Step 1: To establish objectives which are verifiable Step 2: To establish planning premises Step 3: To determine alternative course of action Step 4: To evaluate the alternatives and select the best Step 5: To formulate derivative plans Step 6: To secure co-operation and participation of all employees Step 7: To measure and control the progress through follow-up Steps in Planning
Steps in Planning …… 3 Step 1: To establish objectives which are verifiable Identify goals of the organization Internal(Financial position of company, human resources available, manufacturing facility, company image, etc.) and external environment(Government rules and regulations, Socio-economic condition of the society, competition level, suppliers reliability) of the organization has to be studied
Step 2: To establish planning premises Planning premises are assumptions of future market conditions which become the basis for current planning process. Planning premises usually relate to cost and availability of raw materials, labour, power, product demands, population trends, technology growth, government policies etc. 4 Steps in Planning….
Step 3: To determine alternative course of action 5 Search and list a ll p o ss ib l e a lt e rna t i v es i n order t o be compared and analytically evaluated. Step 4: To evaluate the alternatives and select the best Select most suitable and best course of action. Alternatives have to be compared and evaluated with respect to their expected contribution to organizational goals. Eval ua t i on and sele c ti o n i s often done with t h e h e lp of quantitative techniques and operations research. Steps in Planning….
Step 5: To formulate derivative plans Management has to formulate derivative plans or secondary plans to support the basic plan. Derivative plans are sub plans or departmental plans. 6 Steps in Planning….
Step 6 : T o s e cu r e c o - o p e r ation a n d par t i c ipation o f all employees 7 Involving employees in planning process enhances their co- operation and participation. Continuous suggestions, complaints and criticisms must be asked from the employees. Step 7: To measure and control the progress through follow-up Continuous evaluation of plans help in identifying recurring mistakes and avoiding them in future. Steps in Planning….
⦿ T op down ⦿ Bott o m up ⦿ Collabo r ativ e (mi x ed) Approaches to Planning
⦿ Also kno w n a s stepw i se design, brea k - down and in some cases used as a synonym of decomposition . ⦿ The to p - do w n appr o ac h r em a in s ext r em e ly popular in contemporary project management. ⦿ The phras e “to p - do w n ” m e an s th at al l the directions come from the top. Top Down Approach