NATURE, IMPORTANCE

AND PURPOSE OF
PLANNING process

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 processimproper planning results in
random activity

Schematic Representation
Continuous
And
Ongoing
Pervasive
Function

Goal
Oriented
NATURE
OF
PLANNING

Intellectual
Process

Integrating
Process
Flexible

Importance and
purpose

Minimizes uncertainty and risk-helps in

decision making (ex: refrigerator)
Gives a clear view of the futureforecasting
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 beSpecific 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.