UNIT 4 - PLANNING

Introduction Of Planning 


Planning is the first and foremost function of Management. Planning is an intellectual process of thinking resorted to decide a course of action which help to achieve the pre-determined objectives of the organisation in future.

Defination 

Planning is deciding the best alternatives among others to perform different managerial operations in order to achieve the pre-determined goals. Henry Fayol

Characteristics of Planning 

        

 



Planning is looking into the future. Planning involves pre -determined line of action. Planning discovers the best alternative out of available many alternatives. Planning requires considerable time for implementation. Planning is a continuous process. Planning s object is to achie ve pre-determined objectives in a better way. Planning integrates various activities of organisation. Planning is done for a specific period. Planning not only selects the objectives but also develops policies, programmes and procedures to achieve the objectives. Planning is required at all levels of management. Planning is an inter-dependent process which co -ordinates the various business activities. Planning directs the members of the organisation. Growth and prosperity of any organisation depends upon Pl anning.

Objectives of Planning 
    

Reduces Uncertainty Brings Co-operation and Co-ordination Economy in Operation Anticipates unpredictable contigencies Achieving the pre-determined goals Reduce competition

Nature of Planning 
         

Primary nature of Planning Planning contributes to Objectives Planning an Intellectual activity Planning results in higher efficiency Planning is a continuous process Planning is flexible Unity and Consistency Planning is common to all Basis for all managerial functions Getting co-ordination Considering limiting factors

Importance of Planning         To manage by Objectives Convert uncertainty into certainty Economy in operation Help in co-ordination Tackling increasing complexities of business Effective Control Effective utilisation of resources Avoiding business failures Advantages of Planning                   Better utilisation of resources Helps in achieving objectives Economy in operation Minimises future uncertainties Improves competitive strength Effective control Motivation Co-operation Promote growth and development Develops rationality among management executives Prevents hasty judgment Reduces Red-tapism Encourages innovative thought Improves ability to cope with changes Creates forward looking attitude in management Development of efficient methods Delegation of authority facilitated Anticipation of crisis       Methods / Types of Planning / Components / Elements of Planning    Objective Plans tanding Plans Master Plans £ ¡ ¢   teps in Planning process       Analysis of External Environment Analysis of Internal Environment / Resource Audit Determination of Objectives Determining Planning premises and constraints Examination of alternative courses of action Weighing alternative courses of action election of the best alternative courses of action Establishing the sequence of activities Formulation of action programmes Determination of secondary plans ecuring anticipation of employees Follow-up and evaluation .

A good plan should provide for a proper analysis and classification of actions i. feasible and reasonable. .Limitations of Planning             Inflexibility Limitation of forecasts Unsuitability Time consuming Costly Mental Ability False sense of security Delay during emergency period Capital investment Political climate Trade Unions Technological changes Characteristics of a good plan        A good plan should be based on clearly defined objectives-overall corporate objectives as well as functional and / or individual objectives i. A good plan should provide to use the available resources to the utmost. A good plan should be viable.e. A good plan should be simple and easily understandable A good plan should be flexible or adaptable to deal with new conditions A good plan should be balanced in all respects and gives equal emphasis to all vital areas of business. precise objectives of the departments as well as individuals as well as the individuals working in the departments. it establishes necessary guides and standards of performance. before creating new resources and a new managerial set up.e.

Sign up to vote on this title
UsefulNot useful