Define planning. Explain types of planning.

DEFINITION

Planning is the pervasive and continuous executive function involving complex processes
of perception, analysis and conceptual thoughts. Planning is an important managerial
function. To get things done through his subordinates, a manager must plan ahead.

EXPLANNATION

It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-
determined goals. According to KOONTZ, “Planning is deciding in advance - what to do,
when to do & how to do. It bridges the gap from where we are & where we want to be”. A
plan is a future course of actions. It is an exercise in problem solving & decision making.
Planning is determination of courses of action to achieve desired goals. Thus, planning is a
systematic thinking about ways & means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human & non-human resources. It is
all pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

“The design of a desired future and of effective ways of bringing it about”

Types of planning

Standing plans

These plans serve as guidelines to managerial action. Managerial efficiency is enhanced

because once the decision is made , it stands without without the necessity of deliberation
each time a similar situation arises. These plans bring consistency to the operations. A bank
granting loans for house construction is an example. It does not need a different plan to
handle each request for loans.

Single use plans

These plans are made for specific purpose or period. The plan ceases to exist when the
goals are achieved. One common single use plan is the budget. A plan to set up a warehouse
is another example for single use plan.

Long range plans

These plans are the strategic plans of the organization. To become a leader in its industry
maybe a long range plan for an organization. It takes times to achieve goals. Under this
plan, assumptions must be made about uncontrollable and controllable variables.

Intermediate plans

These plans follows up once the long range plans are formulated. To become a leader in its
industry an organization may plan to set up district sales offices for realization of long
range goals. These plans usually cover a one to three year period.

Short range plans

These plans provide the guidelines for day to day actions in the organization. In realizing
its long range goal of becoming a leader in its industry and setting of district sales officers
in the intermediate range, an organization may have to recruit and train personnel as a
short range plan.

Marketing plans:

The common objectives of marketing plans are to increase their present market share and
develop new products. These objectives are converted into operational plans.
Production plans:

These focus on producing the desired amount of goods demanded at the market place.
Production planning involves routing, scheduling and dispatching processes. Routing
determines the path for the flow of production. Scheduling sets up a timetable.

Financial plans

These provide a quantitative basis for decision making and control. The financial data tell
managers how well they are doing need or working capital, need for expansion and the
sources of funds.

Man power plans

These involve a systematic way of determining the types of personnel needed in the long
and short range for an organization .Personnel of various qualities and quantities must be
recruited and made available at appropriate times.

Strategic plans

These involve determining the major goals of the entire organizational and the policies to
guide the achievement of these goals.

Tactical plan

They deal with the determination of the specific utilization of the resources of the
organization in achieving its strategic goals. The reliance for these plans is on past
performance and practice as to how an organization allocated its resources.