A DETAILED ANALYSIS OF THE FACTORS

AFFECTING THE PLANNING PROCESS IN AN

ORGANISATION
FUNDAMENTALS OF MANAGEMENT
________________________________________

THIS FINAL DRAFT IS SUBMITTED IN THE PARTIAL

FULFILLMENT OF THE PROJECT IN FUNDAMENTALS OF
MANAGEMENT
FOR B.B.A. LL.B. (HONS.) FOR THE FIRST SEMESTER.
________________________________________________
SUBMITTED BY: SHIVAM MADHUR (2635)
ABHISHEK SINGH (2602)
AMAN KUMAR (2607)
CHAITANYA VOHRA (2614)
DEWANSH RAJ (2617)

FIRST SEMESTER
SUBMITTED TO: DR. SHWETA VATS
ASSISTANT PROFESSOR OF MANAGEMENT

CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

OCTOBER 2021

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DECLARATION BY THE CANDIDATES

We, students of Chanakya National Law University hereby declare that the
work reported in the B.B.A. L.L.B. (Hons.) project report entitled
“A DETAILED ANALYSIS OF THE FACTORS AFFECTING THE
PLANNING PROCESS IN AN ORGANISATION”
submitted at Chanakya National Law University, Patna is an authentic record of
our work carried out under the supervision of Dr. Shweta Vats. We have not
submitted this work elsewhere for any other degree or diploma. We are
responsible for the contents of our Project Report.

(Signature of the Candidates)

NAME: SHIVAM MADHUR (2635)
ABHISHEK SINGH (2602)
AMAN KUMAR (2607)
CHAITANYA VOHRA (2614)
DEWANSH RAJ (2617)
COURSE: B.B.A. L.L.B. (Hons.)
SESSION: 2021-26

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ACKNOWLEDGEMENT

To list who all have helped us is difficult because they are so numerous and the
depth is so enormous.
We would like to acknowledge the following as being idealistic channels and
fresh dimensions in the completion of this project.
First of all, We are very grateful to our subject teacher Dr. Shweta Vats without
her kind support of whom and help the completion of the project would have
been a herculean task for us.
We acknowledge our family and friends who gave their valuable and
meticulous advice which was very useful and could not be ignored in writing
the project. We also want to convey the most sincere thanks to our faculty for
helping me throughout the project.
Thereafter, We would also like to express our gratitude towards our seniors who
played a vital role in the compilation of this research work.
.
Last, but not least, we would like to thank the almighty for obvious reasons.

SHIVAM MADHUR (2635)

ABHISHEK SINGH (2602)
AMAN KUMAR (2607)
CHAITANYA VOHRA (2614)
DEWANSH RAJ (2617)

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TABLE OF CONTENT PAGE-NO

1) Introduction………………………………………… 5
a) Planning…………………………………………
b) Importance of Planning…………………………
c) Features of Planning……………………………
d) Classification of Plans………………………….

2) Planning Process………………………………….. 10
a) Setting Objectives……………………………...
b) Developing Premises…………………………..
c) Identifying Alternative courses of Action……..
d) Evaluating Alternative…………………………
e) Selecting an Alternative………………………..
f) Implementing the Plan………………………….
g) Follow up Action……………………………….

3) Factors affecting the Planning process…………… 13

a) Size and Shape of the Part……………………..
b) Strength Characteristics of the Part……………
c) Quantity Required……………………………...
d) The Accuracy and Surface Quality Required….
e) Utilization of Existing Equipment……………..
f) The Skill of Manpower……………………………..
g) The Delivery Date of Components or Product…

4) Research Methodology……………………………. 16
5) Data Analysis, Findings, and Discussion…………. 18
6) Suggestions……………………………………….. 23
7) Our Learning……………………………………… 24
8) Managerial Implication…………………………… 27
Bibliography

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INTRODUCTION

Planning is the process of thinking about the activities required to achieve the desired goal.
Planning is based on foresight and, in humans at least, on the fundamental capacity for
mental time travel. The evolution of the capacity to think ahead is considered to have been a
prime mover in human evolution. The first and most important step in achieving desired
outcomes is to plan. It entails the construction and upkeep of a plan, as well as psychological
factors that necessitate mental abilities. There are even a few exams that may be used to
assess someone's ability to plan effectively. As a result, planning is a key feature of
intelligent behavior.1

The legal environment of allowed construction developments is another key meaning,

typically referred to simply as "planning."Furthermore, planning follows a precise procedure
and is required in a variety of jobs (especially in disciplines such as management, business,
and so on). There are various types of strategies that assist firms to attain efficiency and
effectiveness in each industry. The link between planning and forecasting is a crucial, albeit
frequently overlooked, part of planning. Forecasting is the process of predicting what the
future will look like, whereas planning is the process of anticipating what the future should
look like for a variety of circumstances.

