2.  P lanning is an intellectual process, consicous determination of courses of action, the basing of decisions on purpose, facts and considered estimates.

3. 1. Essence of planning is looking ahead. It is always concerned with future. 2. Involves a predetermined course of action. 3. This action course is determined after a careful study of alternative courses. 4. It is a continuous a integrated process. 5. It always have a dimension of time. 6. Its main object is to achieve better results.

4. 1. Planning offsets future uncertainty and change. 2. Planning helps in management by objectives. 3. Helps in coordination. 4. Economy in operation. 5. Helps in control. 6. Helps in executive development.

5. 1. Determination of objectives 2. Establishment of planning premises-forecast of those business conditions under which a plan is to operate. 3. Determination of alternative courses 4. Evaluation of alternatives and selection of courses of action 5. Determination of derivative plans- sub plans or departmental plans 6. Timing and sequencing of operation 7. Securing participation of employees 8. Considering the strategy 9. Providing a follow up to the proposed course of action

6. 1. Should be based on clearly defined objectives 2. It must be simple 3. Should be rational, appropriate and comprehensive. 4. It should provide for a proper analysis and classification of actions. 5. Must be flexible 6. Must be balanced

7.  Standing plans  Single use plans

8. Objectives Single use plans Standing Plans PoliciesProcedure Methods Rules Programmes Budgets Products Strategies

9.  Standing Plans These are permanent plans. Are used again and again. Include procedures, methods and rules etc.

10.  Provide the basic foundation upon which the structure of plans are built.  To guide and unite the efforts of employees in a desired direction, the management must have its objectives.  The objectives must be defined in clear terms.  Objectives must be general, specific, short term or long term, tangible or intangible.

11. 1. General statements that guide decision making. 2. They define the boundaries within which decisions can be made by the subordinates. 3. They direct decisions toward the accomplishment of objectives.

12.  They indicate the specific manner in which a certain activity is to be performed.  Where policies lay down the broad area of action, the procedures determine the sequence of definite acts.

13.  Deal with the best way in which a particular task is to be performed.  Method is more detailed than a procedure.  A procedure shows us a series of steps to be taken, a method is only concerned with a single operation.

14.  Rules are specific statements of what may or may not be done.  Rules provide way for informing the organizational members exactly what the boundaries of acceptable behavior are.

15.  Are designed to accomplish specific objectives usually within a relatively short period.  Budgets  Programmes  Projects  Strategies

16.  It is a plan which carves the course for business activities for a future period to achieve the prescribed objective and to provide the desired profits for operation.  It may be stated in time, materials, money etc.

17.  It is a sequence of activities designed to implement policies and accomplish objectives.  They are developed under the umbrella of organizational goals.

18.  May be a specific programme.

19.  It is also a special kind of plan formulated basically to meet the challenge of special circumstances.  Choice of strategy depends on available resources, urgency of achieving an objective, external atmosphere etc.

21.  Objectives are generally referred to as purposes, missions, goals and targets.  The term “objectives” means any ultimate thing to be achieved as profitable growth of business enterprise.  Objectives determine the shape of future actions and events in the business.

22. 1. They bring unity of planning 2. Objectives are the effective means to decentralization of authority. 3. Objectives facilitate the coordination of workers, efforts and resource of the enterprise. 4. They motivate the individuals. They specify the purpose of each job and fit the individual purposes and goals into the overall company goals. 5. Objectives provide the basic standards for control by way of clarifying the expected results.

23. Classifying Objectives Reasonability and Consistency Areas of Objectives Realistic and Practical Balancing of Short range and long range objectives Change of Adjustments

24. Classifying Objectives Classifying Objectives into  Major Goals  Derivative Goals  Long Range goals  Short Range goals

25. Areas of Objectives According to Peter Drucker, there are 8 areas in which objectives have to be set  Market Standing  Innovation  Productivity  Physical and Financial resources  Profitability  Manager Performance and development  Worker’s Performance and Attitude  Public Responsibility

26.  Policies are specific guidelines and constraints for managerial thinking on decision making and action.  They provide the framework within which the decision makers are expected to operate while making organizational decisions.

27. 1. To ensure that there will be no deviation from planned course of action 2. To ensure consistency of action 3. To provide a guide for thinking future planning 4. To leave scope for interpretation

28. On the basis of sources On the basis of Functions On the basis of Level Originated Policies Appealed Policies External Policies Production Policy Financial Policy Credit Policy Marketing Policy Personnel Policy Basic Policies General policies Departmental Policies

29. Originated policies  Formulated by Top Managers  They are basic policies and have the support of organization authorities and subordinates can be asked to follow them strictly.

30. Appealed Policies  When a subordinate is doubtful whether he has sufficient authority to handle a situation, he may seek the verdict of a superior.  Superior’s verdict generates what is known as appealed policy which becomes wide to subordinates action in future.

31. External Policies  Such policies which are imposed upon business by some external agencies like trade unions, government or industry associations etc.

32. Functional Policies  Refer to the policies which are prepared for various functional areas of management. Production policy, product policy, financial plan, personnel policy, industrial relations policy for example.

33.  Policies according to organizational levels: divided into three policies 1. Basic policies to be used by the top managers 2. General policies to be used by the top managers. 3. Departmental policies to be used by foremen and group leaders.