10 AUG 2020

Importance of Planning.
1. Planning provides direction: Planning provides direction by
deciding in advance what action should be taken.
2. Planning reduces the risk of uncertainty: Planning reduces
uncertainty by anticipating changes and shows the ways to
develop the ways to deal with them.
3. Planning facilitates decision making: Planning facilitates decision
making by making a choice from among the alternative course of
action.
4. Planning reduces overlapping and wasteful activities: Planning
reduces overlapping and wasteful activities by coordinating the
activities of different divisions.
5. Planning promotes innovative ideas: Planning promotes innovative
ideas requiring application of mind and foresight.
6. Planning promotes standard for controlling: Planning provides the
standards against which actual performance is measured.It helps
managers to identify deviaStions and take corrective action.
 27 JULY 2020

PLANNING
Planning is the primary function of management.
All business organisations whether government or
private, big or small, require planning.
Planning can be defined as ‘ thinking in advance
what is to be done, when it is to be done, how it is
to be done and by whom it should be done.’
Planning bridges the gap between where we are
standing today and where we want to go.
Definition

● Planning is defined as setting objectives and deciding in advance the

appropriate course of action to achieve these objectives. It requires taking
decisions since it involves making a choice from alternative courses of
action.
Features of Planning

● 1. Planning focuses on achieving the objectives .

● 2. Planning is the primary function of management.
● 3.Planning is pervasive.
● 4. Planning is futuristic.
● 5.Planning is continuous
● 6. Planning involves decision making.
● 7. planning is a mental exercise.
Questions

● 1. Dreams can be turned into reality if business thinks in advance what to

do and how to do. Identify the function of management.
● 2. Planning is the _____ function of management.
● 3.Define planning.
● 4. State any two features of planning.
Limitations of Planning

1. Planning leads to rigidity: Once a detailed plan is drawn the managers

may not be in a position to change it .
2. Planning reduces creativity: Planning reduces creativity since people
tend to think on the same line as others.
3. Planning is time consuming: Planning is time consuming as checking
accuracy of may require a lot of time.
4. Planning involves huge costs.
5. Planning does not guarantee success: Planning does not guarantee
success unless it is translated into action.
6. Planning may not work in a dynamic environment.
Questions
1. How does planning provides direction?
2. Why is planning a time consuming process ?
3. Explain any four limitations of planning.
4.Explain the following merits planning:
a) Planning reduces the risk of uncertainty
b) Planning establishes standard for controlling.
 11 AUG 2020

STEPS IN PLANNING PROCESS

● Setting objectives
● Developing premises
● Identifying alternative course of action
● Evaluating alternative course of action
● Selecting an alternative
● Implementing the plan
● Follow-up action
QUESTIONS
1. Explain the following as features of planning
a )Planning is continuous
b) Planning is futuristic
2. Define planning premises.
3. What is meant by implementation of the plan?
4. A company is manufacturing garments. The manager wants to increase
profits by purchasing new high speed machines or increasing the sale
price or using waste material in manufacturing stuffed toys.
He decided that using waste material to increase the profit is the best solution for him.
a) Identify the concept of management involved
b) Mention the steps involved in the above process by quoting lines from the above
question.
c) To complete the process of the concept identified in (a) , what two next steps does
the manager have to take?