Planning combines forecasting with the preparation of scenarios and how to react to them.
Planning is one of the most important project management and time management techniques.
Planning is preparing a sequence of action steps to achieve some specific goal. If a person
does it effectively, they can reduce much the necessary time and effort of achieving the goal.
A plan is like a map. When following a plan, a person can see how much they have
progressed towards their project goal and how far they are from their destination.

Significance of planning2

Planning provides directions:

Planning offers guidance for action by describing how work will be done in advance.
Planning ensures that the goals or objectives be defined clearly so that they may be used as a
guide for selecting what action to take and in which direction to do it. Employees are aware
of what the organization must do and what they must do to attain those goals if goals are
well stated. The organization's departments and personnel can collaborate. Employees would
work in separate directions if there was no planning, and the organization would not be able
to fulfill its objectives.

Planning reduces the risks of uncertainty:

A manager's ability to look ahead and foresee changes is enhanced through planning.
Planning demonstrates how to deal with changes and unknown occurrences by determining
the activities be completed in advance. Changes and occurrences cannot be avoided, but they
may be foreseen and management solutions devised.

1
Planning - Wikipedia
2
Importance of Planning: It’s Features, Limitations, Process and Types (yourarticlelibrary.com)

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Planning reduces overlapping and wasteful activities:
The basis for coordinating the actions and efforts of many divisions, departments, and
individuals is planning. It aids in the avoidance of ambiguity and misunderstanding. Work is
carried out easily and without interruptions, because preparation provides clarity in thinking
and action. Activities that are unnecessary or redundant are reduced or removed. It is simpler
to identify inefficiencies and take remedial action to address them.

Planning promotes innovative ideas:

Since planning is the first function of management, new ideas can take the shape of concrete
plans. It is the most challenging activity for the management as it guides all future actions
leading to the growth and prosperity of the business.

Planning facilitates decision making:

Planning allows management to see into the future and choose from a variety of options. The
management must weigh all of the options and choose the most realistic one. Setting goals
and forecasting future situations are all part of planning, which aids in making reasonable
decisions.

Planning establishes standards for controlling:

Setting objectives is an important part of planning. Planning, organizing, staffing, directing,
and controlling are all aspects of the management process that are concerned with achieving
predefined goals. Planning establishes the benchmarks or goals against which actual
performance is evaluated. Managers can determine if they were able to achieve their
objectives by comparing actual performance to some standard. It is possible to fix any
deviations. As a result, we might conclude that planning is a precondition for controlling.
Finding deviations, which is a component of regulating, would be impossible if there were
no objectives and standards. The type of corrective action necessary is determined by the
degree to which deviations from the standard exist. As a result, planning is the foundation of
control.

Features of planning3

Planning focuses on achieving objectives:

Organizations are formed with a certain goal in mind. The plans include specific goals as
well as the tasks that must be completed to reach the goals. As a result, planning serves a

3
Characteristics of Planning (managementstudyguide.com)

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function. Planning is useless unless it aids in the attainment of planned organizational
objectives.

Planning is a primary function of management:

Planning sets the groundwork for all other management tasks. All other managerial tasks are
carried out per the plans that have been put up. As a result, planning takes precedence over
other functions. The priority of planning is another term for this. The many managerial
functions are intertwined and equally vital. Planning, on the other hand, is the foundation for
all other functions.

Planning is pervasive:
All levels of management, as well as all divisions within the organization, must plan. It is not
only the responsibility of senior management or anyone department. However, the breadth of
planning varies at different levels and among departments. Top management, for example, is
in charge of overall planning for the company. Departmental planning is done by middle
management. Supervisors are in charge of day-to-day operational planning at the lowest
level.

Planning is continuous:
Plans are made for a specified time, which might be a month, a quarter, or a year. After that
time frame, a new plan must be created based on new requirements and future situations. As
a result, planning is a never-ending process. The planning cycle is linked to planning
continuity. It indicates that a strategy is devised, implemented, and then followed by another
strategy, and so on.

