Planning

Planning means looking ahead and chalking out future

courses of action to be followed. It is a preparatory step. It is a
systematic activity which determines when, how and who is
going to perform a specific job. It is rightly said Well plan is
half done. Therefore planning takes into consideration
available & prospective human and physical resources of the
organization so as to get effective co-ordination, contribution
& perfect adjustment.
According to Koontz & ODonell, Planning is deciding in
advance what to do, how to do and who is to do it. Planning
bridges the gap between where we are to, where we want to
go. It makes possible things to occur which would not
otherwise occur.

Nature/ Characteristics of
Planning
Nature of Planning Provides basic foundation from which all
future management functions arise. Goal oriented All
pervasive Intellectual exercise Continuous process Futuristic
Integrated Process

Planning is goal-oriented : lays down the actions which

will lead towards the ultimate objectives of the organization.
Looking ahead : it involves forecasting of future environment
of organizations.

 Primacy of Planning : first of the managerial functions to

be performed.

Pervasiveness of planning: it is an important part of

every managers job but degree of planning skills required will
depend on managers position.

Selection of alternatives: selection of best alternative.

Effectiveness of planning: measured by its contribution
in reaching objectives compared with the costs incurred.

Steps/ Process of Planning

Establishment of objectives
Establishment of Planning Premises
Choice of alternative course of action
Formulation of derivative plans
Securing Co-operation
Follow up/Appraisal of plans

Significance of planning
Good and efficient planning can result in following
advantages:

Planning facilitates management by objectives.

Planning minimizes uncertainties.
Planning facilitates co-ordination.
Planning improves employees moral.
Planning facilitates controlling.
Planning provides competitive edge.
Planning encourages innovations.

Limitations of planning:
Sometimes planning fail to achieve desired results. The
causes are as below:

Rigidity
Misdirected Planning
Expensive
Time consuming
Probability in planning

Measures to overcome the limitations of

Planning

Set clear objectives

Business Forecasting
Dynamic Management
Flexible
Cost Benefit Analysis

Essential Requirement of effective

planning
Plan should be specific
Plan should be logical
Plan should be flexible
Plan should be Controlled