Planning, types of planning & types of plan

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Planning is the formal technique Of Choosing an organization’s project and normal long time and quick time period objectives. Deciding approximately divisional, departmental and person goals.Allocating the assets to gain goals.Deciding the activities, tactics, procedures, applications and budgets to gain the ones goals.

TYPES OF PLANNING

(1)  STRATEGIC PLANNING 

(2) TACTICAL PLANNING

(3)  OPERATIONAL PLANNING

STRATEGIC PLANNING

A goal includes a baseline performance, a target performance, and a set date to reach the goal. An example strategic plan should include objectives. This is because goals form the basis of planning. In this example, the goal is to increase customer satisfaction from 82% to 90% by December 31st. Top level management also involved.

TACTICAL PLANNING 

A tactical plan  may be a  written outline of the specific actions you're going to take to address a problem or achieve a goal. It could list the tasks  that you're going to  do yourself,  and therefore the  tasks you'll assign to employees. Instance strategic choices incorporate item cost changes, work plans, departmental redesign, and comparable exercises. The effect of these kinds of choices is medium with respect to gamble to the association and effect on benefit.

OPERATIONAL PLANNING  

 Operational planning includes characterizing and framing the moves people will make to help the plans and goals of the chief supervisory group. A tasks plan is very definite, portraying the who, what, where, and when engaged with dealing with the everyday errands and low-level exercises of the business. This kind of plan upholds the strategic arrangement, which is to a greater extent a mid-level arrangement.

TYPES OF PLAN   

STRATEGIC PLAN : 

In this type of plan we have organizational wide long term and overall objective  goals.

  SPECIFIC PLANS:  

Clearly defined plans, leaving no room for clarification. For example, a manager decides to increase 20% sales in the next year.  

DIRECTIONAL PLANS:  

Flexible plans, that set out general guideline. Instead of deciding about 5% increase in profits, manager says to enhance productivity.  

SINGLE USE PLANS:  

Made for a particular unique situation or purpose. For example a manager or boss offered marriage proposal to her secretary. 

STANDING PLANS:  

Made for frequently occurring problems or situations. For example delay in paying the dues.  

PLANNING RELATED Terms Mission STATEMENT: Broad organizational goal, which justifies a organization’s reason of existence. 

VISION: 

 An organization’s fundamental aspirations and values usually focusing on future of the firm and appealing the hearts and minds of its members. 

GOALS OR OBJECTIVES: 

 Ends to which activities are aimed or what a firm is committed to. Different departments can have different plans. 

Real Objectives VS Stated Objectives Financial Objectives VS Strategic Objectives 

 STRATEGIES:  

A company’s long-term plans, or major policies or major courses of actions to achieve the goals.   Strategies furnish a framework for guiding thinking and actions.   

 POLICIES: 

Are made in the light of strategies. These are general statements or understandings that guide or channel decision making. Policies define an area within which a decision has to be made. 

PROCEDURES: 

 The manner in which certain activities may be accomplished to achieve the goals.RULES: Actions or non-actions allowing no discretion. These are called simplest type of plans. 

PROGRAMS: 

a company’s plan focusing on a particular activity, department or time frame. 

BUDGETS:  

Statements showing the expected expenses and possible sources of revenues or income, in numeric terms. 

STEPS OF PLANNING PROCESS

  Being Aware of opportunity Conducting SWOT (Strengths, Weaknesses, Opportunities and Threats) 

Setting Objectives or Goals Considering Planning Premises Identifying alternatives Comparing alternatives in the light of goals Choosing an Alternative Formulating Supportive Plans Numbering Plans by Budgets  

MBO: ( Management by objectives)

This is a management style presented by Peter F.  Drucker . It suggests a system in which objectives are jointly settled by management and employees, progress is periodically reviewed and rewards are given on the basis of performance. 

MBO consists of the following points Goals should be specific Decision making should be participative Explicit time period may be mentioned Performance Feedback should be conducted. 

MBO PROCESS 

 Decide Overall Objectives Decide about Divisional and Departmental goals Decide about individual goals Formulate Action plans Implement the Action plans evaluate   the Performance Take Corrective Decisions, Rewards or punishments   

ENVIRONMENTAL SCANNING COMPETITOR INTELLIGENCE FORECASTING 

BENCHMARKING SCHEDULING

 BUDGETING BREAKEVEN 

ANALYSIS ENVIRONMENTAL SCANNING 

To analyze, understand and anticipate the management environment and its impact and to plan accordingly. 

COMPETITOR INTELLIGENCE: 

 To have a vigilant eye on the strategies, planning and activities of competitors and their possible impact on the business.  

FORECASTING:

 Prediction of future Outcomes 

 Types OF FORECASTS      

        Revenue Forecasting  

Technological Forecasting Quantitative Forecasting  

Qualitative Forecasting  

  BENCHMARKING:  

An approach to study analyze and follow the footsteps of the top performers in the organizations to achieve high standards of superior performance.Example Xerox sent a team to Japan to study their systems. Ford 50 cars lair by lair. 

BENCHMARKING PROCESS    

          Formulating a benchmarking team Collection of data or study Analysis of data to see the differences and their reasons Implementing the Implementation Plan 

 SCHEDULING:  

A listing of necessary activities, their order of accomplishment, who is to do each, and time needed to complete them. 

Gantt 

Chart Load

 Chart PERT (Program evaluation & Review Technique) 

BUDGETING: 

 A numerical plan for allocating resources to specific activities. 

TYPES OF BUDGETS 

Revenue budget 

Expense budget

 Profit budget 

Cash budget 

Capital expenditure budget,  

Variable budget 

APPROACHES TO BUDGETING  

Traditional Budgeting: 

Based on previous records and details.Zero Base Budgeting: Starting from scratch. 

 BREAKEVEN  ANALYSIS 

 A technique to find out the point where total revenues equalize the total cost, to plan about the pricing of the things. 

CONTINGENCY PLANNING TECHNIQUES PROJECT MANAGEMENT   

SCENARIO PLANNING  

PROJECT MANAGEMENT:  

PROJECT: 

 An activity or set of activities undertaken in a given time period and for given purpose.  

 PROJECT MANAGEMENT:  

The task of evaluation, planning implementation and control of any project, according to allocated time, resources and specifications.  

 PROJECT MANAGEMENT PROCESS: 

 This consists of the following steps.          Defining the objectives Evaluate the project in the light of objectives 

 Identify activities and resources 

Establish Sequences Estimate time and budget

 for activities Determine project completion date Compare with objectives Determine additional resources required  

SCENARIO PLANNING 

 Scenario means a consistent view of what the future will be. In this context, scenario planning will be looking into possible future happenings against a particular decision, action and situation and developing possible strategies in contrast to various possibilities. For example, what will we do if X happened or Y happened or Z happened?