Planning is futuristic:
Looking ahead and preparing for the future is the essence of planning. The goal of planning
is to efficiently meet future occurrences to an organization's benefit. It entails looking into
the future, analyzing it, and making predictions about it. As a result, planning is viewed as a
forward-looking activity based on forecasting. Future events and situations are predicted by
forecasting, and preparations are made accordingly. Sales forecasting, for example, is the
foundation upon which a business creates its yearly production and sales strategy.

Planning involves decision making:

Choosing among a variety of options and activities is the essence of planning. There is no
need to plan if there is just one conceivable aim or course of action since there is no other
option. Only when there are no other options does planning become necessary. Planning, in
practice, assumes the presence of options. As a result, planning entails thoroughly examining
and evaluating each option before selecting the best one.

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Planning is a mental exercise:
Planning necessitates the use of the intellect, which includes foresight, clever imagination,
and good judgment. Because planning dictates the action to be performed, it is primarily an
intellectual activity of thinking rather than acting. Planning, on the other hand, necessitates
rational and methodical thought rather than speculation or wishful thinking.

Limitations of Planning4

Planning leads to rigidity:

A well-defined plan is written up at an organization with clear goals to be completed within a
certain time range. The future course of action is therefore determined by these plans, and
managers may not be able to modify it. This type of rigidity in plans might cause problems.
Managers must be allowed certain leeway to adapt to changing situations. When
circumstances change, sticking to a pre-determined strategy may not be in the best interests
of the organization.

Planning may not work in a dynamic environment:

There is no such thing as a constant in the economic world. Economic, political, physical,
legal, and social elements all have a role in the environment. The company must adjust to
changes regularly. If economic policies are changed, political situations in the nation are
unstable, or a natural disaster occurs, it becomes impossible to reliably predict future
environmental trends. Market competition may also disrupt financial planning; sales
objectives may need to be updated, and cash budgets may need to be adjusted as a result, as
they are based on sales statistics. Because planning cannot anticipate everything, there may
be roadblocks to good planning.

Planning reduces creativity:

The activity of planning is carried out by senior management. The remainder of the
members usually merely carry out these ideas. As a result, middle management and other
decision-makers are not authorized to diverge from plans or take independent actions. As a
result, much of their initiative or originality is lost or diminished. The majority of the time,
employees do not even try to make plans. They are merely there to carry out commands. As
a result, planning in this manner diminishes creativity since individuals prefer to think in
similar ways. There's nothing unique or novel here.

4
7 Major Limitations to Effective Planning | Business Management (yourarticlelibrary.com)

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Planning involves huge costs:
Plans have a lot of expenses associated with them when they are created. These can be
measured in terms of time and money; for example, verifying the veracity of information
might take a long period. To determine facts and statistics, detailed plans need scientific
computations. The expenditures paid may not always be justified by the schemes' benefits.
There are also a lot of ancillary charges, such as boardroom expenses, consultations with
professional specialists, and early studies to determine the plan's feasibility.

Planning does not guarantee success:

Only carefully drafted and implemented strategies may lead to the success of a business. Any
strategy must be put into action for it to be effective. Managers have a propensity to depend
on past effective ideas that have been tried and tested. It is not necessarily true that if a
strategy has worked in the past, it will work again. Aside from that, there is a slew of
additional unknown variables to consider. This complacency and a false sense of security
may result in failure rather than success. Despite its limits, planning is not a pointless
activity. It's a tool that should be handled with care. It serves as a foundation for analyzing
future actions.

Meaning of Planning
Planning is ascertaining before what to do and how to do it. It is one of the primary
managerial duties. Before doing something, the manager must form an opinion on how to
work on a specific job. Hence, planning is firmly correlated with discovery and creativity.
But the manager would first have to set goals. Planning is an essential step what managers at
all levels take. It requires making decisions since it includes selecting a choice from
alternative ways of performance.

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PLANNING PROCESS

To understand and know the in-depth reasoning behind the planning process, we will cite an
example of each of a mobile phone company to comprehend its practical use.

