ee oe =. PINCUS AND PRACTICE OF Waa are classified as planning se dct seers zy of planning, its folowing features canbe identified: ctr non et ph process rather than behaviour at piven point of time. This process every organisation ru’ pi fie future course of action. Sa basically related ° ily concerned with looking into future. It require orecasting Planning the tion has tp function Therefore correct 5 to corectdecsions about future course of selection of suitable coun of ston. Ths means that Bees foc achieving partcular ciety meet oat mare not equal nae anf utc ore roan al levels of the organ eect at of foncered With the determina of fre cosa : accel higher vel manngeest Me ferent eels maybe erst inthe anna an ‘Tnisale eroncos managers are concerned about the totality ofthe organnaen Miah make decisions in other activities also, thou ate it with the environment while managers a lower vcs may planning {8 commitment is based on future conditions which are Ble As such, an adjustment is needed between the vations ncins dis aan ing en opal eapial Raph sar ee oe ‘Govern re Pr s Ren esa Se onsee Perce start Becher ecto in ie of bingo reat : eases, : Sach for defining where one stands, where one wants to there. The concept of rationality denotes the choice ot tated objectives. In organisational context plan iss, and ol tribution to ‘achieving #7 Haters of actions of aniepst°e fad dircton of change as be 000° 2 ———s oe that embosit pag yt cars ce carn ne - sensations cng Principe of Manag, Homewcod, Richard. win, 8» “Kanagemen!Pracpe and Pacis, New York: Macias 6 Planning for bridging current and dsirod statsessential for the small and the large organisations. OF PLANNING great importance in all types of organisations—business 0 ‘or public sector, small or large, in developed countires ‘The systems approach of management suggests interaction of ts environment on continuous basis. This interaction can better efficient planning. In fact, in today’s context, the difference ‘unsuccessful organisations is because of planning activities ‘organisation which thinks much ahead about what it can to succeed as compared to one which fails to do so. For tries Limited has achieved phenomenal growth within a cause of its ability to plan to take up new projects. In particu- in the following ways: Planning p: all other igns. Since organising, staffing, directing, and controlling are designed of organisational objectives, planning logically pre- of all other functions. Although all the functions ‘as a system of action, planning is unique in that it establishes for all group effort. All other functions are performed to ‘by the planning process. This can be presented as follows. ——+| What kind of ‘organisation arene ‘Which helps to know Which affects the kind of direction In order o assure ‘success of plansSorcery ee Pinning do Sa an, a ibis! met tak peti cae sham ene rats cl ea ts appiable Prius face or from one organisation ror secs enn tbe tre for «mi fray ntbe when nh i pescos of pssning wri © 1 eS et inne the process is applicable to all types of plans, Panning +, 7 = tps in planing are in sch 2 way tat they lea to ‘into action by reaching to the slate of ‘establishing of ach stage contribtes to plan frmlaton ia the foloeing ae aig es st POW of View, Wrean be tonsidered asthe Srganisation stands-in the Tight of te suerte ana ‘why the organisation Wants osalieussoaies Yo gainJThis provides an opportunity toe he Drgambation tries to relate elf with the sto vantages of opportunites and avoids threats This analysis of environment isnot fake in Very labor Sto the determination of opportunities at fst nclance One to be available the other steps of planning are an IAt this stage, major organisational and unit objectives Bresulls expected and indicate the end point, dL s tnrbe ac areas are those which are inp “These are identified on the nisation, hey resull areas i a, Manufacturing, and 40 on. Once ves of lower units an subunit onal objectives give direction tothe nate ota objectives, define the obtives of mayor de Blithe objectives of subordinate departments and Ibe hierarchy of objectives in the organisa determination of organisational goals the next step es, that is, the use hich planing ass Dremises we Planning ssumptane the sper sonditions. Thus. planing preas-aneeniemad ck kon us Blain. tude tll factors gt tsk earonment the FleTS eee INCIPLES AND PRACTICE OF se a cr Ne and action, gOVETMINE Policy. _FONOAMENTAES OF PANNING RP of Supporting Pans. Aver form FESOUIEES OF VAF}OUS types, an ‘presse The plane Blaming romans atlevels of planning 4, PAM AS ce of Acti cama ec Seunuamgseee tN from extemal tases ature aga fares ner oa ‘the mat part a ten pee anager Pica a ee Rew Sern activities is determined so that plans se pet inns ieee i dt cat be prepa io phe na at Aaa ne Tatinel'The cacy cach Types of Planning, fortert sinese or swith other organisations ‘ategory, there may te E forthe panne cn ;which do not meet the minim defined in several ways sine of th ap see: For example, one company has defined rq Fin new project and may not in Petia le able ak the outcome of 3 His affected V3 evaluation of various alternatives, he Peeeeieesn cites iat moe than ore ati “Aeoure of ay not be the Dest cy wih 3 several ways in which an organisation cas ‘steps involved remain the same fon the basis of coverage of orga fume dimension in planning. approach aac roc, planning, approach Slop lisation in planning process, as shown in Table ‘Corporat an uncon planing ‘Strategie an acscalopeatona planing Longer ana shot erm planing Proactive and reactive pan Formal and ioral planning that planning activity is pervasive and can be undertake ganisation. It may be forthe organisation ss a whole os based on the coverage