Planning - mission, philosophy ppt

Nursing Management Topic- Planning according to the B.Sc. Nursing IVth year Syllabus

1. UNIT- II PLANNING- MISSION, PHILOSOPHY, PRINCIPLES, ETC. PREPARED BY- DR. RAHUL SHARMA B.Sc. (N), M.Sc. (N), PH.D (N) ASSOCIATE PROFESSOR, JAIPUR NATIONAL UNIVERSITY, SEEDLING SCHOOL OF NURSING, JAIPUR

2. Mission of planning The mission of the organization is to provide benefits to its customers. Since the customer exists outside the organization, the mission must be defined from an external point of view. Mission always implies concern with the future and with this in mind, planning: 1 . Leads to success in achieving goals; 2. Provides meaning to effective use of available resources such as personnel and facilities in the organization ; 3. Helps to cope with situational crises; 4 . Ensures effective control leading to cost effectiveness and 5 . Helps to discover the need for change.

3. Philosophy of planning 1. Planning sets guidelines and constraints for the behaviour of the firm. 2. Planning requires flexibility, energy and specificity. It should be simple, realistic, a guide for action in reaching the goal, and must allow for adjustment as expected and unexpected events occur. 3. Planning is essential; a manager must be able to overcome barriers that impede planning. 4. Planning must be done by hierarchical order and must be congruent in its flow.

4. Principles of planning 1. Contribution to objectives: Every major and derivative plan should contribute positively towards the accomplishment of the enterprise’s objectives. 2. Efficiency of plans: The efficiency of a plan is measured by the amount it contributes to desired objectives minus the costs and other undesirable consequences involved in the formulation and operation of the plans. This principle stresses the economical use of individual efforts to achieve group goals. 3. Primacy of planning: This principle emphasizes that a manager can hardly perform other managerial functions without a road map of plans to guide him . 4. Planning premises: A coordinated structure of plans can be developed only when managers throughout the organization understand and agree to utilize consistent planning premises. Perhaps the main deficiency of planning arises from poorly structured plans.

5. Principles of planning 5. Policy framework: A consistent and effective framework of plans can be developed only if the basic policies that guide decisions are expressed clearly and are understood by the manager who prepares the plans. 6. Timing: When the plans are structured in a time frame to provide an appropriately limited, network of derivative and supporting programmes, these plans can contribute effectively and efficiently towards the attainment of the enterprise objectives. Both premises and policies are useless without proper timing. 7. Alternatives: In choosing from alternatives, the planner should focus primarily on those factors that are critical to the attainment of the desired goal. This will help in selecting the most favourable alternative. 8. Commitment: Logical planning should cover a time period that can ensure that the commitment involved in a decision can be fulfilled. This is necessary to make reasonably sure that commitments are met.

6. Principles of planning 9. Flexibility: This principle deals with the ability to change what is built into the plans and reduce the risk of loss due to unexpected events. However, the cost of flexibility should be weighed against the dangers of future commitments made. 10. Navigational change: The manager should periodically check on events and expectations and redraw plans to maintain a course towards the desired goal. Unless plans have in-built flexibility, navigational change is difficult or costly. But in-built flexibility should not be an excuse to refrain from periodic revision of plans, if circumstances so warrant. 11. Competitive strategies: While formulating plans, a manager should take into account the plans of rivals or competitors, and what they would do in a similar situation.

7. Objectives of planning Objectives are framed to ensure the success of an organization. Planning is not possible in the absence of objectives. Following are the objectives for management planning: 1.To bring about unity and uniformity in the working of an organization. 2.To achieve coordination in power and efforts of the employees working in an organization. 3.To direct human power towards collective interest. 4.To curtail the cost/expenses of an organization. 5.To bring about a certainty in the functions by formulating plans

8. Importance of planning 1. Planning is an important function of management; therefore, an organization’s success depends on good planning. 2. Planning eliminates or reduces the chances of uncertainty. 3. Planning avoids overlapping of activities. 4. Planning helps to set standards and targets. 5. Planning helps in coordinating activities. 6. Planning gives direction to an organization. 7. Planning eliminates duplication of efforts. 8. Planning concentrates resources on important services. 9. Planning improves communication and inter-personal relationships.