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 As planning is an activity, there are certain reasonable measures for every manager to
follow:5
(1) Setting Objectives

This is the primary step in the process of planning which specifies the objective of an

organization, i.e. what an organization wants to achieve.
 The planning process begins with the setting of objectives.
 Objectives are results which the management wants to achieve by its operations.
 Objectives are specific and are measurable in terms of units.
 Objectives are set for the organization as a whole for all departments, and then
departments set their objectives within the framework of organizational objectives.
Example:
A mobile phone company sets the objective to sell 20,000 units next year, which is double the
current sales as per the report.
(2) Developing Planning Premises

Planning is essentially focused on the future, and certain events are expected to affect

policy formation.
 Such events are external in nature and affect the planning adversely if ignored.
 Their understanding and fair assessment are necessary for effective planning.
 Such events are the assumptions based on which plans are drawn and are known as
planning premises.
Example:
The mobile phone company has set the objective of 20,000 units sale based on forecast done
on the premises of favorable Government policies towards digitization of transactions as
well as the availability.
(3) Identifying Alternative Courses of Action

Once objectives are set, assumptions are made.


 Then the next step is to act upon them.
 There may be many ways to act and achieve objectives.
 All the alternative courses of action should be identified.
Example:
The mobile company has many alternatives like decreasing price, increasing advertising and
promotion, after-sale service, etc.
(4) Evaluating Alternative Course of Action

 In this step, the positive and negative aspects of each alternative need to be evaluated
in light of objectives to be achieved.

5
Lesson 1: What is the planning process? — MEASURE Evaluation

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  Every alternative is evaluated in terms of lower cost, lower risks, and higher returns,
within the planning premises and the availability of capital.

Example:
The mobile phone company will evaluate all the alternatives and weigh in the pros and cons
of all the alternatives stated, thereby performing a critical analysis on each alternative
available.
(5) Selecting One Best Alternative

 The best plan, which is the most profitable plan and with minimum negative effects, is
adopted and implemented.
 In such cases, the manager’s experience and judgment play an important role in
selecting the best alternative.
Example:
Mobile phone company selects to manufacture a pocket-friendly smartphone to cater its
audience and building a good reputation in the market.
(6) Implementing the Plan

 This is the step where other managerial functions come into the picture.
 This step is concerned with “DOING WHAT IS REQUIRED”.
 In this step, managers communicate the plan to the employees clearly to help convert
the plans into action.
 This step involves allocating the resources, organizing for labor, and purchase of
machinery.
Example:
Mobile phone company produces the final products in masses, to reduce its expenditure to
incur the minimal cost possible, allowing the firm to sell the products at a cheap price,
making the product a value for money smartphone.
(7) Follow Up Action

 Monitoring the plan constantly and taking feedback at regular intervals is called
follow-up.
 Monitoring of plans is very important to ensure that the plans are being implemented
according to the schedule.
 Regular checks and comparisons of the results with set standards are done to ensure
that objectives are achieved.
Example:
A proper feedback mechanism was developed by the mobile phone company throughout its
branches so that the actual customer response, revenue collection, employee response, etc.
could be known for delivering customer satisfaction, thereby building its brand name in the
smartphone industry.

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Factors Affecting the Planning Process

Planning enables managers to adjust the environment in which their companies operate
instead of only reacting to changes. Thus understanding various factors affecting the
Planning process can be vital for the organization to adapt to the susceptible changes. The
following factors would affect the planning function of management at the workplace:
Competition

Companies that do not jump quickly into a promising product or service market may be
outmaneuvered by their competitors. Planning may take a backseat to entering the
profitable, emerging market for a new product or service when a company wants to beat its
competitors. In some cases, the higher costs of completing the project before competitors
that come from a lack of thorough planning do not have negative effects on the business.
The higher profits that come from beating competitors to customers more than compensate
for them. However, a hurried entrance into a new market can cost the company money in
the long run and not make full use of managers’ planning abilities. Hence, before
performing the planning function of management, the organization must evaluate the
competitiveness present in the market and the current scenario.

Economic Conditions

The overall economy or health of the company’s industry also may negatively affect a
manager’s ability to plan. When sudden downturns occur, planning must be stopped,
adjusted, or taken in a new direction. If the economy improves significantly, managers may
scrap former plans and begin new ones. Managers must be flexible to changing outside
economic conditions even when they are planning a project of special interest to them as
planning can be done under the current economic conditions of the firm, and if that
changes, the managers must take the overall changes into account, and plan accordingly.
This can reduce the possibility of failure of plans as all the present factors are evaluated
thoroughly.

