INTRODUCTION TO PLANNING

P.PREMKANNA
Associate Professor & Head
Dept. of Catering & Hotel Management
Hindusthan College of Arts and Science, Coimbatore

DEFINITIONS OF PLANNING
Planning may be defined as deciding in advance what is to be done in future. It is
the process of thinking before doing. It involves determination of goals as well as the
activities required to be undertaken to achieve the goals. In the planning process
managers anticipate the future and accordingly decide what activities must be
undertaken. Planning is deciding in advance-what to do, how to do it, when and by
whom.
According to James Lundy, Planning means the determination of what is to be
done, how and where it is to be done, who is to do it and how results are to be
evaluated.
According to Koontz and Donnel, Planning is deciding in advance what to do,
how to do it, when to do it, and who is to do it. Planning bridges the gap from where we
are to where we want to go. It makes it possible for things to occur which would not
otherwise happen.
According to Henry Fayol, Planning is deciding the best alternatives among
others to perform different managerial operations in order to achieve the pre-determined
goals.
According to George R. Terry, Planning is the selection and relating of facts and
the making and using of assumptions regarding the future in the visualization and
formulation of proposed activities believed necessary to achieve desired result

NATURE OF PLANNING
1. Planning is Goal-oriented
Organizations-are set up with a general purpose in view. Specific goals are set
out in the plans along With activities to be undertaken to achieve the goals. Thus,
planning is purposeful. Planning Las no meaning unless it contributes to the
achievement of predetermined organizational

2. Planning is a Primary Function

Planning lays down the base for other functions of management. All other
managerial functions are performed within the framework of plans drawn. Thus,
planning precedes other functions. This is also referred to as the primacy of planning.
The various functions of management are interrelated and equally important. However,
planning provides the basis of all other functions.
3. Planning is Pervasive
Planning is required at all levels of management as well as in all departments of
the organization. it is neither an exclusive function of top management nor of any
particular department. But the scope of planning differs at different levels and among
different departments.
4. Planning is Flexible
Plans are drawn on the basis of forecasts. Since the future is uncertain, planning
must cope with changes in future conditions. Activities planned with certain assumptions
about the future may not come true. Under the circumstances the original plan of action
must be revised in the light of changing conditions.
5. Planning is Continuous
Plans are prepared for a specific period of time, may be for a month, a quarter, or
a year. At the end of that period there is need for a new plan to be drawn on the basis of
new requirements and future conditions. Hence, planning is a never-ending activity. It is
a continuous process.
6. Planning is Futuristic
Planning essentially involves looking ahead and preparing for the future. The
purpose of planning is to meet future events effectively to the best advantage of an
organization. It implies peeping into the future, analyzing it and predicting it. Planning is,
therefore, regarded as a forward-looking function based on forecasting. Through
forecasting future events and conditions are anticipated and plans are drawn
accordingly.
7. Planning Involves Choice
Planning essentially involves choice from among various alternatives and
activities. If there is one possible goal or only one possible course of action, there is no
need for planning because there is no choice. The need for planning arises only when
alternatives are available. In actual practice, planning presupposes the existence of
alternatives.
8. Planning is a Mental Exercise
Planning requires application of the mind involving foresight, intelligent
imagination and sound judgment. It is basically an intellectual activity of thinking rather
than doing, because planning determines the action to be taken however, thinking for
planning requires logical and systematic thinking rather than guessing or wishful
thinking.

OBJECTIVES OF PLANNING
1. Reduce Uncertainty
Future is uncertain. Planning may convert the uncertainty into certainty. This is
possible to some extent by, planning which is necessary to reduce uncertainty.
2. Bring Co-operation and Co-ordination
Flaming can bring cooperation and co- ordination among various sections of the
organization. The rivalries and conflicts among departments could be avoided through
planning. Besides this, planning avoids duplication of work.
3. Economy in Operation
As already pointed out, planning selects best alternatives among various
available alternatives. This will lead to the best utilization of resources. The objectives of
the organization are achieved easily.
4. Anticipate Unpredictable Contingencies
Some events could not be predicted. These events are termed as contingencies.
These events may affect the smooth functioning of an enterprise. The planning provides
a provision to meet such contingencies and tackle them successfully.
5. Achieving the Pre-determined Goals
Planning activities are aimed at achieving the objectives of the enterprise. The
timely achievements of objectives are possible only through effective planning.
6. Reduce Competition
The existence of competition enables the enterprise to get a chance for growth.
At the same time, stiff competition should be avoided. It is possible, to reduce
competition through planning
TYPES OF PLANS
1. Standing or Repeated use Plans
These plans are prepared by managers at different levels. They are intended for
repeated use and are designed to deal with recurring problems. When a particular and
familiar problem arises, a standing plan provides a ready guide to action. They form one
of the important means for building predictable patterns of behavior in a business firm.
When a group of people live together or work together, they must be able to anticipate
each other's action. This is especially necessary for interdependent activities which
require such ability to anticipate. Without this ability it will hardly be possible for anyone
to know what he should do.
All such problems are set at rest by such standing plans, because they include all
decisions that are aimed at some end. In order to fulfill the desired effects of standing
plans, they should cover the following aspects of business management. '
a) Objectives
Objectives are goals established to guide the activities of the enterprise. So, all
planning work must spell out in clear terms the objectives to be realized from the
proposed business activities.
b) Policies
Planning also requires laying down of policies for the easy realization of the
objectives of business. Policies provide a standing answer to recurring questions and
problems. They are basic guides to action.
c) Procedures and Methods
Objectives and policies will lose much of their significance, if the planning cannot
lay down the procedures and methods for work performance. Procedures will indicate
and outline a series of tasks for a specific course of action. Method is the manner of
work performance and follows the set procedure.
d) Rules
A rule specifies necessary course of action in respect of a situation. It acts as a
guide and is in the nature of a decision made by the management. This decision lays
down what is to be done and what is not to be done in a particular situation. The rules
prescribe a definite and rigid course of action without any scope for deviation or
discretion and its breach entails penalty.

