PLANNING – II:Planning ProcessThree principles of plans

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Introduction To Public AdministrationMGT111

LESSON 19

PLANNING II

At the end of the lecture the students will be able to understand:

Remaining types of plans

Discuss the logical steps involved in planning and see that this essentially is a

rational

approach to setting objectives

In today's lecture will examine remaining types of plans which are:

7. Programmes

Programmes are a complex of goal, policies, rules, tasks, procedures, resources to be employed.

Programmes have a time period and these are for specific purpose. Example: Rural Support Programmes,

Employees Development Programme, Tawana Pakistan Programme

8. Budgets

Budget is a statement of expected results expressed in numerical terms. It is referred to as a

`numberized' plan. For private sector organization financial operating budget is called a `profit plan'.

For public sector organization a budget of an organization is an expression of income and

expenditure. It expresses the effectiveness of organization in accomplishing its goals and objectives. The

Federal, Provincial and Districts Budgets express the policies of respective governments in providing public

services.

Planning Process

There are eight steps in planning process. These are:

Recognizing the need for planning;

Determining the objectives;

Forecasting the future;

Determining alternatives

Evaluating Alternatives

Selecting a course of action

Implementing the plan

Revising the plan

1. Recognizing the Need for Planning

This precedes planning and starts with intention of either solving problem or to attain some

objectives. Organizations have need for planning to use scarce resources efficiently, and make best use of

opportunities and prepare for threats. This is because plans are considered as future course of action. The

organizations have to look ahead to solve their problems.

2. Determining Objectives

The second step in the planning process is establishing objectives for the organization and then for

each subordinate/employee. Objectives specify expected results and indicate end point of what is to be

done by the organization and by its employees.

Objectives are to be accomplished by the network of strategies, policies, procedures, rules, budget

and programmes.

Example:

1. To increase literacy by 5% from the last year,

2. To open schools in 5 villages of the province

3. To increase profits by 2%

All the above are examples of objectives.

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3. Forecasting the future

Forecasting is based on certain assumptions about the future in which the plan is to be carried out.

The basis of forecasting is the understanding of markets, the prices? what services needs to be provided?,

what technological change there will be? What population changes will there be?

Government publishes documents like `Economic Survey', State Bank of Pakistan Report, Bureau

of Statistics Census etc. used by social scientists to forecast economic and social trends in the country.

4. Determining Alternatives

This involves examining alternative course of action. There would hardly be a plan for which

alternatives do not exist.

Example: What are the alternatives to increase literacy? The alternatives could be:

To open new schools or

To have more shifts in the existing schools or

To ask the private sector to open schools

The government may adopt one of the alternative or combination of objectives.

5. Evaluating Alternatives

Each alternative is evaluated or examined in terms of cost and benefits. One course of action may

have large investment and little benefits in the short run. Other alternative may be risky and have more

benefits/profits

Example:

To open new schools. This alternative may require more money.

To have more shifts in the existing schools. This alternative may be require less money

compared to alternative 1 because of use of existing facilities.

To ask the private sector to open schools. This alternative may not require money from the

government at all.

In evaluation of alternatives the estimation of cost and benefits is very important because on its

basis the decision is taken.

6. Selecting one Alternative

At this point the decision has to be taken to adopt an alternative from the various alternatives. The

choice could be to pick one or more than one alternatives, depending on the emphasis on objectives to be

achieved and the cost. At this stage the plans are made part of the budget. Budgets become means of tying

up the plans

7. Implementing Plan

Implementation of a plan is the most crucial aspect. The implementation determines whether the

plan was able to achieve the objectives or not.

8. Revising plan

Planning as Rational Process

As indicated by the planning process, it is a rational approach to accomplish objectives. This

process is illustrated in the following graph:

Introduction To Public AdministrationMGT111

The Planning Process

Assumptions

t -n

Time

In this diagram progress (high profits, more services etc.) are shown on vertical axis and time on

the horizontal axis. X indicates where we are (to) and y where we want to be at future time (tn). Often we

do not have all the data but we start planning and we may start our planning at x1. The arrows shown

around the line X and Y are the assumptions that we make ability the future. When we plan we are in fact

charting an unknown territory. The line XY is the decision path.

If the future was completely certain the line XY would be relatively easy to draw. But since future is

uncertain we make assumptions about future.

Three principles of plans

There are three principles of the plan. These are:

Time horizon: There are long term and short term plans. The question is how the long

term plans can be coordinated with long term plans? What is the duration of plan? These

questions suggest multiple horizons of plans.

Commitment Principle: The key to choosing right planning periods seems to be in

commitment principle logical planning encompasses a future period of time necessary to

fulfil series of action the commitment in decisions made today

Coordination of short term and long term plans: Often short term plans are make without

reference to long-range plans. There is a need to integrate the short and long term plans.

Introduction To Public AdministrationMGT111

Figure 2

Hierarchy of Objectives

Board of Directors

Socio-

economic

Bottom Up

Purpose

Top management

Mission

Top Down

Overall objectives of

Middle management

Organization (strategic)

More specific objectives

Division Objectives

Lower level Management

Department or branch or unit objectives

Individual Objectives: 1. Performance, 2. Personal objectives

In figure 2 above is the hierarchy of objectives, which are a kind of plan, and provide guide for

planning. The objectives start from the top of the organization and these objectives are formulated by the

Board of Directors of the organization. These are then translated into the overall objectives of the

organization, which in turn are made more specific. Lower level management objective are performance

related and personal development objectives. So plans are formulated based on the socio-economic purpose

of the organization which is translated to the lowest level.

Concepts:

Alternative plans:

various options that is available.

Rational process:

logical sequential process of setting goals and choosing on best

goal.

Programme:

a programme is a complex of goal, sub task and resource.

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