9. Importance of planning 10. Planning is looking ahead; determining goals, objectives, policies, procedures and methods and considering various other activities 11. Planning ensures the best utilization of resources and economy of performance. 12. Planning is a continuous process, affecting improvement in services and solving problems. 13. Planning ensures order and control. 14. Planning leads to effectiveness and efficiency. 15. Planning provides flexibility and makes provision for further growth and development. 16. Planning helps in decision making. 17. Planning reduces the cost of performance.

10. Components of planning 1. Objectives: Objectives comprise a basic plan, which determines the goals or end results of the projected action of an enterprise. By setting goals, objectives provide the foundation upon which the structure of a plan can be built. 2. Policies: Policies are written statements or oral understanding. Sometimes, they are general terms for governing actions in repetitive situations. Realization of objectives is made easy with the help of policies, as policies provide practical solutions to problem. 3. Procedures: Procedures indicate the specific manner in which a certain activity is to be performed. They are more definite and specific guides to action, but only for the fulfilment of objectives.

11. Components of planning 4. Programmes: Programmes join together different plans for implementing them in a complete and orderly course of action. Programmes are necessary for both repetitive (routine planning) and non-repetitive (creative planning) course of action. 5. Budgets: Budgets are plans continuing statements of expected results in numerical terms, that is, rupees, man-hours, product units and so forth.

12. Planning levels in management Planning may be classified into directional planning, administrative planning and operational planning. Directional planning It is often called policy planning and is concerned with the broad general direction of the programme, that is, setting the framework of intent and philosophy within which the programme will proceed, and relating the programme to the broad planning of the community in which the programme will function, e.g. the state level planning at the directorate or secretariat of states or union (centre). Administrative planning It is concerned with the overall implementation of the policies developed and mobilization and coordination of the personnel and material available in the administrative unit for the effectuation of the service. For example, the medical superintendents in major hospitals or district surgeons in district hospitals or medical superintendents in primary health centres are responsible for administrative planning.

13. Planning levels in management Operational planning It is concerned with the actual delivery of the service to the community. For example, nursing personnel of all levels plan to deliver proper service to the community either in hospital or community. Planning may be classified as long range and short range and also as strategic and operational. There are similar activities involved in long- and short-range planning and also in strategic and operational planning. Strategic planning Usually the strategic and long-range planning is undertaken by the top level, which involves following activities: 1. Providing detailed analysis of strengths, weaknesses, opportunities and threats (SWOT) of an organization’s both internal and external environments. 2. Developing philosophy and formulation of objectives. 3. Allocating resources on the basis of priority. 4. Evaluating activities to increase efficiency. 5. Providing proper direction to avoid duplication of services.

14. Planning levels in management Operational planning Usually this operational and short-range planning is undertaken by middle or supervisory level personnel. This involves: 1. Planning for a few months to a financial year. 2. Planning on budgeting details and provision of short-range goods; this should be achieved within the given period. 3. Extensional aspect of long-range plan can sometimes apply to our nursing situation. The need arises to budget time and related provisions for providing nursing care in accordance to the events and situation.

15. Characteristics and nature of planning The following are the important characteristics of planning 1. It focuses on objectives: A plan starts with the setting of objectives and then makes efforts to realize them by developing policies, procedures, strategies, etc. 2. It is an intellectual process: According to Koontz and O’Donnell, planning is an intellectual process involving mental exercise, foreseeing future developments, making forecasts and determining the best course of action. 3. It is a selective process: It involves the selection of the best course of action after making a careful analysis of various alternatives. It is concerned with decision making relating to (1) what is to be done, (2) how it is to be done, (3) when it is to be done and (4) by whom it is to be done. 4. It is pervasive: Planning covers all levels of an enterprise. While the top management is concerned with strategic planning, the middle and lower management are concerned with administrative planning and operational planning, respectively.

