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NATURE, IMPORTANCE

AND PURPOSE OF
PLANNING process

AJAY SIMHA K.J.


1AP07EC005
INTRODUCTIO
N
Definition of planning
Considered as the most
basic and parent exercise
It answers all basic
questions
Nature of planning
Planning is goal oriented
Continuous and ongoing process
(ex: movement of a ship)

It is a pervasive function- It is


done by managers at all levels
Flexible in nature. (ex: colour television)
Contd….
Intellectual process- involves
choice and decision making
It is an integrating process-
improper planning results in
random activity
Schematic Representation

Continuous
And
Ongoing

Goal Pervasive
Oriented Function

NATURE
OF
PLANNING

Integrating Intellectual
Process Process

Flexible
Importance and
purpose
Minimizes uncertainty and risk-
helps in decision making (ex: refrigerator)
Gives a clear view of the future-
forecasting
Leads to effective use of resources
and economic operation
Effective control-planning and
control are inseparable and
interdependent
Contd….
Helps to search from various
alternatives (ex: selection from various models)
Helps to identify potential
opportunities and threats (ex: increase
production when there is demand)

Leads to development of business


strategies and budget planning
Contd…
Planning is useful for teamwork
Sense of direction and purpose
Conveying information
Building trust
Dividing responsibility
Simplifying goals is possible
through planning
Schematic Representation

IMPORTANCE AND PURPOSE OF PLANNING

Minimizes risk

Effective control

Forecasting

Economic operation

Choosing from alternatives

Identification of opportunities

Team work

Development of business strategies

Simplifying goals
LIMITATIONS OF PLANNING
Lack of reliable data-reliable
information is not available
Lack of initiative-manager fails to
take initiative
Costly process-time consuming and
expensive process
Rigidity in organizational working
Contd….
Non-acceptability of change-a
commonly experienced
phenomenon
External limitations-very
difficult to predict
Psychological barriers
SUMMARY
A good plan must be-
Specific and simple
Logical
Complete and integrated
Feasible
Flexible-capable of being
controlled
“Planning is deciding in advance
what is to be done in future.”
~Koontz.

“Plans are only good intentions


unless they immediately
degenerate into hard work.”
~Peter Drucker
“Thinking is the hardest work there
is, which is probably the reason why
so few engage in it...” ~Henry Ford.
"Planning is a trap laid down to capture
the future." ~Allen
“Even if you're on the right track, you'll
get run over if you just sit there.”
~Will Rogers.
“Planning without action is futile, action
without planning is fatal.” ~Unknown.
“It's not the plan that is
important, it's the planning.”
~Dr Graeme Edwards.