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Unit 3: Planning

the adverse effects of unfavourable ones. Successful managers try to visualise the problems Notes
before they turn into emergencies. As pointed out by Terry, “successful managers deal with
foreseen problems, and unsuccessful managers struggle with unforeseen problems. The difference
lies in planning.” Managers charged with the responsibility of achieving definite targets, do not
wait for future. They make the future. They introduce original action by removing present
difficulties, anticipating future problems, changing the goals to suit the internal and external
changes, experiment with creative ideas and take the initiative, attempting to shape the future
and create a more desirable environment.

3.1 Planning: An Introduction

A plan is a forecast for accomplishment. It is a predetermined course of action. It is today’s
projection for tomorrow’s activity. In other words, to plan is to produce a scheme for future
action, to bring about specified results at a specified cost, in a specified period of time.
Management thinkers have defined the term, basically, in two ways:

1. Based on futurity: “Planning is a trap laid down to capture the future” (Allen). “Planning
is deciding in advance what is to be done in future” (Koontz). “Planning is informed
anticipation of future” (Haimann). “Planning is ‘anticipatory’ decision-making” (R.L. Ackoff).
2. As a thinking function: “Planning is a thinking process, an organised foresight, a vision
based on fact and experience that is required for intelligent action” (Alford and Beatty)
“Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.”
– Koontz and O’Donnell
It is deciding in the present, what is to be done in future. It is the process of thinking before
doing. A plan is a specific, documented intention consisting of an objective and an action
statement. The objective portion is the end, and the action statement represents the means to that
end. Stated another way, objectives give management targets to shoot at, whereas action
statements provide the arrows for hitting the targets. Properly conceived plans tell what, where
and how something is to be done.

3.2 Types of Plans

Plans commit individuals, departments, organisations, and the resources of each to specific
actions for the future. Effectively designed organisational goals fit into a hierarchy so that the
achievement of goals at low levels permits the attainment of high-level goals. This process is
called a means-ends chain because low-level goals lead to accomplishment of high-level goals.

Three major types of plans can help managers achieve their organisation’s goals: strategic,
tactical, and operational. Operational plans lead to the achievement of tactical plans, which in
turn lead to the attainment of strategic plans. In addition to these three types of plans, managers
should also develop a contingency plan in case their original plans fail.
1. Operational plans: The specific results expected from departments, work groups, and
individuals are the operational goals. These goals are precise and measurable.

Examples: (a) Process 150 sales applications each week
(b) Publish 20 books this quarter
Thus an operational plan is one that a manager uses to accomplish his or her job
responsibilities. Supervisors, team leaders, and facilitators develop operational plans to
support tactical plans. Operational plans can be a single-use plan or an ongoing plan.

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