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Chapter 4 Planning

Introduction : Planning is the basic managerial function Without setting objectives there is nothing to organize, direct and control Planning is thus related to set the objectives and formulating framework to achieve those objectives

Meaning and definitions of planning

Planning as a process involves the determination of future course of action why an action, what an action how to take an action, and when to take action.
Why Objectives or the end result What Activities to be undertaken How Policies, programmes, procedures and other related elements When Timing of different moves and actions

According to Koontz and ODonnell: Planning is deciding in advance what to do, how to do it, when to do it and who is o do it According to James Stoner : Planning is the process of establishing goals and a suitable course of action for achieving those goals

According to George R. Terry :

Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired result Thus, in planning, manager uses facts, reasonable premises, and constrains and from all these fe visualizes and formulates what necessary activities are, how there will be conducted, and what will be their contribution

Features of Planning :
1. 2. 3. 4. 5. 6. 7. 8.

Planning is a process Purposeful Pervasive Concerned with looking into the future / Forward looking Intellectual process Continuity Selection of suitable course of action Commitment

Nature of planning
Planning: a rational approach
Where one stands, where one wants to go in future, and how to reach here.

Planning : an open system approach

It takes inputs from the environment, process it and gives out put to the environment

Pervasiveness of planning
Every manager has planning function to perform

Importance of Planning
1. 2. 3. 4. 5. 6.

Primacy of Planning To offset uncertainty and change To focus attention on objectives To help in coordination To help in control To increase organizational effectiveness

Steps / Process of Planning

1. 2. 3. 4. 5. 6. 7. 8. Perception of opportunities Establishing objectives Planning premises Identification of alternatives Evaluation of alternatives Choice of one best alternative Formulation of supporting plans Establishing sequence of activies