IntroductionManagerial activity begins with….

Planning has been the Thumb rule….

Decision making…

Process of fixing goals and finding ways to attain these goals

Develop confidence in managers

Meaning

Planning is the first managerial function to be performed in the process of management. It is concerned with deciding in advance what is to be done, when, where, how and by whom it is to be done. Thus, it is a predetermined course of action to achieve a specified aim or goal.

Definitions “Planning is thinking process, the organized foresight, the vision

based on facts and experience that is required for intelligent action.”

- Alfred Beatty

“Planning is essentially decision making since it involves choosing from among Alternatives”

- Koontz O’Donnell

“”Planning the selecting and relating of facts and making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve the desired results.”

-George R Tarry

A Careful Analysis of above Definitions:

It is concerned with future and its essence is looking ahead

it involves thinking and analysis of information it involves a predetermined course of actionit is concerned with the establishment of

objectives It is fundamentally a problem of choosing after

a careful study of alternative coursesIt involves decision making Its objectives is to achieve better resultsIt is continuous and integrated process

Nature of Planning

1. Focus on Objective

2. It is an intellectual process

3. Planning is selective process

4. Planning is pervasive

5. Planning is an integrated process

6. Planning is directed towards efficiency

7. Planning is flexible

8. First function

9. It is a decision making process

10.It is a continuous process

Objectives

1. Multiple in nature

2. Objectives have hierarchy

3. Objectives may be long range or short-range

4. Objectives are interdependent

5. Objectives either tangible or intangible

6. Objectives have a priority

7. Objectives sometimes may clash with each other

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Hierarchy of Objectives 1. Mission or Purpose

2. Overall Objective

3. Main Divisional objective

4. Main Departmental objective

5. Sectional Objective

6. Work Group Objective

7. Individual Objective

Planning Process

1. Awareness of Opportunities & problems

2. Collecting & analyzing information

3. Determination of objective

4. Determining Planning Premises and Constrains

5. Finding out the alternative courses of action

6. Evaluation of alternatives and selection

7. Determining Secondary plan

8. Securing participation of employees

9. Providing for follow-up and future evaluation

Significance of Planning

1. Planning offsets future uncertainty and change

2. It tackles increasing complexity in modern business

3. It helps in co-ordination

4. It helps in exercising effective control

5. It helps in proper utilization of resources

6. It facilitates unity of action

7. It helps in avoiding business failure

8. Improves competitive strength

9. Improves adaptability

10. Guides decision making

Components of Planning

1. Mission

2. Goal

3. Objectives

4. Policies

5. Procedure

6. Programs

7. Rules

8. Strategies

9. Budget

Planning Premises1. Internal and External Premises

2. Tangible and Intangible premises

3. Controllable an Non-controllable premises

Strategy Formulation

A strategy is a broad plan developed by an organization to take it from where it is to where it wants to be. A well-designed strategy will help an organization reach its maximum level of effectiveness in reaching its goals while constantly allowing it to monitor its environment to adapt the strategy as necessary. Strategy formulation is the process of developing the strategy.

Cont.Strategy formulation requires a series of steps performed in sequential order. The steps must be taken in order because they build upon one another. However, there are two processes that are continually performed throughout strategy formulation: 

Environmental Scanning and Continuous Implementation. Environmental scanning is simply the process of paying attention to the external environment for factors that may affect your organization's performance, which will need to be addressed in the strategy formulation process.

Strategy Formulation

1. Values assessment: Every organization has values, and the strategic plan should align with the organization's values. A value assessment should look into the personal values of the organization's members, organizational values, the organization's operating philosophy, culture and stakeholders.

2. Vision and mission formulation: Once you have a firm handle on organization's values, it's time to establish its vision and mission, which is the foundation upon which your strategy will be built.

Cont.

3. Strategy design involves four elements. First, you must identify the major lines of your organization.

4. Next, you will want to do a performance audit analysis, which is a close look at the company's strengths, weaknesses,external opportunities and threats. This is often referred to as a SWOT analysis.

Values• "Equal rights for all", • "Excellence deserves admiration", and • "People should be treated with respect and dignity" 

McDonald‘s vision is "To be the best quick service restaurant experience". Being the best means providing an outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

Mission  "Is to be our customer's first choice, when by comes to, top quality products, outstanding service / cleanness and great value for money ".