Availability of Time
Availability of Time can be a pivotal factor in the planning process. The managers need to
formulate the plans with the consideration of time as a resource. Thereby, the managers can
form plans which cater to the short-term or long-term goals of the organization.
Ability of Managers

As reported by American Intercontinental University , the foremost role of a manager is to

create plans to meet the company's objectives. Managers themselves also affect their
planning function. If they are not good planners in general or do not have the experience,
education, or background in planning required to be successful, they are more likely to plan
poorly. They may not fully commit to the planning process, as it can be complicated and
time-consuming.

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They also may sacrifice their visions of the long term for solving short-term problems.
Managers may rely too much on their planning departments to construct and organize the
vision for a project. The responsibility to plan still rests with them. Managers also may
focus too much on the variables they can control instead of the variables that they cannot,
such as the economy. Hence while planning, the managers must perceive all the key factors
associated with the process to ensure the successfulness of the plans formed. The ability of
managers is one of the major factors determining production control at the workplace.

Availability of Quality Information

When planning occurs, it is vital to have accurate information from consumers, the market,
the economy, competitors, and other sources. Managers who do not have accurate and
timely information are more likely to plan poorly and inadequately. Management
Information System (MIS) has become a vital tool in providing accurate and timely
information required for planning a project and developing a business strategy.

Assumptions –
Although it does not sound like a very important part of planning, it is nonetheless
equally important as any other step. You need to make some sound and logical
assumptions as you go along with the plan. What if your plan succeeds faster than
you expected? These are some circumstances not under your control. These
outcomes are fairly possible in any plan you make. Thus you need to have
contingencies for such assumptions in your planning. Hence there must be a
backup plan available at the disposal of managers to handle diligently the
unwanted circumstances. If one fails, they will immediately implement another.
This is only because of the assumption factor. If we simply assume, that the plan
will succeed, then we will have no contingencies if the plan fails.

Management and Executive time/input –

Planning needs a 360-degree approach. The executive and middle-level managers
of your company are the ones most in touch with the end customers. They know
the external environment and competition in and out. Thus taking regular inputs
from the ground level staff is important. Once the management has this input, they
can make the right decisions and form a plan to implement new strategies. This
new plan can bring better results for the company. However, gathering input from
middle and lower-level managers should be encouraged by the top management
itself.

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Commitment –
  There is no use in making a timetable or having an organizer if you don’t use it.
Similarly, there is no use in planning if you do not follow it. While planning, you
should not ignore the time and resource commitments you will have to make to
implement the plan. Furthermore, the top companies generally have a whole team
dedicated to the job of watching over the plans being implemented across the
company and whether or not these plans are taking effect. This planning team can
guide the various departments if they are straying away from the desired planning
output. Adhering to the committed plans can result in the smooth functioning of
the business.

Research Methodology:
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Aims and Objectives:
1. To assess the definition of planning in context with strategy and various planning process
Approaches key points:
2. To determine the direction of the organization, it is necessary to understand its current
position and the possible avenues through which it can pursue a particular course of
action.
3. There are many approaches to strategic planning, but typically either the situation-target
proposal
approach or the draw-see-think- plan approach is used to generate a plan’s
structure.
4. The primary purpose of planning is to create universal buy-in and understanding of the
objectives, and to put operational processes in place to guide the organization towards
their achievement.

Type of Data & Data Sources

The research has adopted the doctrinal method of research to explore the factors affecting the
planning process in an organization. During the commission of the project, the researchers
have gone through various primary and secondary sources such as websites of numerous
organizations, books, journals, articles, and research papers to learn about the factors
affecting
the planning process in an organization. This method helped the researcher gain a panoramic
view of the same.

Research Questions:

1. What is planning in an organization?

2. Why planning is important for an organization?
3. What are the main objectives of planning?
4. What are the basic concepts of planning and organization?
5. What are the principles of planning?

Sources of Data:

The researcher will be relying on secondary sources of data –

• Blogs
• Books
• Research papers
• Journals

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Hypotheses
The researcher is of the view that planning as a function of management holds
colossal relevance in present day world and understanding the concept of
factors affecting planning process through key insights will help to ascertain the
future uncertainties.

Limitations of Study:

The researchers and time limitations while completing this project. Many of the doctrinal
sources were beyond the access of the researcher too. The researcher is purely a beginner in
the field of study of fundamentals of management and law. It is the very first time that they
are making any research paper. They are having limited time for the project and the project
requires very extensive reading and research from various authentic sources. over a long
time.

Types of Plans: Data Analysis, Findings, and Discussions.

