Fundamentals of Effective Planning

Prepared By: Sutanu Maulik 9832281818

Definition
In simple words, planning is deciding in advance what action to take, how and when to take a particular action and who are the people to be involved in it. It involves anticipating the feature and consciously choosing the feature course of action.

Nature of Planning
It is goal oriented. Planning is an intellectual or rational process. Planning is a primary function. Planning is all-pervasive. Planning is forward looking. It is perpetual process. Planning is an integrated process. It involves choice.

Significance of Planning
Focuses attention on objectives. Offsets uncertainty and risk. Provides sense of direction. Provides guidelines for decision making. Increases organizational effectiveness. Provides efficiency on operations. Ensures better co-ordination. Facilitates control. Encourages innovation and creativity. Facilitates delegation.

Types of Plans 

By Level, Time and Scope. Level, Scope.  Mission statement is a statement of an organization¶s fundamental purpose. 
Strategic

Plans (Long term) are goals set by and for top management of the organization that address broad, general issues. Plans (Intermediate term) are set by and for middle managers; their focus is on how to managers; operationalize actions to strategic goals. 

Tactical 

Operational

Plans (Short Term) are set by and for lower-level managers to address issues lowerassociated with tactical goals.

Copyright © 2005 by Houghton Mifflin Company. All rights reserved.

3±5

Types of Plans««Contd. 

By Frequency of use. 

Single use plans: It is made for plans: achieving some specific goals and design to deal with a unique situation Standing Plans: It refers to specific Plans: actions which have been developed for dealing with recurring situations. 

STEPS IN THE PLANNING PROCESS
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Analyzing opportunities. Establishing objectives. Determining planning premises. Identifying alternatives. Evaluating available alternatives. Selecting the most appropriate alternatives. Implementing the plan. Reviewing the plan.

Prerequisites for Effective Plan 
       
Establishing the right climate for planning. Clear and specific objectives. Planning premises. Initiative at top level. Participation in planning process. Communication of planning elements. Integration of long term and short term plans. An open system approach. Management of information system.

Limitations of Planning 
       

Lack of accurate information. Time consuming process. Expensive. Inflexibility. Resistance to change. Environmental constrains. Lack of ability and commitment. False sense of security. Reluctance to establish goals.

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