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Planning

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9 views12 pages

Planning

Uploaded by

xknfrjg8jm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PLANNING

Concept of Planning
Planning is the process of deciding in advance what is to be done,
where, how and by whom it is to be done.

Koontz and O’Donnell have defined planning in terms of future course

of action. They state

"Planning is the selection from among alternatives for future

courses of action for the enterprise as a whole and each

department within it.


The process of establishing goals and a suitable course of action for
achieving those goals.

It requires decision making

The necessity of planning arises because of the fact that business


organizations have to operate, survive and progress in a highly dynamic
economy where change is the rule and general changes gives rise to the
problems and throw countless challenges
Nature of Planning
• Goal oriented
• Primary function
• Pervasive
• Continuous process
• Decision making
• Future focused
• Dynamic
• Intellectual in nature
Importance of Planning

• Minimizes uncertainty: The future is generally uncertain


and things are likely to change with the passage of time.
Planning helps in minimizing the uncertainties of the future as
it anticipates future events.

• Planning provides direction: Planning gives


direction to define clear goals and objectives. It is
concerned with predetermined course of action.

• Reduces overlapping & wasteful activity: Through


planning , the efforts of various individuals and departments
are coordinated properly to eliminate overlapping. Work is
carried smoothly without any confusion and
misunderstanding..
• Facilitates control: Planning and control are inseparable in the sense that
unplanned actions cannot be controlled. Control is nothing but making sure
that activities conform to the plans.

• Facilitates in decision making: Planning ensures that goals and objectives


are clearly defined so that they act as a guide for deciding what action should be
taken and in which direction.

• Encourages innovation. Planning is basically the deciding function of


management. Many new ideas come to the mind of a manager when he is
planning. This creates an innovative and foresighted attitude among the
managers.
Limitations Of Planning
• Planning leads to Rigidity.
• Planning may not work in a dynamic environment.
• Planning reduces creativity.
• Planning involves huge cost.
• Planning is a time consuming process.
• planning doesnot guarantee success.
External Limitations Of
Planning
Natural Calamities.

Changes in Government Policies

Strategies of Competitors

Technological Changes

Changes in Fashion , Taste etc.


Steps in Planning Process
Setting Objectives

Developing Premises

Identifying alternative course of action

Evaluating alternative course

Selecting an alternative

Implement the plan

Follow up action
Levels of planning
• Strategic planning – To achieve objectives top level management makes
strategies. It represents long-term planning like 3 , 5 10 years planning. Strategic
planning provides direction to tactical & operational planning. Eg If a company
decides to invest to procure machinery to increase production.
• Tactical planning – It’s a long term planning done for monthly , quarterly and
annually. Middle level management perform this activity. Eg.in tactical planning
Production planning of machines , resource planning , inventory levels.
Levels of planning
• Operational planning - Activities are performed on daily or weekly
basis.. It involves supervisors. E.g. Workers allocation, machines
schedules, activities planning.
Plan & its type
• Plan is a document showing detailed scheme , program and strategy
worked out in advance for fulfilling an objective.

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