Q:no:1: Discuss importance of planning in organizations.

Briefly describe types of

plans.

Answer:

Planning:
Every organization whether government, a private business or a startup needs planning in
order to achieve desired outcomes. Planning refers to formulating organizational
objectives and establishing strategies to achieve those goals in a specific time period.
Importance of planning:
Planning is essential at all levels of organization because planning provides foundation to
execute organizations goals and objectives effectively. Managers cannot achieve any
objective without planning because it is a primary function of organizational
management. Planning gives direction to managers in order to achieve organization goals
and objectives. Planning is necessary because it:

1. Increases Productivity
2. Minimizes Risks
3. Promotes Coordination
4. Provides Right Direction
5. Helps in monitoring

Increases Productivity:

Planning ensures the optimal use of all the resources. It decreases the wastage of
important assets thus it makes the goal or objective cost effective which in return
improves the overall effectiveness.

Minimizes risks:

Risks and businesses are interrelated. It is very difficult to avoid these risks but planning
enables managers to forecast business related risks and to eliminate them by taking
effective measures.

Promotes Coordination:
Planning provides proper coordination among all the departments of organizations and
from top to bottom management. Proper planning involves engaging every department
and employee in achieving organizational goal.

Provides Right Direction:

Direction refers to providing accurate and authentic information, precise guidelines and
valuable guidance to employees. Planning thus provide proper direction to achieve
organization goals and objectives.

Helps in monitoring:

Monitoring is very essential to implement plans effectively. Controlling and monitoring

helps managers to evaluate and compare subordinate’s performance with the plans if they
observe any deviation they align it with the help of planning.

Types of Plans:

There are four types of plans:

1. Strategic Plans
2. Tactical Plans
3. Operational plans
4. Contingency plans

Strategic Plans:

Strategic plans are long term plans generally in which company forecasts where it wants
to be in next three, four, five years. Strategic plans are formulated by the top management
such as CEOs or Presidents they plan and execute these plans. Strategic plans provide
guidelines and framework for lower level planning.

Tactical Plans:
 Tactical plans are usually for shorter span of time and they have small scope as compare
to strategic plans. Tactical plans are normally concerned with lower level management
and what should each department do in order to achieve long term goals. Tactics
basically supports strategic plans.

Operational Plans:

Operational plans are usually formulated to support tactical plans. These are formed by
the managers and team leads. Operational plan can be for one time or it may be ongoing
plan. Operational plans are for managers to accomplish their job duties and
responsibilities.

Contingency plans:

Successful management always have contingency plans because they are flexible and
open to change. Contingency plans are used when the existing plans seems impossible to
continue due to changing circumstances.

 What criticism has been levelled against scientific approach to management? How

the scientific approach to management is compared with behavioral approach?

Answer:

Scientific Management:

Scientific Management is an approach which involves using the scientific method to

describe the “One best way’ to do the job. Scientific management theory was given by

the FREDERIK W. TAYLOR. He is also known as the father of scientific management.

Theory of FREDERIK W. TAYLOR gained immense popularity in the world of

management. His ideas spread in the to other countries and inspired others to

understand and work on his ideas. His most known followers were FRANK and LILLAIN

GILBRETH.Despite this that his theory gained much popularity and managers still uses
the work of his followers in the modern world it got plethora of criticism too. There are

many limitations to the theory.

Criticism of Scientific management:

Taylor scientific method received criticism at the time of its birth and afterwards. By

the 1930s,40s it had extensively dropped out of support. The succeeding segment

critically evaluates Taylor’s scientific management and discusses the drawbacks it has:

1. Labor exploitation

2. Lack of Unity of command

3. Mechanical Approach

4. Distinct planning from doing

5. Individualistic Approach

6. False assumptions

7. Limited Application

Labor Exploitation:

Taylor