Planning Planning is deciding in advance what to do, how to do it, when to do it and who is to do itKoontz and ODonnell

Current status

1. Where we are now?3. Gap ?4.How to bridge the gap?Future image2. Where we want to go?

Goal orientedPrimary functionMental exerciseContinuous processInvolves choiceForward lookingFlexible All pervasiveIntegrated processIncludes efficiency and effectiveness dimensions

Features of planning:

Steps in planning processEstablishing objectivesDeveloping premisesEvaluating alternatives and selectionFormulating derivative plansSecuring co-operation and participationProviding for follow-up

Rigidity Costly and time consuming Employee resistanceFalse sense of securityManagerial deficienciesPlanning prevents innovationExternal limitationLimitations

Effective planning

Climate

Top management support

Participation

Communication

Integration

Monitoring

Short rangeLong rangeOperationalStrategicTacticalFormalInformalFunctionalCorporateProactive Reactive

Forms of planning

Types of plansStanding plans Single use plansObjectivesPolicies & strategiesProceduresMethodsRules ProgrammesSchedulesProjectsBudgets

Developed for activities that recur regularly over a period of timeStanding plans

Single use plansDeveloped to carry out a course of action that is not likely to be repeated in the future

Policies A basic statement that guides decision-making. It provides a standing answer to recurring questions.

Procedures Describe what action steps need to be taken in a chronological sequence, in a specific situation

Methods Organization 203Indicate the simplified and standardised Techniques to be employed (to find out best way of doing a piece of work) to carry out (one step of a procedure) a task

Rules Describes exactly how specific activities are to be carried out, leaving no scope for individual discretion and judgment.

Programmes An aggregate of several related action plans (goals, procedures, rules etc. ) that have been designed to accomplish a mission within a specified time period.

Schedule It is a kind of time table of work, specifying the date when a task is to begin and the time needed to complete each task

Projects It is a small programme

Budgets A numerised programme designed primarily to allocate the resources of an organisation

Policies, procedures, methods and rules : Distinguished Point ofdistinction Policies procedures methods rulesDefinition

Nature

RelationshipWith timeSequence

Guides to decision makingGuides to actionOne best way of doing thingsGovern behaviourIndicate the broad area of actionMore detailed.specify a route through the broad area of policyIt is one step of a procedure. Limited in scopeDefine what should and should not be doneProvide standing answer to recurring questions. Can be applied under different situations.Time sequenceIs indicatedConcerned with a given piece of work to be finished by an individual within a specific time periodSpecify no time sequence

Formulation

Discretion

Example Generally formulated at topFormulated at relatively low level of management. They are derived from policiesMethods are formulated after careful research,Experimentation and analysisRules are formulated by managers after finding out what is good or what is bad for an employee/organisationRequire judgment And interpretationWe encourage promotion from withinTell the subordinate exactly what to do in a particular situation, used only when we do not want people to use discretionTell the subordinate how one step of a procedure should be formulated,used only when we do not want people to use discretionRequire action or non action in a rigid or inflexible manner. There is no room for discretion or interpretation Promotion procedure may indicate the basis for promotion in the form of qualification, experience, etcWhat is the best way to measure the employees skill or competenceNo discrimination on the basis of caste, sex or religion

Strategy vs policyDeals with strategic decisions that govern the long term health of an enterprise. It is a comprehensive plan of action designed to meet certain specific goalsIt is a means of putting a policy into effect within certain time limits.Deals with those decisions which have not been encountered before in quite the same form, for which no predetermined and explicit set or ordered responses exist in the organisation and which are important in terms of the resources committed or the precedents st.Deals with crucial decisions whose implementation requires constant attention of top managementIt offers guidelines for managers to take appropriate decisionsIt is a general course of action with no defined time limits

It is a guide to action in areas of repetitive activity

Once policy decisions are formulated, these these can be delegated and implemented by others independently

Characteristics of an effective planningRelated to objectivesEasy to understandPreciseStable as well as flexibleBased on factsNumberThrough knowledge of internal as well as external factorsJust, fair, and equitableReasonableReview