16. Characteristics and nature of planning 5 . It is an integrated process: Planning involves not only the determination of objectives but also the formulation of sound policies, programmes, procedures and strategies for the accomplishment of these objectives. It is the first of the managerial functions and facilitates other managerial functions like organizing, staffing, directing and controlling. 6. It is directed towards efficiency: The guiding principles of a good plan are maximum output and profit at minimum cost. George Terry has aptly stated that ‘planning is the foundation of the most successful action of an enterprise.’ 7. It is flexible: The process of planning should be adaptable to the changes taking place in the environment. Koontz and O’Donnell emphasize that ‘effective planning requires continual checking on events and forecasts and the redrawing of plans to maintain a course towards a designed goal.’ 8. It is the first function in the process of management: A manager must plan before he can possibly organize, staff, direct or control. Because planning sets all other functions into action, it can be seen as the most basic function of management. Without planning, other functions become a meaningless activity producing nothing but chaos.

17. Characteristics and nature of planning 9. It is a decision-making process: Decision making occurs at many points in the planning process. Therefore, planning features an important aspect called decision making. It can be defined as the process of picking out between different choices. This can be exemplified by giving an example: in the planning process for their organization, managers decide which goals to follow up on; whether they need to manufacture all parts in-house or buy some parts from outside ? 10. It is a continuous process: Koontz and O’Donnell appropriately observe this fact. Like a navigator constantly checks where his ship is smoothly sailing in the vast ocean, in the same way a manager should also constantly ascertain the progress of his plans. He must constantly keep tabs on the conditions, both within and outside the organization, to find out if changes are necessary in his plans.

18. Essentials of a good plan According to Urwick , the essentials of a good plan are as follows: 1. It should be based on a clearly defined objective. 2. It must be simple. 3. It should be rational and appropriate. 4. It should be comprehensive. 5. It should provide for a proper analysis and classification of actions. 6. It must be flexible. 7. It must be balanced. 8. It must use all available resources and opportunities to the utmost (maximum or extreme) before creating new authorities and new resources. 9. It should be free from social and psychological biases of the planners as well as of subordinates. 10. There should be proper coordination among short- and long-term plans.

19. Advantages of planning The following points emphasize the benefits of planning: 1. Offsets future uncertainty and change: A business concern has to work in an environment which is uncertain and ever changing. Planning helps the manager carve out the future course of action and this brings a higher degree of certainty and order into the organization, than would be present without planning. 2. Tackles increasing complexity in modern business: To run a modern business undertaking, there is need for a large number of people with different specializations and complex machines. This makes it necessary for the management to depend on planning to get a clear idea of what is to be done, when it is to be done, where it is to be done and how it is to be done.

20. Advantages of planning 3. Helps in coordination: Planning, through its defined objectives, well-publicized policies, programmes and procedures, helps the management in the coordination process. According to Koontz and O’Donnell, ‘plans are selected courses along which the management desires to coordinate group action.’ 4. Helps in exercising effective control: Planning involves determining in advance the work to be done, the person responsible for doing it, the time to be taken to do that work and the costs to be incurred. This makes it easy to compare the actual performance with the planned one. In case of deviations, steps may be taken to find out the reasons for such deviations. Thus, planning helps in exercising effective control.

21. Advantages of planning 5. Helps in the proper utilization of the company’s resources: As planning involves deciding in advance what is to be done, when, where, by whom it is to be done, etc., it is possible to properly utilize the company’s resources and to achieve its objectives in the best and most cost-effective manner. 6. Facilitates unity of action: When properly planned, policies, procedures and programmes are predetermined, and every decision and action should be within the framework of such policies, procedures and programmes. This facilitates unity of action and also avoids confusion or misunderstanding at any level.

22. Advantages of planning 7. Helps in avoiding business failures: As planning involves the selection of best objectives, unity of action, coordination of activities, economy in operation and offsetting of future uncertainty and change, there is a great possibility of avoiding business failures. 8. Focuses attention on the organization’s goals: Planning facilitates a manager to concentrate his attention on the organizational goals and activities. This makes it easier to enforce and align the resources of the organization in an efficient manner. The organization as a whole then becomes able to embrace similar goals and collaborates in accomplishing them. 9. Improves competitive strength: The enterprises that adopt planning will have a competitive edge over other enterprises which do not. This is because planning enables such enterprises to discover new opportunities and thereby shape their own future.

