PLANNING

HITHESH KUMAR

MEANING

Planning is the process of thinking about the activities required to achieve a desired goal. It is the first and foremost activity to achieve desired results. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills.

DEFINATION

According to Killen, “Planning is the process of deciding in advance whatis to be done, who is to do it, how it is to be done and when it is to be done.”

NATURE OF PLANNING

• Planning is an intellectual activity
• Planning involves selection among alternatives
• Planning is an forward-looking
• Planning is related to objectives
• Planning is the most basic of all management function
• Planning is a pervesive function of management

PROCESS OF PLANNING

• Setting Objectives-This is the primary step in the process of planning which specifies the objective of an organisation, i.e. what an organisation wants to achieve
• Developing Planning Premise – It is essentially focused on the future, and there are certain events which are expected to affect the policy formation. Such events are external in nature and affect the planning adversely if ignored.
• Identifying Alternative Courses of Action Once objectives are set, assumptions are made.Then the next step is to act upon them.There may be many ways to act and achieve objectives.All the alternative courses of action should identified.
• Evaluating Alternative Course of Action-In this step, the positive and negative aspects of each alternative need to be evaluated in the light of objectives to be achieved.Every alternative is evaluated in terms of lower cost, lower risks, and higher returns

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PROCESS OF PLANNING

• Selecting One Best Alternative-The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented.
• Implementing the Plan-This is the step where other managerial functions come into the picture.This step is concerned with “DOING WHAT IS REQUIRED”. In this step, managers communicate the plan to the employees clearly to convert the plans into action.
• Follow Up Action-Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.Monitoring of plans is very important to ensure that the plans are being implemented according to the schedule.

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DECISION MAKING

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.

PROCESS OF DECISION MAKING

• Identify the decision-You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.
• Gather relevant information-Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Some information is internal: you’ll seek it through a process of self-assessment. 
• Identify the alternatives-As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives.

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PROCESS OF DECISION MAKING

• Weigh the evidence-Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end.
•  Choose among alternatives-Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. 
• Take action-You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.
• Review your decision & its consequences-In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. 

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TYPE OF PLANS

Their are 2 Types of plan

1. Standing plan – The operational plans of a business organisation consist of number of sub plans or deavative plan. Eg
2. Single use plan – Single use plans are made for handeling non- recurring problems. They are also known as 'specific‘ plans as they are tailored to fit the specific solutions.

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TYPES OF PLANS

Standing plans

• Policies- Policies are the general statements or understandings which guide thinking and action. Eg-mission & vision
• Proceedures- A proceedure is a systematic way of handeling regular events. It is stated in terms of steps to be followers in carryning out certain kinds of work Eg- car production
• Methodes- A methode is the mannual or machanical means by which each operation is performed. Eg- calculation of depreciation
• Rules- They used for guiding what may or may not be done. A rules demands a specific action. Eg- No smoking

Single use plans

• Programms-A programme is a sequence of activities directed towards achivement Eg- time table of institutions.
• Projects- It may be defined as a complex cluster of relates activities with a distinct objective and a definite completion time periode- Eg-catering services
• Budgets- Budgets present the objectives of the enterprise in finacial and or quantitative terms. Eg- budget statements.

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TYPES OF DECISIONS

• Routine and Strategic Decisions – Sheduling the working methodes.
• Policy and Operating Decisions- Rules drawn by top management
• Operational and personal Decisions- Team leaders order and employees holiday respectfully.
• Programmed and non programmed Decision- Suspension of worker for the purpose of continues irregularity and dealing with the strike of the work force
• Individual and group decision

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DECISION MAKING UNDER CERTAINTY, RISK & UNCERTAINTY��

Decision making is a process of identifying problems and opportunities and choosing the best option among alternative courses of action for resolving them successfully. Usually, there are three different conditions under which decisions are made; these conditions are explained as follow:

DECISION MAKING UNDER CERTAINTY

Conditions under certainty are which the decision maker has full and needed information to make a decision. Decision is made under the condition of certainty.  The manager knows exactly what the outcome will be, as he/she has enough clarity about the situation and knows the resources, time available for decision-making, the nature of the problem itself, possible alternatives to resolve the problem, and undoubtedly clarify or certain with the result of alternatives. In most situations, the solutions are already available from the past experiences or incidents and are appropriate for the problem at hand. The decision to restock food supply, for example, when the goods in stock fall below a determined level is a decision-making under circumstance of certainty and taking financial decision regarding repairing or replacing the machineries of the factory.

DECISION MAKING UNDER UNCERTAINTY

Conditions under uncertainty provide no or incomplete information, many unknowns and possibilities to predict expected results for decision-making alternatives. The manager cannot even assign subjective probabilities to the likely outcomes of alternatives. Each of the possible states of nature of the problems causes the manager himself can not predict with confidence what the outcomes of his action to be. An assumption is often made; the manager has no information or intuitive judgment to use as a basis for assigning the probabilities to each state of nature. Managers may have to come up with creative approaches and alternatives to solve the problem. Flood, for example, may causes panic and environment of uncertainty among the victims, which leads to uncertain decision making of the victims, some may flee from home and take only important documents with them, some who live at higher ground, may wait and observe if the flood worsen then decide the next approach.

DECISION MAKING UNDER RISK

Conditions under risk provide probabilities regarding expected results for decision-making alternatives, it is due to the nature of the future conditions that are not always know in advance and the managers face this condition more often in reality compared to conditions under certainty. Although some good information may be available, it is not enough to answer all questions about the outcomes. The manager could define the nature of the problem, possible alternatives and the probability of each alternative leading to the desired results, but could not guarantee how each alternative may work. Decision has clear-cut goals, but future outcomes associated with each alternative are subject to chance. Testing of nuclear leakage in Japan after the Tsunami hit in Year 2011 is a risky decision made by Japanese Government, as the government do not know how wide the range of effecting area and the nuclear substance itself is a life threatening factor.