e) Strategy
They are the devices formulated from the competitive standpoint by being. fully
informed somehow about the planning secrets of the competitors. They are a kind of
business spying and are applied as the situation demands. So, the success of the plan
requires that it should be strategy oriented
2. Single-use or Operating Plans
Standing plans establish a structure of customary behavior for the desired
results. They are highly useful devices for managerial decision-making. However,
besides these standing plans, a manager can resort to single use plans to decide in
advance the action to be taken to meet a particular problem or a problem arising within
a given period. Once the problem is over or met or the time is passed, a new plan is
devised for the next period or problem. This type of planning is called single-use plans.
Single-use plans include the following aspects of planning:
a) Programs
Programs are precise plans of action followed in proper sequence in accordance
with objectives, policies and procedures. Thus, a program lays down the principal steps
to be undertaken to accomplish an objective and sets an approximate time for its
fulfillment. A program may accordingly be a major or a minor one, a long-term one or a
medium or short-term one. It is included in a single-use plan because it will not be used
in the same form once its task is over.
b) Budgets
 Budget estimates the men, money, materials and equipment, in numerical terms,
required for the implementation of plans and programs. It covers a particular period and
when the period is over, a fresh budget comes into being. Budget, thus, is the main
instrument of a single-use plan.
c) Projects
A project is a particular job that needs to be done in connection with a general
program. So, a single step in a program is set up as a project. A project has a distinct
object and a clear cut termination. So, it is included in a single-use plan. The task of
management is made easier by setting up, the work in a project. It sharpens the duties,
simplifies control and the men who do the work can sense their accomplishment. The
chief virtue of a project lies in identifying a nice, neat work package within bewildering
array of objectives, alternatives, and activities.
3. Contingency Plans
Contingency plans as the name suggests are the plans which are formulated in
some contingency. The plan is short term and time is the deciding factor in the
implementation of this land. These are most important and prior in nature. Decision
taken during this is genetically non-programmed but some time programmed decisions
are also taken. Organizations usually plan in advance to face any contingency to avoid
chance to bear losses. These plans are extremely risky in nature. Decisions maker(s)
are responsible for success or failure for the plan. Sometimes circumstances are
uncontrollable and the circumstances make the plans extremely rag

FORMS OF PLANNING
There may be several ways in which an organization can undertake planning
process though the basic steps involved remain the same in each way. Planning can be
differentiated on the basis of coverage of organizational activities, importance of
contents in Planning Process time dimension in lining, approach adopted in planning,
and degree of formalization in planning process.
For example strategic and tactical planning may be undertaken on the basis of
proactive or reactive approach, or formal or informal basis. However, in each set of
classification the type of emphasis put in planning process differs.
1. Coverage of Activities
a) Corporate Planning
Ducker has defined corporate planning as the continuous process of making
present risk-taking decisions systematically and with the greatest knowledge of their
futurity; organizing systematically the efforts needed to carry out these decisions, and
measuring the results of these decisions against the expectations through organized,
systematic feedback.
The corporate planning activities are carried out at the top level, because they
are vital for success of whole of the organization. The top management is responsible
for the formulation of such plans and is prepared according to the inputs that are given
to them either from the environment or the lower levels in the organizational hierarchy.
The plans are usually long term in nature and are broad based.