23. Advantages of planning 10. Improves adaptability: Planning helps the manager to foresee the challenges that may crop up during the process, and he/she may accordingly keep room for adaptability. 11. Guides decision making: The success of an organization depends to a great extent on the type of decisions that are made at the various levels. Decision making involves making a choice from various available alternatives after evaluating each of them. Planning targets, objectives and course of action provide managers with guidelines and criteria against which to evaluate alternatives and choose those which are the most suitable.

24. Limitations or disadvantages of planning 1. Forecasts: Planning is based on forecasts and if realizable data is not available for making forecasts, planning is sure to lose much of its value. 2. Rigidity: Planning implies strict adherence to predetermined policies, procedures and programmes. This restricts individual freedom, initiative and desire for creativity. 3. Time consuming: Planning is time consuming and may delay action in certain cases. But to make plans realistic, it is necessary that sufficient time be given to the planning process.

25. Limitations or disadvantages of planning 4. Costly: Planning is an expensive exercise as a lot of money has to be spent for preparing estimates, collecting information and facts for analysis, etc. 5. Influence of external factors: Sometimes, because of the influence of external factors like government control, natural calamities, break-out of war, changes in political and economic situations, etc., that are beyond the control of the planners, the effectiveness of planning becomes limited. 6. Limited scope for specific organizations: With quickly changing situations in organizations, the scope of planning is said to be restricted. It is asserted that for industries engaged in the publication of textbooks or producing fashionable articles, working on a daily basis is more economical than on a planned basis.

26. Limitations or disadvantages of planning 7. People’s resistance: Planning may sometimes generate resistance. In old established organizations, managers are often frustrated in instituting a new plan simply by the unwillingness or inability of workers to accept it. 8. Failure of planners: Sometimes, the persons involved in the planning process fail to formulate correct plans. Some of the reasons for this failure are lack of commitment to planning, failure to formulate sound strategies, lack of clearly defined objectives, tendency to overlook planning premises, lack of clarity on the scope of plans, lack of support from the top management, lack of effective control techniques, lack of delegation of authority, etc.

27. Classification of planning Planning is basically classified on the basis of (1) time, (2) managerial levels, (3) repetitiveness of the operations in the firm and (4) scope. 1. Time: Long range, medium range and short range. 2. Managerial level : Strategic plans, administrative plans and operational plans. 3. Repetitiveness of the operations: Standing plan and single-use plan. 4. Scope : Company or master plan and functional or departmental plan for each department, e.g. production, finance, marketing, human resources, etc.

28. Planning methods Depending on their nature and scope, plans can be broadly classified as follows A. Standing or repeated-use plans 1. Objectives 2. Policies 3. Procedures 4. Methods 5. Rules 6. Strategies B. Single-use plans 1. Programmes 2. Budgets

29. Factors influencing planning The following factors influence the planning. On the basis of stated objectives, an organization develops standing plans and single-use plans. Standing plans that are to be used over and over again lead to the development of policies, procedures, methods, rules and strategies. Single-use plans that are to be used in specific situations only produce programmes and budgets. Objectives Organizational objectives are the basis for developing a plan. Planning dimensions include the relationship between management and organizational objectives, individual versus organizational objectives, operational objectives and management objectives. This also throws light on strategic planning, decision-making processes and various types of plans and planning tools available to managers.

30. While laying down objectives, there are certain requirements that managers should always keep in mind: 1. Objectives must support one another. 2. Objectives must be precise and measurable. 3. Objectives must be clear. 4. Objectives should always remain valid. 5. Objectives should be result centred. 6. Objectives should encourage higher performance, yet be realistic. 7. Objectives must be balanced.

31. Advantages of objectives 1. Objectives are pathfinders for other types of plans such as policies, procedures, rules and regulations. 2. Objectives are the pillars of strong planning of the organization. 3. Objectives avoid haphazard actions and confusion in the accomplishment of purpose. 4. Objectives help to build coordination and individual development in the organization. 5. Objectives provide better controlling through standards against performance. 6. Objectives develop better communication systems in the organization.

