PLANNING – I:Four Major Aspects of Planning, Types of Plans

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Introduction To Public AdministrationMGT111

LESSON 18

PLANNING I

At the end of the lecture students will be able to understand:

The importance & definition of Planning;

What is managerial planning and its importance;

Basic principles underlying planning and

Types of plans

Importance of Planning

Planning is the most important activity of an organization and of managers. Because without

planning organizations may not be able to achieve their goals and objective.

Definition

Planning is the French word `prevoyance', which means to look ahead. According to Pfiffner and

Presthus planning is "a rational process characterized of all human behaviour."

According to Dimock and Dimock "Planning is an organized attempt to anticipate and to make

rational arrangement for dealing with future problems by projecting trends."

According to Simon, Smithburg and Victor A. Thomson: "Planning is that activity that concern

itself with proposal for future, evaluation of alternative proposals and with method by which these

proposals may be achieved."

Planning is also defined as future course of action.

The resources have to be managed to achieve goals which exist in future point in time.

In all definition of planning, there is one common element i.e. "Future course of action".

Levels of Planning

Planning is done at different level; therefore its size and magnitude is different. Following are

different levels of plan:

National level is made at the country level.

Provincial level is made at the provincial level.

Organization level is made at organization level.

Department level is made of department level.

Unit level is made at unit level.

Personal level plan could be professional plan or private plan.

Four Major Aspects of Planning

The nature of planning can be understood by examining four aspects:

Its contribution to purpose and objectives

Its importance in managerial task

Its pervasiveness

The efficiency Vs. effectiveness of plans

The contribution of plan to purpose and objectives: Every plan must contribute to the

accomplishment of purpose of the organization. This concept derives from the nature of the

organized enterprise which exists for the accomplishment of the group purpose.

The importance of planning to the managerial tasks: Planning precedes all other managerial tasks.

(organizing, staffing leading, motivating, controlling, budgeting and evaluating) It is unique as it

involves setting of objectives.

Introduction To Public AdministrationMGT111

Plan as Foundation of Management

Figure 1

What kind of

organization

structure to have

Which helps us

to know?

What kind of people

we need and when

Plans

Which affect the

kind of

Objectives and how

leadership

to achieve them

How most effectively

to lead

To ensure

success of plan

By developing

standards of control

Figure 1 shows that plans sets out objectives, and then the kind of organization structure will be

determined that will have achieve those objectives. Then to achieve the plan objectives the manager should

select right people. After selection of right people then these must be effectively led. Finally the control

standards must be developed to determine if plan has achieved the objectives.

Relationship of Planning and Controlling

Figure 2

Controlling:

Implementation

Planning

Comparing plans

of Plan

Deviation

with result

Deviation

Corrective

action

Introduction To Public AdministrationMGT111

Figure 2 shows the relationship between planning and controlling. The relationship between

planning and controlling is inextricable, because the two support each other.

The Pervasiveness: Planning is a function of all managers. If managers are not allowed to plan to a

certain degree then they may not be able to function as manager. All managers plan- from chief

executive to the first level supervisor.

The efficiency vs. effectiveness of plans: A plan is said to be efficient if it achieves its purpose with

minimizing cost. It is the contribution of the plan to the objectives. E.G. If cost is higher than the

benefits, the plan is said to be inefficient. Effectiveness is the achievement of goals and objectives set

out in the plan.

Types of Plans

Plans are future course of action and these are varied according to the time frame. These are

classified as:

Purpose or Mission

Objectives or Goals

Strategies

Policies

Procedures

Rules

Programmes

Budgets

We will examine each separately.

1. Purpose or Mission

The mission or purpose identifies the basic task of the organization. Every organization should

have a purpose or mission. Example: The purpose of National Highway Authority is to design, build and

operate national highways. The purpose of courts is to interpret laws. So each organization has its purpose.

2. Objectives or Goals

Objectives or goals are ends towards which activity is aimed. These represent not only the end

point of planning but also end toward which organizing, staffing, leading and controlling are aimed. While,

the objectives are the basic plan of an organization, its department may have objectives. Which are more

specific and these are sometime called "targets". Example: Objectives of an organization is to make profits

by producing television sets. The objectives of the production department would be to produce 2000

television sets in a year of given design and quality at a given cost

3. Strategies

Strategies mean `grand plan' made in the light of what an opponent might do or not do. Strategy is

defined as determination of long term plan of an organization and following course of action and allocation

of resources necessary to achieve the goals

4. Policies

Policies are general statements or understanding that guide or channel thinking in decision making.

Not all policies are "statements"; they can be implied from the actions of managers. Policies define an area

within which decision is to be made and ensure that the decision will be consistent with and contribute to

objectives. Example: Policy of Privatization

5. Procedures

Procedures are plans that establish a required method of handling future activities. They are guides

to action, rather than to thinking and they spell out the exact manner in which activities are to be

accomplished. Example: Procedure of making of passport, how police should challan a traffic violator

6. Rules

Rules spell out specific action or non action, allowing no discretion. Rules are unlike procedures in

that they guide action without specifying time sequence. In fact a procedure is part of rule; a rule may or

may not be part of procedure. Example: Traffic Rules, Pension Rules

Introduction To Public AdministrationMGT111

Concepts:

Plan:

a document which delineates future course of action.

Pervasiveness of Plan:

existence of plan at all level of the organization.

Control:

establishing standards and measuring performance against it.

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