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Single-Use Plans, as the name suggests Standing Plans refers to the plan which
are the plans which are used only is designed to cater to the situations or
once, as these are developed to attain a issues that are encountered by the
specific goal, be it the accomplishment managers repeatedly in an
of an event, activity, or project. Hence, organization. These act as guidelines
they are designed in such a way that for the management to handle
the needs of the unique situation are problems that occur recurrently.
met effectively.

Single-use plan: Analysis

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Indian digital market giant- Flipkart

Single-use plan: big billion days and discounts on various occasions

These schemes are situation-specific and one-time use schemes by Flipkart.

Standing Plan Analysis:

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Flipkart’s standing plan:

In 2018 Flipkart merged with an international marketing giant Walmart and it

had also bought eBay India. It enhanced its market value and financial value.

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For learning and understanding about the different plans,

we conducted an online survey through Google forms and included three basic
questions:-

1. Name :

2. Type of business (small, medium, or big) :

3. What kind of plan do you Prefer?

We tell them about two basic different types of plans and What are the
outcomes?

We got a response from around 35 business persons.

80% of businesspeople chose

a single-use plan.

20% of them chose standing

plans.

Analysis & Discussion:

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As we can see 80% of business persons prefer single-use plans. As it can be
used on occasions, they get many opportunities to enhance their productivity.
This plan helps all three types of business (small, medium, and large) to gain
maximum profit in that short time.

Hence, as per our survey, we can conclude that a large number of

businesspeople bent towards the single-use plan.

Suggestions

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Planning plays a very important role in an organization. As seen above,
planning has both positive as well as negative implications on any organization.
Like we saw in the case of Flipkart wherein the single-use plan worked
wonders for the company. As per the data, 80 percent of businesspeople
preferred single-use plans.
The data indicated its feasibility for every type of business be it small, medium,
and large to gain maximum profit in a short time.
We would suggest to every business that as far as possible the practice of
proper planning while weighing its implication be practiced.
According to us, the positive implications of planning comprehensively
outweigh its negative implications.
Although the process of planning is time-consuming in the research, we found
that the business involved in substantive planning, we're able to arrive at a
sound decision.
Though planning involves huge cost and takes a lot of time, if, at the cost of
time and money, a business can optimize its profit and achieve its objective we
believe that time and cost is worth it.
The Flipkart example explains the same as well.

Our Learnings

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 Planning is an essential step what managers at all levels take. It requires
making decisions since it includes selecting a choice from alternative
ways of performance.

 Planning is done through the planning process which requires certain

steps that are:

 setting objectives
 developing planning premises
 identifying an alternate course of action
 evaluating an alternate course of action
 selecting one best alternative
 implementing the plan
 follow up action

 The planning process can be vital for the organization to adapt to the
susceptible changes. The following factors would affect the planning
function of management at the workplace:

 Competition
 Availability of time
 Ability of managers
 Assumption
 Commitment

 If an organization does planning it leads to the following positive results:

 Planning reduces the risks of uncertainty

 Planning reduces overlapping and wasteful activities
 Planning promotes innovative ideas
 Planning facilitates decision making
 Planning establishes standards for controlling

 Although planning does have certain limitations. The following are the
limitations of planning:

 Planning leads to rigidity

 Planning may not work in a dynamic environment

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  Planning reduces creativity
 Planning involves huge costs

 There are different types of planning i.e. single-use plan and standing
plan.

 Single-Use Plans are the ones that are used only once, as these are
developed to attain a specific goal, be it the accomplishment of an event,
activity, or project.
 Whereas Standing Plans refers to the plan which is designed to cater to
the situations or issues that are encountered by the managers repeatedly in
an organization

Mostly a large number of businesspeople bent towards the single-use plan.

 For planning to be implemented certain things need to be done which are:

 Developing an Awareness of the Present State

 Establishing Outcome Statements

 Premising

 Determining a Course of Action

 Formulating Supportive Plans

Planning, Implementation, and Controlling

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Managerial Implications

Following things can be done for the managerial function of the planning
process:

Developing an Awareness of the Present State

It is at this step that managers build the foundation on which they will develop
their plans. This foundation specifies an organization’s current status, pinpoints
its commitments, recognizes its strengths and weaknesses, and sets forth a
vision of the future. Because the past is instrumental in determining where an
organization expects to go in the future, managers at this point must understand
their organization and its history. It has been said— “The further you look
back, the further you can see ahead”.

