1. CHAPTER NO 2

2.  Everything in history which has been planned was done in a highly predictable manner  Whatever you do whether launching a new product, a company, career or etc all these when planned goes through the following 6 steps

3. 1. Establish Goal or Objective 2. Define limits 3. Develop options 4. Evaluate options 5. Choose the best option(S) 6. Implement or Recycle to a more specific level

4.  Define what you want to have happen before you build a plan to make it happen.  The first stage is to establish or make objectives and goals  Goals are more global and vast ideas  Objectives are more specific and precise  Objectives are measurable and specific  They are mean to an end

5.  Effective Goals are one that can be used successfully by a manager for planning.  Effective goals need to be specific, measurable and valid  Specific means that the goals details exactly what is to be accomplished  Measurable is that a manager can tell whether or not a goal Is achieved or not.  Valid means that the goal is actually something that needs to happen in order for the larger plan

6.  Limits are parameters or conditions  While defining limits you need to ask questions: 1. Time line 2. Money 3. Facilities and machinery availability 4. Technological capabilities to be tapped 5. Human resources to be used 6. Skill set you already have 7. Necessary resources 8. Factor affecting the progress towards the goals

7.  One needs to list the limits as well 1. Don’t overdo the limits, too many limits can reduce the options for creative thinking

8.  This is inductive(creative part of planning)  Come up with good list of options from which to choose to come up with a good plan  You have to come up with the adequate list of options for instance: a) It has been developed with enough thought that you have included several different options b) The differences between options should be more than just cosmetic

9.  Deductive (data gathering and analytical) part of planning process)  Here you will do analysis by looking at the pros and cons of each options  Collect maximum data on each option

10.  After evaluating in the forth step you now have clear view as to what should be chosen.  You should narrow down on all the options and alternatives and then weigh each option then  You will probably choose the option with calculated risk  And now it’s the time to put the choice into effect

11.  This step is also called EITHER/OR  If the decision required no further thought of great consequence, you can implement it  But if it does you need to supplment it with more lower level plans

12. BROAD OBJECTIVES MEDIUM OBJECTIVE S Specific Objective

13. 1. Strategic Plan means broad VS operational or Tactical Plans (Specific). 2. long Range plan (At least a year or more) VS Short Range (ten Secs to one year). 3. Standing Plans (such as policies rules and procedure) VS Single use plan(One time plan)

14. 1. ESTABLISH STANDARD 2. MEASURING PERFORMANCE 3. COMPARING THE PERFORMANCE TO THE STANDARDS AND EVALUATING WHETHER OR NOT THEY ARE BEING MET 4. ANALYZE THE CAUSE OF AND CORRECT THE DEVIATION FROM STANDARD

15.  Standards represent criteria for performance.  A standard acts as reference line or a basis of appraisal of actual performance.  Standards should be set precisely and preferable in quantitative terms.  Setting standard is closely linked and is and integral part of the planning process.  Standards are used or bench marks by which performance is measured in the control operations at the planning stage, planning is the basis of control All sorts of events require control

16.  Measurement of Performance after establishing the standards, the second step is to measure actual performance.  Management should not depend upon the guess that standards are being met measurement of performance against standards should ideally be done on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions

17.  Comparing Performance with Standards Appraisal of performance or comparing of actual performance with pre- determined standards is an important step in control process. Comparison is easy where standards have been set in quantitative terms as in production and marketing.  In other cases, where results are intangible and cannot be measured quantitatively direct personal observations, inspection and reports are few methods which can be used for evaluation.  The evaluation will reveal some deviations from the set standards. The evaluator should point out defect or deficiencies in performance and investigate the causes responsible for these.

18.  Taking Corrective Actions Managers should know exactly where in the assignment of individual or group duties, the corrective action must be applied.  Managers may correct deviations by redrawing their plans or by modifying their goals. Or they may correct deviations by exercising their organizing functions through reassignment or clarification of duties.  They may correct, also, by additional stapling or better selection and training of subordinates

19.  Self Controlling and closed-Loop e.g thermostat in an aircon, it means this has automated corrective system  Control system which has no automated corrective system are called Open Loop system.

20.  Tool: A tool is an aid to accomplish a task  Tool not properly designed will not be able to achieve a task  Tools are of 5 types 1. CONCEPTS 2. MODELS 3. PHYSICAL 4. INDUCTIVE 5. DEDUCTIVE

21. 1. CONCEPTS(are ways of things that provide a structure for analysis) 2. MODELS(are simplification of derstand reality 3. PHYSICAL (they are things such as computers, they help in understanding the concepts and the models 4. INDUCTIVE (they help us move from specific and general. They are also called creative aids 5. DEDUCTIVE( they are objective and analytical, moving us from general to specific.