Page 58 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management Amit Kumar Sharma, Lovely Professional University

Notes Unit 3: Planning

CONTENTS
Objectives
Introduction

3.1 Planning: An Introduction
3.2 Types of Plans
3.3 Steps in the Planning Process

3.4 Characteristics of Planning
3.5 Traditional Objective Setting
3.6 Strategic Management
3.6.1 Types of Strategies
3.6.2 Elements of Strategic Management

3.6.3 Reasons why a Strategy Fails
3.6.4 Limitations of Strategic Management
3.7 Summary

3.8 Keywords
3.9 Self Assessment
3.10 Review Questions
3.11 Further Readings

Objectives

After studying this unit, you will be able to:

Identify the types of plans
Discuss the planning process
State the characteristics of planning

Explain traditional objective setting
Discuss the concept of strategic management

Introduction

The necessity for planning arises because of the fact that business organisations have to operate,
survive and progress in a highly dynamic economy where change is the rule, not the exception.
The change may be sudden and extensive, or it may be slow and almost imperceptible. Some of
the important forces of change may be: changes in technology, changes in population and
income distribution, changes in the tastes of consumers, changes in competition, changes in
government policies etc. These changes often give rise to innumerable problems and throw
countless challenges. Most of these changes are thrust on managers thus, managers are forced to
adjust their activities in order to take full advantage of favourable developments or to minimise

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