The Nature and Characteristics of Planning

• Planning consists of deciding in advance what has to be done, when, how, and who has to do it, along with how the results should be evaluated.
• A plan is a preset course of action to realize a particular goal and objectives.
• Planning is an intellectual process described as thinking prior to doing.
• There is no such thing as a perfect plan; even excellent plans can be unsuccessful due to the unpredictable nature of the future.

The Nature of Planning

• Planning is a complex, comprehensive intellectual management process.
• Planning focuses on proper selection of goals and objectives and developing a course of action on the tasks and resources to be employed to achieve these goals and objectives.
• Planning is the initial and chief function of management.
• Other functions like organizing, staffing, directing, and controlling are dependent on planning.
• Planning is mainly essential for top-level executives but is carried out by all managers.

Characteristics of Planning

• Planning is the most basic management function, strongly interconnected with all other functions of management.
• Planning involves choosing a prudent course of action from among alternatives, requiring multiple steps to select the best future course of action.
• Planning is a dynamic process needing frequent revisions due to the changing nature of the business environment.
• In planning, any of the available alternatives may be selected but the best option is implemented based on certain assumptions.
• Planning is an all-encompassing management function present at all organization levels and departments.
• Planning is a sound planning process that recognizes how and when to tackle a problem that will lead to the attainment of goals and objectives.
• Planning helps in foreseeing uncertainties caused by changes in technology, preferences, regulations etc.
• Planning facilitates the appropriate utilization of organization resources.
• Planning guarantees the organization is in the best position to attain its goals and objectives, owing to improved efficiency.
• Planning ensures choosing one course of action yields the greatest outcome at a minimum cost.
• Planning ensures various departments work based with general plans of the organization, which creates harmony and prevents duplication of efforts and conflict.
• An excellent Plan encourages the delegation of authority.

Importance of Management

• Planning is the most important function of management at every level.
• Without planning, all business activities of the organization lose significance.
• The importance of planning is highlighted by the increasing size and complications of organizations.
• Objectives of the organization are described in understandable language to give all employees a direction.
• Planning prepares for uncertainty and projects likely changes to ensure proper activities are planned.
• Planning designs future activities to accomplish objectives to put a stop to disorder and suspicion.
• Planning chooses the best option, generating inventive ideas.
• Decision-making means discovering a variety of options and selecting the best based on the criteria laid down.
• Standards are established for controlling by informing people and departments with planning strategies.

Steps Involved in Planning

• Defining the current situation is the first step, involving understanding the business's present state before setting goals by examining internal capabilities and external factors.
• Establishing goals and objectives means the planning process is the establishment of planning goals and identifying definite objectives.
• In planning, a goal is the desired broad outcome, while an objective is the specific result, but planning may become faulty.
• Planning premises are assumptions about the expected future situations, internal factors (policies, resources), and external factors (political, social, technological factors).
• Determining alternative courses of action allows you to assess any situation, assess alternatives and develop them.
• It is necessary to evaluate alternatives by weighing factors involved.
• Selecting the best option from the identified alternatives is the decision-making point.
• Supporting plans are devised to sustain the central plan.
• Timing series of activities must be determined to give practical shape and form to the program.
• Regular Feedback is obligatory to ensure that the plan is working soundly and adjust the current plan or discontinue it.

Planning at the Top Level Management

• Goals, objectives, and action plans at lower and middle management must align with those at the top for planning to be successful.
• Top-level management includes the Board of Directors (BOD) and the Chief Executive Officer (CEO), also known as General Manager (GM), Managing Director (MD), or President.
• The Board of Directors represents the shareholders, and they select the CEO.
• Top-level managers focus on longer timeframes and plans for larger organizational units.
• Developing mission, objectives, and major policies are components of Top-level planning

Role of Top-Level Management

• Determines organizational objectives, policies, and plans.
• Assembles available resources.
• Undertakes thinking, planning, and decision-making tasks.
• Spends more time in planning and organizing.
• Prepares 5 to 20 year long-term plans.

Strategic Plans by Top Management

• A strategy is a plan of actions and resource distribution intended to achieve the vision.
• Designed for the entire organization, strategic plans align with the mission and vision of the company.
• Strategic plans are long-term approaches focus on customers positioning among competitors over 5 years.
• Top-level managers (CEOs, presidents) propose and implement strategic plans to steer the organization toward its desired future.

Planning at the Middle Level Management

• Middle level management includes departmental heads, branch managers, and junior executives (e.g., Finance Managers, Assistant Purchase Managers).
• This level of management transforms the top management broad goals into specific objectives.
• The Middle level management is selected by the Top Level Management.
• Middle-level managers act as agenda-setters, offering insights and issues for focus that they can transfer into the organization.