b) Functional Planning
The planning that is carried out to ensure smooth working of the organization
taking into consideration the requirements of each and every department. The goal of
functional planning is to promote standardized management practices for corporate
functions in the departments decentralized corporate management structure.
2. Importance of Contents
a) Strategic Planning
Strategic planning sets the long-term direction of tilt organization in which it
wants to proceed in future. According to Anthony, Strategic planning is the process of
deciding on objectives of the organization, on changes on these objectives, on the
resources used to attain these objectives, and on the policies that are to govern the
acquisition, use and disposition of these resources".
Strategic planning is of prime importance for any organizations as they would
specify the other decisions that need to be taken.
b) Tactical/Operational Planning
 Operational planning, also known as tactical or short-term planning, usually
covers one year or so. It is aimed at sustaining the organization in its production and
distribution of current products or services to the existing markets.
Operational planning can be defined as the process of deciding the most
effective use of the resources already allocated and to develop a control mechanism to
assure effective implementation of the actions so that organizational objectives are
achieved.
3. Time Period Involved
a) Long-Term Planning
Long-term planning is of strategic nature and involves more than one-year period
extending to twenty years or so. However, the more common long-term period is 3 to 5
years. The long-term plans usually encompass all the functional areas of the business
and are affected within the existing and long-term framework of economic, social, and
technological factors.
Long-term plans also involve the analysis of environmental factors, particularly
with respect to how the organization relates to its competition and environment.
Sometimes, basic changes in organization structure and activities become the real
output of such plans. Examples of such changes may be new product, product
diversification, individuals in the organization, development of new markets, etc.
b) Short-Term Planning
Short-term planning, also known as operational or tactical planning, usually
covers one year. These are aimed at sustaining organization in its production and
distribution of current products or services to the existing markets. Within its time
dimension, they answer pertinent questions about a particular function as follows:
Why is the action required?
What action is to be taken?
What will the action accomplish?
What are the results of the action required?
What objectives and conditions must be met?
4. Approach Adopted
 Depending on how the organizations would react towards the environmental
dynamics the planning can be categorized into proactive and reactive plans.
a) Proactive Planning
It is based on the anticipation of the future outcomes and state of affairs that
would affect the working of the organization. Such a planning has to be broad based,
highly flexible and creative by nature. The organization that favors this kind of planning
often anticipates the future and takes necessary steps before the occurrence of the
events.
b) Reactive Planning
As the name suggests this kind of planning is not in the anticipation of the future
but becomes active only when the problem is confronted or has already occurred. This
is merely a corrective action that is taken.
5. Degree of Formalization
a) Formal Planning
Formal planning exists in the formal hierarchy of the organization and is always
carried out in the stepwise process. It is according to the predefined policies and the
rules of the organization. This type of planning is done at a large scale and is based on
the logical thinking.

b) Informal Planning
Informal planning is usually carried out in very small organizations where the
formal organization structure or may not exist. The planning is usually intuitive in nature
and is short termed.

LEVELS OF PLANNING
The planning function has to be performed at all the three levels of management-
right from apex or top management down to the first line managers, i.e., foremen or
supervisors. In participative management even the operatives take keen interest in
planning their work. Of course, the higher one goes in the management structure, the
more time will be spent on the planning functions. The planning functions of the different
managers in the hierarchy of management may be outlined as below.
1. Top Management Level of Planning
Apex or top management has to devote much more time to planning and policy
making. It normally undertakes strategic planning covering a time span of one to five or
even ten years. Strategic planning mostly relates to resource mobilization. It is also
concerned with the strategies or courses of action, programs, policies, procedures and
standards that will determine the procurement, use and disposition of these resources.
In short, top management is concerned with strategic plans which are long-range plans.
2. Middle Management Level of Planning
Middle management has to formulate short-term and/or tactical plans and devotes
relatively less time to planning and more time to coordination and communication. It is
concerned with administrative or tactical planning that supports the strategic planning.
Specific plans for the different areas of management discipline, such as, personnel,
production and marketing are implemented by middle management. Examples of
administrative or tactical planning are; Research and Development, Marketing,
Manufacturing, Finance, etc. Administrative plans are mostly medium-range plan
3. Lower Management Level of Planning
Lower management is directly concerned I with operational planning. At this
level, the first-line managers such as the heads of . departments and sections
concentrate on planning of daily, weekly and monthly operations. In short, it relates to
short-range plans. Typical examples of operational planning are; plans for finished
goods inventories to meet current market demands, plans to accelerate research
projects which are behind schedule, plans of routing, scheduling and dispatch in
productions, cash-?ow budget, etc. All operational plans h are concerned with the
planning structures and repetitive activities in the different i departments of the
organization.

TOURISM PLANNING AND SUSTAINABLE TOURISM

Liberalization, privatization and globalization have fuelled the creation of a rapidly
changing and highly competitive environment worldwide. Nations, industries and firms
are strategically working to develop sustainable competitive advantage across sectors.
Most of the developing economies are in rapid transit towards becoming “service
economies” and therefore, the relative competitiveness of the service sector is emerging
as a crucial factor as it influences the overall competitiveness of a country (Dugar,
2005). Playing a significant role here is the tourism industry, the largest and fastest
growing industry in the world, employing over 260 million people and generating 10.7
percent of the world’s GDP (Eco India, 2014).
As noted by the World Tourism Organization (2013), sustainable tourism
principles refer to the environmental, economic and socio-cultural aspects of tourism
development. A suitable balance must be established between these three dimensions
to guarantee its long-term sustainability. Its importance lies in its objective which is to
conserve resources and increase and preserve local cultures and traditions. In simple
terms, sustainable tourism is responsible tourism intended to generate employment and
income, thereby reducing any deeper impact on the environment and local culture.
The principles of sustainable tourism lay especial emphasis on the participation
of local communities at tourism destinations. Here, the active involvement of local
people is the critical success factor in sustaining momentum. Ideally, local communities
should reap direct benefits from tourism development as reflected by the expansion of
local business opportunities. Training and education programmes play an important
support role here as they help to improve cultural heritage and the management of
natural resources.