32. Policies Policies provide the framework within which the decision makers are expected to operate. They are a guide to the thinking and action of subordinates for the purpose of achieving the objectives of the business successfully. According to George R. Terry, ‘Policy is a verbal, written or implied overall guide setting up boundaries that supply the general limits and directions in which managerial action will take place.’ Thus, policies are a guide to thinking and action of those who have to make decisions. Characteristics of a good policy 1. Policy should help in achieving the enterprise’s objectives. 2. It should provide only a broad outline and leave scope for interpretation by subordinates so that their initiatives are not hampered. 3. Policies should not be mutually contradictory and there should not be inconsistency between any two policies that may result in confusion and delay in action.

33. Characteristics of a good policy 4. Policies should be sound, logical and flexible, and should provide a guide for thinking in future planning and action. Further, they should provide limits within which decisions have to be made. 5. Policies should reflect the internal and external business environment. 6. Policies should be in writing and the language of the policies should be intelligible to the persons who are supposed to implement them and to those who are to be affected by them.

34. Guidelines for effective policy making 1. Policies as far as possible should be in writing. 2. They should be clearly understood by those who are supposed to implement them. 3. They should reflect the objectives of the organization. 4. Subordinates and top managers who are required to implement policies must participate in the formulation of policies. 5. Conditions change and policies must also change accordingly. Hence, a policy must strike a reasonable balance between stability and flexibility. 6. Different policies in the organization should back up one another and should not move in different directions. 7. Policies should not cause any kind of damage to the interests of society. 8. At regular time intervals, policies should be reviewed to ascertain if any modifications are necessary to change any aspect in it or completely give up the policy.

35. Procedures Objectives and policies do not state the ways and means through which they are to be accomplished and put into effect. Hence, there is a need for procedures. Procedures are clear-cut administrative specifications prescribing the time sequence for work to be done. They can be defined as plans ‘prescribing the exact chronological sequence of specific tasks required to perform designated work.’ Thus, procedures tell how a particular activity is to be carried out. Important features of procedures 1. They are a guide to action. 2. They are generally meant for repetitive work so that some steps are followed every time that activity is accomplished. This is the reason why ‘procedures’ are also called ‘repetitive use plans. 3. Procedures are established in keeping with the objectives, policies and resources position. 4. They are concerned with establishing the time sequence for work to be done

36. Methods Method specifies the way in which a particular step is to be performed. Procedure details the various steps to be taken to perform a particular task. Method is more detailed than procedure. Rules A rule specifies what is to be done and what may not be done in a given situation. Rules do not leave any scope for decision making or judgment. They are to be enforced rigidly and a fine or penalty may be imposed for ignoring them. ‘No smoking’ is an example of a rule.

37. Strategy Strategy is a term which is normally used in the battlefield for planning a military movement, handling of troops, etc. In modern times, the word ‘strategy’ has found its way into the management field. In the context of a business concern, strategy indicates a specific program of action for achieving the organization’s objectives by employing the firm’s resources efficiently and economically. It involves preparing oneself for meeting unforeseen factors. It is also concerned with meeting the challenges posed by the policies and actions of other competitors in the market. Definitions and characteristics of strategy A.D. Chandler defines strategy as ‘the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources to carry out these goals.’ According to R.N. Anthony, “strategy is the process of defining the objectives of the organization, changes in objectives, the resources used to attain these objectives and the policies that are to govern the acquisition, use and disposition of these resources.”

38. The above definitions reveal the following important characteristics of strategy: 1. It provides guidelines to the enterprise for thinking and action. 2. It involves finding out a judicious combination of human and other resources to achieve the objectives of the organization. 3. Its formulation involves taking into consideration external environment (opportunities and challenges) and internal environment (the organization’s resources and capabilities). 4. As strategy depends on both external and internal factors that are not static, it has to be adjusted to the changed circumstances. Hence, strategy is not static but dynamic. 5. Because of the importance of strategy to the business concern, it is formulated by the top management and not delegated downward in the organization.

39. Conclusion Planning is a familiar day-to-day activity. A plan is a projected course of action. The planning process is a critical element of management. It must be learned by the nurse manager because it will not happen by accident. Planning is that function of a manager in which he decides in advance what he will do. It is a decision-making process of a special kind; its essence is futurity. The responsibility for overall planning is vested in the highest level of administrative authority. Planning consists of several individual plans or components and parts that bind together the structure of operations.  

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