objective (end) and an action statement
(means).
States what, when, and howsomething is to
be done.
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Definition of Planning
The act of determining the organizations
goals and the means for achieving them.
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ADVANTAGES OF PLANNING
Good planning can produce
Provides direction
Reduces uncertaintyMinimizes waste and redundancy
Sets the standards for controlling
Focus on goals
Intensified effortPersistence of effort
Creation of strategies and tactics
Planning improves coordination and control.
Planning improves time management
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Planning Process
Planning
The process of setting objectives and
determining how to accomplish them.
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Identify Goals
Develop Planning
Premises
Determine
Alternative
Course of Action
Selection and
Implementation
Review and Revise
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Planning Process
Step 1. Define your objectives Know where you want togo; be specific enough to know you have arrived whenyou get there and how far off you are along the way.
Step 2. Determine current status vis--vis objectivesKnow where you stand in reaching the objectives;identify strengths that work in your favor andweaknesses that can hold you back.
Step 3. Develop premises regarding future conditionsand generate alternative scenarios for what mayhappen; identify for each scenario things that may helpor hinder progress toward your objectives.
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Planning Process
Step 4. Make a plan Choose the actionalternative most likely to accomplish yourobjectives; describe what must be done toimplement this course of action.
Step 5. Implement the plan and evaluateresults. Take action; measure progress
toward objectives as implementationproceeds; take corrective actions and reviseplan as needed
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Planning Premises
Planning Premises lay down the boundary
or limitations within which plans are to be
implemented.
For Planning Premisesyou need data on
the current status of the organization
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Types of Planning Premises
Internal v/s External data
Controllable v/s Uncontrollable - Conditions
Tangible v/s IntangibleTime , goodwill,
motivation
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Types of Plans
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Types of Plans
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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.
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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.
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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 foractivities performed repeatedly.
Ex. Policies, Procedure, Rules
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Types Of Planning
Contingency planningcreates back-up plans forwhen things go wrong.
Scenario planningcrafts plans for alternative futureconditions.
Benchmarkingidentifies best practices used byothers.
Staff plannersprovide special expertise in planning.
Participatory planningimproves implementationcapacities.
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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 forcompleting 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
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Planning Horizons
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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.
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The Basic Planning/Control Cycle
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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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