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 Establishing Outcome Statements

The second step in the planning process consists of deciding “where the
organization is headed or is going to end up.” Ideally, this involves
establishing goals. Just as your goal in this course might be to get a certain
grade, managers at various levels in an organization’s hierarchy set goals.
For example, plans established by a university’s marketing department
curriculum committee must fit with and support the plans of the
department, which contribute to the goals of the business school, whose
plans must, in turn, support the goals of the university. Managers,
therefore, develop an elaborate network of organizational plans, to achieve
the overall goals of their organization.

Premising

In this step of the planning process, managers establish the premises, or

assumptions, on which they will build their action statements. The quality and
success of any plan depend on the quality of its underlying assumptions.
Throughout the planning process, assumptions about future events must be
brought to the surface, monitored, and updated.

Managers collect information by scanning their organization’s internal and

external environments. They use this information to make assumptions about
the likelihood of future events. As Kristin considers her four-year pursuit of her
biochemistry major, she anticipates that in addition to her savings and funds
supplied by her parents, she will need a full-time summer job for two summers
to cover the cost of her undergraduate education. Thus, she includes finding
full-time summer employment between her senior year of high school and her
freshman year and between her freshman and sophomore years of college as
part of her plan. The other two summers she will devote to an internship and
finding postgraduate employment—much to mom and dad’s delight! Effective
planning skills can be used throughout your life. The plan you develop to pay
for and complete your education is an especially important one.

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Determining a Course of Action

In this stage of the planning process, managers decide how to move from
their current position toward their goal (or toward their domain). They
develop an action statement that details what needs to be done, when, how,
and by whom. The course of action determines how an organization will
get from its current position to its desired future position. Choosing a
course of action involves determining alternatives by drawing on research,
experimentation, and experience; evaluating alternatives in light of how
well each would help the organization reach its goals or approach its
desired domain, and selecting a course of action after identifying and
carefully considering the merits of each alternative.

Formulating Supportive Plans

The planning process seldom stops with the adoption of a general plan.
Managers often need to develop one or more supportive or derivative plans to
bolster and explain their basic plan. Suppose an organization decides to switch
from a 5-day, 40-hour workweek (5/40) to a 4-day, 40-hour workweek (4/40) in
an attempt to reduce employee turnover. This major plan requires the creation
of several supportive plans. Managers might need to develop personnel policies
dealing with the payment of daily overtime. New administrative plans will be
needed for scheduling meetings, handling phone calls, and dealing with
customers and suppliers.

Planning, Implementation, and Controlling

After managers have moved through the five steps of the planning process and
have drawn up and implemented specific plans, they must monitor and maintain
their plans. Through the controlling function (to be discussed in greater detail
later in this chapter), managers observe ongoing human behavior and
organizational activity, compare it to the outcome and action statements
formulated during the planning process, and take corrective action if they
observe unexpected and unwanted deviations. Thus, planning and controlling
activities are closely interrelated (planning ➨ controlling ➨ planning . . .).
Planning feeds controlling by establishing the standards against which behavior
will be evaluated during the controlling process. Monitoring organizational
behavior (the control activity) provides managers with input that helps them
prepare for the upcoming planning period—it adds meaning to the awareness
step of the planning process.

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It has been noted on numerous occasions that many organizations that do plan
fail to recognize the importance of continuous learning. Their plans are either
placed on the shelf and collect dust or are created, implemented, and adhered to
without a systematic review and modification process. Frequently, plans are
implemented without first measuring where the organization currently stands so
that future comparisons and evaluations of the plan’s effectiveness cannot be
determined.

Managers assess the effects of planned action by integrating organizational

learning into the planning process. The cycle consists of four key stages:

(1) Plan—create the plan using the model discussed earlier.

(2) Do—implement the plan.

(3) Check—monitor the results of the planned course of action; organizational

learning about the effectiveness of the plan occurs at this stage.

(4) Act—act on what was learned, modify the plan, and return to the first stage
in the cycle, and the cycle begins again as the organization strives for
continuous learning and improvement.

BIBLIOGRAPHY

Books
Business Studies Textbook for class XII Part I

Websites
 What Factors Can Affect the Planning Function of Management? (chron.com)
 6 important factors in planning - Planning factors to consider (marketing91.com)

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 Characteristics of Planning (managementstudyguide.com)
 What is Planning? definition, characteristics, steps and importance - Business
Jargons
 What is Planning? - Definitions, Features, Nature, Advantages, Limitations
(yourarticlelibrary.com)

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