of ative, {8.4 whole, known as corporate planing or fev is ier planning. Planning activites atthe top level cover the entire organisational ate Te longterm aes ote ea neve these abe heawpe a7 ete, = ae Santen eet soca factor State plnnng ns vetoes a oe tains ant a oreo wife fi a pene wh pn vss ies Bre Sa tte oro pense Pelee cce ee Sees ag tea Beier Stemay nee Feeiieecern wink rate a dpaaio Svea amor 3 period of te in the fture neces Sealine eens mem aly cove Sustaining the organsation in iG protect Ba procs oF services to te easing masks aes ed a follows: ete proces of desing he mest eine we o he Kan to develop contl mechani tosses aclonssothatorgannton cece arecscved > Ag taken inthis way answers the questions about particular ios? taken? plish? the action required? ms must be met? Gi indertaken out ofthe strategic planing. The vious Bae feta of ped wings. leney of operating activites though aralysne re Progaming te comprcnenare oof wei sem operations, tut soon and Operational Planning involved in strategic and operational planning, there lien thetwo. The major diferences terween the Wo cat ie planning guides the choice among the broad direc Bieion seeks fo'nove ani concore hs gence vised Management New Dei Suit Chand Son, 2081p. 23 sche eco) oeNeen Cpa ncaPL# AND PRACTICE Os vig eect. OFe fut, and focuses on SN te gs te ot vere 0 1 rt i a incl aly eee og re he nT era pang Pca ae er Obra eecve se of NEN TOSS es opertona planing eer. Susteg pl ae “of what operational planning cA” Jormulated usualy by tp __ Strategic a sation. At this lve the organisation ie pln sen and have neces py planning ion and is generally need for integrating fstaken as an integra others requ Mor example, is more sb Ly into ( og 4 ings oto obvious 3 2 ae industry co Ee echnologtcal = on Sometime, bv anges ran he real Output of such plans: Examples of such change ity aceon: ation individuals in the organtaton smrodnen markets (or PLANNIN Sie ti el clits cnet poder iment period of six months only d'the planning period covers ‘Longton {s of strategic nature and, involves more than. ate involves eta near pero DO ee cc tier eee ee caer gies coaly orcatpes at os ener ihn te exiting and angen incre oman areas Many wh pect to how the Sines bene ? Mare aimed at sustains; organisation i Ws production an sti 10.the existing markets These plans din fuction, marketing, nance. ete Within te tne i fof the action required?” fand conditions must be met? and Long-term Planning. In fist in 9 succes fare made with reference to keto long-term plans. As such ther rapes, The manager should conc fare contributing to the fons term plans the former in the light ofthe later as! = this fact. Sometimes the short-term pla ‘contribute to the organisational jective to be modified. This can be sone while REACTIVE PLANNING Jno proactive and reactive eS We have seen earl sOtganisations respanses to thes o> may be either prowtivealll 4 oe FANNING s Joxconsstnt operations Such plane may be cased in two Tingl-un Pans or stmigic lane an neon hae iene owes miplemeniaton or operation! pasa Pee rear Plane, (Standing pans provide suldetins for futher ae al ha rd of tne Or octet a a ad ari plans are relevant fora specified tine ane Stes the ‘ shes target, etoJConcrally these plane oe de te 3 ee alateetety Rete actions a dtermined. in onder to put hae cts : ; Ibaget, ct, are prepared for speci tn period Deal Plans. Another way of casting various ongersaio Beat sma pera eg a we Sagan the loge: coure scion for an eran a inchade determination of organisational ebjtves ppolices, and strategies. These elatcpics cre mpoceeene et ea ‘both major and minor. Examples of major oper plans, ‘minor pla ae inthe form of quotas aed targets“ cedures are rules provide pulling operational otis, action ts disctssed above are interinked and may be hich higher-order plan helps odenve a, oweroder Fdection,alovter-order plan contributes othe achiever of ‘ plan. The Werarchical nature of varios plans is [ Mission or) _ pupoes | [asim ofegen p—— | ; ‘objecwes | Beech +——, Srmmges | Shalify Paice | Poly, Procedure ana Prododane a Cale [Programmes and! oe rm feel frie votes ane | Sede 65: Hierarchy of organisational plansEXHIBIT 6.2: Planning at ACC Limited OB Planning process at Associated Cement Companies Limited includes both long term andy, term. Long-term planning consists of policy decisions and is generally on the basis of a fives, plan. The decisions are taken at the Board of Directors’ level and the areas concemed a rehabilitation, (ii) expansion, and (ii) diversification. All these require careful analysis 4, situation because of high cost of investment and longer gestation period. Short-term plang prepared in three areas: (i) production, (ii) despatches, and (ii costs. Minute details re wae >, out in each of these areas. Steps involved in each of these areas start with the prepara targets by various production units located at different places. These targets are submit the Head Office located at Mumbai for scrutiny. The Head Office scrutinizes the targetsins light of those achievable under optimum conditions. Targets fixed under this process m slightly higher than the targets submitted by each unit. These targets work as motivating la’ to the various production units. The targets so envisaged by the Head Office are then discus by the heads of units. Thereafter, the agreed targets are fixed. These targets are put betowt * Executive Committee of Directors which analyses the information and makes suitable cha } YW 4 | , ( ( q if necessary,’and places it before the Board of Directors which finally lays down the pa Besides, capital and revenue budgets are prepared by the Head Office in the form of const 5 tion of budgets prepared by various production units.