1. Principles of Management
Planning

2. Definition
According to Allen, “A plan is a trap laid to capture the future.”
According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to, where we want to go. It makes possible things to occur which would not otherwise occur”.
According to Alford and Beatt, “Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action.”
According to Abraham Lincoln “We must plan for the future, because people who stay in the present will remain in the past.”

3. Basic Managerial Functions
Planning is one of the primary functions of management
Setting of goals to be achieved and lines of action to be followed precedes the organization, direction, supervision and control. Hence planning precedes other functions of management.
Planning involves selecting objectives or goals and the course of actions to achieve them:
Provides the bridge to take us from where we are to where we want to go;
Is a rational approach to achieving pre-selected objectives - based on innovation, knowledge and purpose;
Decision making in choosing the best from alternative courses of action and is integral to planning;

5. Characteristics of Planning
Goal-oriented
Looks ahead
An intellectual process
Involves choice & decision making
Primary function of management
Continuous Process
Designed for efficiency
Planning is pervasive

6. This figure illustrates the levels of goals and plans in an organization: The planning process starts with a formal mission statement, that defines the basic purpose of the organization, especially for external audiences.
The mission is the basis for the strategic (company) level of goals and plans, which in turn shapes the tactical (divisional) level and the operational (departmental) level. Planning at each levels supports the other levels.
Proper planning sends FIVE important messages to internal and external audiences –
Legitimacy- What Organization stands for and reason for existence.
Source of Motivation and commitment- Reduces uncertainity and clarifies action
Guides to action- Focus on targets and direct employee efforts
Rationale for decisions- actions & decisions consistent with plans
Standard of performance- Goals define outcome and serve as performance criteria

8. Advantages Facilitates management by objectives
Minimizes uncertainties
Provides competitive edge and improves effectiveness
Encourages innovations / brain-storming
Facilitates control and co-ordination
Helps in achieving economies of scale / synergies

9. Disadvantages Internal Limitations External Limitations of Planning
Rigidity
Misdirected Planning
Time consuming
Probability in planning
False sense of security
Expensive
External Limitations of Planning
Political Climate
Labour Union
Technological changes-
Policies of competitors
Natural Calamities
Changes in demand and prices

11. Types Long Term & Short Term Formal & Informal Plans
Proactive & Reactive Plans
Strategic
A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission.
Operational Plans
An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans

12. Strategic Planning vs. Operational Planning
An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
Implementation
How
Means
Plans
Efficiency
Control
Short term / Long term
Formal / Informal
Strategic Planning
A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission.
Formulation
What, where
Ends
Vision
Effectiveness
risk
Long Term
Formal

13. No planning
Creates aimlessness and wandering
                                         

14. Planning Process

18. Planning in work environment
Case Study
Planning in work environment

19. The Conceptualisation
Investors like Harshad Mehta diverted Rs. 35 Bn from the bank system via Ready Forward Deals to the equity market which they manipulated.
The Government of India on the recommendation of Pherwani Committee in 1991 set up the National Stock Exchange of India - NSE.
This was a planned move by the MOF to put an end to the weaknesses of BSE like low transparency, bureaucracy and unreliable clearing and settlement systems, which led to the stock market crashed in April 1992.
The Government & the Ministry of Finance Strategically Planned the inception of a new generation Stock Exchange
Today the NSE is the largest stock exchange in India and the fourth largest in the world.
Proper planning, has led this achievement.

20. Operational / Functional Planning
20 yrs ago we started in Mumbai and then went nation wide electronically using technological advancements.
We also planned for segments like
Capital Market
Futures & Options
Currency Derivatives
All this required planning at different stages
By scouting the investment market potential – understanding of market dynamics and investor appetite
Laying a detailed procedure for implementation with timelines
Creating investor awareness and educating the common man on investing safely
Developed the necessary back-end system for implementation
Going live with the project !!
This entire process involved leading a group of people and monitoring the progress of the plan at different stages

21. Planning for Unforeseen Eventuality
As we grew the volumes increased, we needed a robust system and a Disaster Recovery (DR) site to protect us from any unforeseen circumstances
We planned for a DR site at Chennai.
We implemented a Business Continuity Management (BCM) plan and deployed elaborate DR solutions as a part of the BCM exercise in the form of a four-step plan
Business Impact Analysis
Strategy Selection
Detailed Plan development and plan maintenance
Testing, revisions and modifications

23. Long-term, Formal, Proactive, Operational Plan
A Case Study on
Long-term, Formal, Proactive, Operational Plan

24. The Planning Process Set Goal Gather / Analysis Data
A pharmaceutical company set a goal for itself to venture into the obesity drug market since it is one of the major lifestyle diseases.
The goal set, objective is established and a Mission is set !
Gather / Analysis Data
To do a market assessment it assigned the task to a research agency to gather and analysis the data on the target audience and market dynamics.
Guideline for Strategy formulation, evaluation of alternates, market reality, risk assessment
Basically preparing the ground for formulation the business plan

25. The Planning Process (contd.)
Create Plan
Based on the analysis the company formulated a phased Business Plan with proper implementation timelines to roll out the drug in the market
A rational approach to achieving pre-selected objectives - based on market analysis, knowledge and purpose
choosing the best option action from the alternates available by brain-storming through involvement and co-operation of the functional management team
A business plan formulated has the investment layout, the projected profit & loss for a period of 5-10 years keeping in mind the best and the worst case scenarios based on internal and external factors.
Implement & Monitoring the Plan
Using the Formulated Plan as a guideline company implemented the same and continuously monitored its progress until successful Market Launch of the Drug !

26. THANK YOU