Tasks that the Middle level management emphasizes

• Gives recommendations or advice to the top level
• Implements top-level policies and plans
• Coordinates departmental activities
• Communicates information and policies between top and lower levels
• Prepares department plans for (1–5 years)
• Inspires/guides low-level managers toward the higher performance

Tactical Plans

• Tactical planning, by middle management, helps in the execution of strategy.
• Tactical plans define roles and responsibilities.
• Tactical plans define what,how,and who must proceed with tasks.
• Strategic plans are transformed into definite plans according to the area of the organization such a tactical f plans.
• Tactical plans focus on functionalities responsibilities so that completion is successful.
• Tactical plans usually span one year or less.

Planning at the Low Level Management

• Lower-level managers include foremen and supervisors, who are selected by the middle management.
• This is also referred to as Operative/Supervisory level or First Line of Management.
• First-level managers schedule work and assign work.

Activities that are involved at a low level

• Assigns employees tasks
• Guides and supervises employees on day-to-day activities
• Develops morale in the workers
• Maintains a link between workers and the middle level management
• Informs the workers about the decisions which are taken by the management
• Informs the management about the performance, difficulties, feelings, demands, etc., of the workers
• Ensures the quality and quantity of production
• Makes recommendations and suggestions
• Up channels employee problems

Operational Plans

• Operational plans are made by the managers at a line or lower level.
• Operational strategies specify procedures.
• Managers should focus on tasks that are detail driven.
• Objectives need to be specific for operations, reflecting on the current performance.

Planning Techniques and Tools

• With standardized techniques one accepts more confidence which is def ined.
• Well def ined methods will help the manager with tasks that easy and fast.

GANNT CHART

• A Gantt chart is a horizontal bar chart developed in 1917 by Henry L. Gantt to allow planning.
• A Gantt chart graphically presents the schedule of a plan and the real progress of a project.
• A Gantt chart uses categories for resources which are either late or advanced.
• The vertical axis represents the tasks that make up the project.
• The Horizontal bars are varying lengths representing the sequences,timing and time span

At a glance the Gantt chart allows to see

• What the various activities are
• When each activity begins and ends
• How long each activity is scheduled to last
• Where activities overlap with other activities, and by how much
• The start and end date of the whole project

MILESTONE CHART

• A Milestone Chart graphically embodies important events along the timescale of the project.
• Certain events include equipment deliveries, reviews, or approval dates.
• Milestone are drawn as project plans with beginning and end target dates to find if project is within timetable.

When crafting a Milestone chart consider

• Name the important dates, deadlines and deliverables of the project.
• Evaluate the tasks necessary to finish each milestone.
• Prioritize milestones based on dependencies; if there is none fit them in the project timeline.

CRITICAL PATH METHOD (CPM)

• In the 1950s, the Critical Path Method (CPM) was developed by DuPont.
• Critical path method is a mathematical way of planning and scheduling for programmed management and minimum use of resources.

Steps that can be summarized when applying the CPM

• Identify the mandatory tasks and list them down in order.
• Construct a diagram illustrating the relation of each task to the others.
• Name the critical and non-critical paths among tasks.
• Find out the estimated completion time for each task.

DECISION TREES

• Decision tree is a visualization of a possible decision under conditions of risk which permits a manager to make a diagram of outcome of different alternatives.
• It applies to study marketing, hiring for equipment etc.
• A decision node is a point where a choice must be made which extending from a decision node are decision branches.
• The alternatives must not be inclusive as a complete set.

PAYBACK ANALYSIS

• Payback analysis assists with equipment to be purchased.
• The factors a manager should consider are the warranty, life of car.
• Based on cost a manager should consider higher price and rental demands so that returns will pay off

SIMULATIONS

• Simulation is model building type that mimics existing situations.
• When manipulating through the models a simulator knows the alternatives to see future success

Simulations practical approaches

• A training simulation allows for practicing of tasks, such as software skills that can get effective work done.
• Simulation models of business processes are business practices that can lead to analyst improvement.
• Spreadsheets assist with the simulation of outcomes related to existing data which can be a predictor with a scatter line.
• Manipulating various data allows examine amounts and usage and see what goes or can be lost.

BENCHMARKING

• Benchmarking identifies, understands, and adapts exceptional practices.
• Management can look at the performance of other organizations relative to the companies benchmarks.

Types of benchmarking

• Best practices means companies can look at leading edges in the industry, which improves the organizations company
• Peer benchmarking is a guide that is for other business, and is useful for comparison.
• SWOT analysis identifies weaknesses and the climate to understand their climate.
• Benchmarking as a group where information can be provided for report