The management is not always willing to cancel or modify your plans. A realistic look must be taken at the prospect of these new opportunities and SWOT analysisshould be done. Thus, Terry has defined planning in terms of future course of action i.e., “planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualisation and formalisation of proposed activities believed necessary to achieve desired result.”, McFarland has defined Planning as “a concept of executive action that embodies the skills of anticipating, influencing and controlling the nature and direction of change.”, Peter Drucker defined as “planning is the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectation through organised systematic feedback.”, In the words of Koontz and O’Donnell, “planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. 6 Qualities of any Great Plan for Achieving Success. Since the planning is a future course of action, mangers are able to define their objectives and get direction. Plagiarism Prevention 5. (viii) Rules, and (ix) Budgets. Steps involved in Planning. Deciding the planning period: Once the broad goals, planning premises and limitations are laid down, the next step is to decide the period of planning. Short term planning is the planning which covers less than two years. They are guides to action, rather than to thinking and they detail the exact manner in which certain activities must be accomplished. Image Guidelines 4. Planning does not stop changes in the environment, but gears the organisation to take suitable actions so that it is successful in achieving its objectives. Thus even though planning at all levels is important, since all levels are integrated into one, the strategic planning requires closer observation since it establishes the direction of the organisation. Communication cycle will not be completed. 7. 4 Levels of Strategy: Types of Strategic Alternatives. The strategic planning is the process of determining overall objectives of the organisation and the policies and strategies adopted to achieve those objective. The term formal means official and recognised. Any planning can be done officially to be followed or implemented. Meaning of Planning 2. Managers need to create broad objectives and mission statements as well as look after the day to day running of the company. Proper planning is made by unifying all areas on departments of the organisation. It consists of selecting the enterprise objectives polices, programmes, procedures and other means of achieving these objectives.”. Based upon time, the plan is classified as (i) Long Range Planning, (ii) Medium Range Planning and (iii) Short Range Planning. Resistance to change by organisational members. Copyright 10. It wills leads to coordinate and harmony among the departments is achieved. Account Disable 12. It involves selecting missions and objectives and the actions to achieve them. 6. It is the most basic of all the managerial functions. Proper planning helps to proper and effective utilisation of resources. Sufficient time to plan and implement. 5. Contingency Planning. Components 4. Fixing a time sequence for every operation is known as schedules. It is conducted by the top management, which include chief executive officer, president, vice-presidents, General Manger etc. It is a long range planning and may cover a time period of up to 10 years. Uploader Agreement. 3. Contingency plans are made when something unexpected happens or when something needs to be changed. Planning provides a framework for decision-making. Once such opportunities get recognized the managers can recognize the actions that need to be taken to realize them. It is considered as tactical planning. Objectives and Targets may not be achieved in full. This will lead to result in minimum cost of operations. Step # 7.Formulation of Supporting Plan: . Limitations. Components of Planning/Planning Techniques: Planning consists of several individual plans or components of planning, which are usually bound together. It should be clearly prescribed and understandable by all. 3. It may be referred to as a numberised programme. (ii) Objectives. They also have the task of polishing the top managements strategic plans. Prioritization Deciding how limited resources will be allocated often at the level of objectives. An informal plan is one, which is not in writing, but it is conceived in the mind of the manager. Content Guidelines 2. It refers to the course of action of work to be carried out in proper sequence for the purpose of achieving specific objectives. Performance & security by Cloudflare, Please complete the security check to access. All employees of the organisation can feel that we have taken this plan, if the plans are communicated to them. Non-Availability of Correct Information and Data: Planning is made by having information and data available. 3. Planning as a process involves the determination of future course of action, that is why an action, what action, how to take action, and when to take action. It brings about rationality in managerial approach and improvement in executive thinking. Standing plan is one, which is designed to be used over and over again. It is also called specific planning. Intangible changes reflect in changes in attitudes, values, cultures etc. Weakness can be spotted and rectified then and there. It improves the competitive strength of the organisation. We need to plan because the future is highly uncertain and no one can predict the future with 100% accuracy, as the conditions can change anytime. These plans are the responsibility of the lower management and are conducted by unit supervisors, foremen etc. Content Filtration 6. Formal planning is aims to determine and objectives of planning. Objectives, policies procedures, methods, rules and strategies are included in standing plans. Resources are identified for optimum utility through planning. 1. Tangible changes are in the form of changes in technology, market forces, and government regulations. • These may include plan for purchase of materials, production, labour, overhead expenses and so on. It is specific type of plan for achieving organisational goals. (iii) Policies. 6 Barriers to Goal Setting in Organization. Objectives are meaningful steps towards goals. Short-term plans are concerned with immediate future; it takes into account the available resources only and is concerned with the current operations of the business. A budget is a statement of expected results expressed in numerical term. The middle management will have a critical look at the resources available and they will determine the most effective and efficient mix of human, financial and material factors. Long-term planning usually converse a period of more than five years, mostly between five and fifteen years. Such objectives must be realistic. Very short period-left over things will be more. In an organisation there can be various derivative plans like planning for buying equipment, buying raw materials, recruiting and training personal, developing new product etc. Planning is the part of management concerned with creating procedures, rules and guidelines for achieving a stated objective. Planning is very important for successfulness and the effective performance of an organisation not only for organisations but also for individuals. They are usually the simplest type of plan. It helps the organisation to control the action by comparing budgetary and actual results. Koonte and O’Donnell defines “policies are general statements or undertakings which guide or channel thinking in decision-making of subordinates.” So, policies act as guides to thinking and action of subordinates in the organisations. Standing plan is also called routine plan. It keeps the business running. So planning will also define all the future functions of management. It, therefore, includes both the assessment of the future and the provision for it. This change is reflected in both tangible and intangible forms. Planning is present in all types of organisations, households, sectors, economies, etc. Planning helps to minimise cost by providing greater utilisation of the available resources. It basically deals with the total assessment of the organisation’s capabilities, its strengths and its weaknesses and an objective evaluation of the dynamic environment. Are able to define their objectives and mission statements as well as allocation resources... 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