Planning in management and entrepreneurship .pptx

planning in Management & Entrepreneur

1. Planning

2. Planning is the most basic function of management, it is referred to as deciding in advance as what to do, how to do, when to do and who has to do. Planning g is vital at all level of an organization, top level managers are concerned with long range planning involve 2-5 years. Middle level managers are concerned with medium range planning involving few months. Nature of planning indicates essential quality or characteristics of planning

3. It must contribute to accomplish purpose and objectives. It must be consider as parent exercise in all processes. It must spread through all management functions. It must be efficient in such a manner so as to achieve the designed goals at the least cost.

4. Importance of Planning Uncertainty and minimize risk Effective Control Focuses attention and concentration on objectives of the enterprise. Economic operation and leads to success Bridge between present and future

5. Purpose of Planning The purposes of planning are listed below To select from many available alternatives so as to achieve the objectives of the enterprise. To direct all other functions of management To set up the goals of enterprise in perspective within the environment To form the basis for budget To forecast the future to avoid uncertainty and change. To provide effective control

6. Types of Planning Strategic Planning Tactical Planning Operational Planning Contingency Planning

7. Strategic Planning It involves analyzing competitive opportunities and threats, as well as the strength and weakness of the organization. It’s a long term planning Done at top level management Focuses on long term goal

8. Tactical Planning It is intermediate range planning that designed to develop specific means to implement the strategic plan. Its an short term planning. Done at lower levels of management. It consists of use of facilities and resources.

9. Operational Planning It generally assumes the existence of organization-wide or subunit goals and objectives and specifies ways to achieve them. Operational planning is short range planning that is designed to develop specific action step that support the strategic and tactical plans. Contingency Planning Its an special planning used for situations when changes cannot be predicted.

10. Decision Making Planning is intellectual process, which requires a manger to think. Through planning manger of any organization can decide what to do, how to do, when to do. Hence decision making is an integral part of Types of decision making Pragmatic and non pragmatic Individual and Collective Minor and Major Strategic and Routine Simple and Complex Temporary and permanent

11. Steps in Decision Making

12. Steps in Planning and Planning Premises The main steps involved in planning are as fallows Being aware of opportunities – setting realistic objectives Establishing objectives Developing Planning premises - establish planning premises Internal and external premises- premises with organization examples are policies, forecasts availability of equipment External premises are outside the organization examples government policies business environment, Demand

13. Tangible and intangible premises- tangible are measurable premises for example population, investment and demand Intangible premises are those which cannot be quantitatively measurable environment, economic and technological change. Controllable and uncontrollable premises- some of the premises are controllable like, man power, input technology and financial investment. Some of the other premises like strikes, non availability of raw materials, change in govt polices, wars etc.

14. Determination of alternative course – identify some alternative courses of action. Evaluating the alternatives and selecting the best course of action-A desired and best suitable alternative is selected by comparative analysis with reference to cost and gain etc., Formulating Derivative plan - in order to complete the task the selected plan must be translated into programs like working plan Monitoring and controlling the plans - this is the last step in planning

15. Hierarchy of Plans

16. Generally plans arranged in a hierarchy with in organization it starts at top with objectives and goals of organization. Second level is strategies Strategies are two types namely single use plan and standing plan Action plan