UNIT-2
PLANNING
Meaning:
Planning is the function of management that involves setting objectives and
determining a course of action for achieving those objectives. Planning requires that
managers be aware of environmental conditions facing their organization and forecast
future conditions.
Definition
“Planning is deciding in advance what to do, how to do it, when to do it, and who
is to do it. Planning bridges the gap from where we are to where we want to go. It makes
it possible for things to occur which would not otherwise happen.” -Koontz and
O’Donnell
Planning is the process of deciding in advance what is to be done, what is to be
done ,who is to do it and how it is to be done and when it is to be done. The determination
of a course of action to achieve the desired result and bridges the gap from where we are
to, Where we want to go. Planning is the intellectually demanding process it requires the
conscious determination of course of action and bases of decision on purpose knowledge.
Nature of Planning
Planning is an intellectual activity- to decide the things to be done in future. It involves
use of mental skills for the achievement of group objectives. Planning involves selection
among alternative. Planning is a choice activity planning process involves mining of
alternatives in selection of the best alternative
Planning is forward-looking planning -means looking ahead it is carried out to achieve
some objectives in future. It may involve forecasting of future event such as customer
demand, competition, and government policies.
Planning related to objective- every plan that comprised the objective to be attained in
the future and these steps necessary to reach them managerial planning seeks to achieve
a consistent coordinator, structure of operation, focused on desire ends.
Planning is the most basic of all management functions- Managerial operation and
organizing, staffing, leading and controlling are design to support the accomplishment of
organisation objective planning location of all the other managerial function
Planning is a necessary function of management- planning is a function of all
managers all the character and planning will play very with their nature of policy and plan
outlined by the superior.
,Significance of planning
Focus is on attention on objective: - All planning is directed towards achieving the
Enterprises objective and focuses attention on these objectives.
Planning ensures economic cooperation- Planning needs lots of mental exercise,
which is directed towards achieving efficient operation in the Enterprise substitute joint
directed efforts for a co-ordinate piecemeal activity this helps in better utilization of
resources and then minimizing costs.
Reduces uncertainty -planning helps in reducing uncertainty of future because it
involves anticipation of each element effective planning is a result of deliberate thinking
based on forecast and figures.
Facilitate control planning helps the manager and performing their function of control
planning and control are inseparable in the sense that unplanned action cannot be
completed the predetermined deviations from plan.
Improve competitive strength effective planning gives competitive edge to the
enterprise over other income Luck now plan other ineffective Planning
Improve motivation a good planning system ensure your participation of all managers
which improve their motivation it improves the motivation of work and because they
know clear what is to be expected of them.
Types of Planning
Corporate planning – corporate planning is defined as a systematic and comprehensive
process of planning taking into account of resources and capabilities of the organisation
and the environment within which it has to be operate it will it usually covers a long
period of 5 years or even more than this.
Divisional planning (middle level) -divisional planning related a particular division or
department wise that the objectives policy and program of a particular division or
department in tune with the corporate plan of the Enterprise
Sectional planning( lower level) -sectional all over planning is Highly Effective as it is
done to achieve the Divisional objective it focus is to lay down retail plan for a particular
unit for the day to take guide of personal working there
Strategic planning- strategic planning is the process of deciding the objectives of the
organisation and decide the manner in which the resources of the enterprises are to be
deployed to realize the objective in the uncertain environment. It covers a long period
depending on the nature of Business, top-level management does Environment .It, and it
is based on organisation objective
Operational planning – operational planning confirm the efficient use of the sources
already located update the development of control mechanism for the efficient Operation
for that organisational objectives are achieved. It covers a short run period after one year
, it is done by the middle level and lower level and focus is on specific departments and
functional area of this business.
Tactical planning -these plans are made for short-term moves and necessary for the
strategic plans in a given first forms objective and they are required to meet the challenge
of sudden change in the environment .For example tactical plans are made to handle
change in demand of your company product because of entry of a competitor.
According to time span of planning
Long run planning -long range planning is the process of establishing long-term NGOs
working out strategic policy and program to achieve the in other words long range
planning sets long-term goal for the business it covers a period of ranging from 5 years to
20 years.
Medium range planning- intermediate plans are made to support the now they may
relate to development of a new product or market and publicity increasing return on
investment from the existing product for market. Medium term planning for the period of
more than one year but less than five years.
Short range planning- short range planning relate to period of less than one year. These
plans are made to short terms goals for instance training of workforce, product design.
Limitations of Planning
Following are the limitations of planning:
1. Rigidity: Planning brings rigidity to work as employees are required to strictly follow
pre-determined policies. There is a tendency that by strictly following these
predetermined policies, people become more concerned about complying with these
plans rather than achieving the goals. Sometimes planning discourages individual
initiative and creativity. It restricts their freedom and new opportunities are ignored.
2. Planning may not Work in a Dynamic Environment: Planning has to operate in
an external environment, such as government policies, technology, etc., which is beyond
the control of the organization. In any situation, changes in the environment make the
plan inoperative and ineffective. So planning does not provide a positive result when such
changes are not accurately forecasted.
3. Planning Reduces Creativity: Planning involves the determination of policies and
procedures in advance. Employees are required to strictly follow them, and deviations are
considered to be highly undesirable. As a result, employees do not show their skills, and
it reduces their initiative and creativity.
4. Planning Involves Huge Costs: Planning is an expensive process because a lot of
money is spent on gathering and analyzing information. It also involves the cost of
experts, as experts are paid for planning. Efforts should be made to benefit from the
PLANNING
Meaning:
Planning is the function of management that involves setting objectives and
determining a course of action for achieving those objectives. Planning requires that
managers be aware of environmental conditions facing their organization and forecast
future conditions.
Definition
“Planning is deciding in advance what to do, how to do it, when to do it, and who
is to do it. Planning bridges the gap from where we are to where we want to go. It makes
it possible for things to occur which would not otherwise happen.” -Koontz and
O’Donnell
Planning is the process of deciding in advance what is to be done, what is to be
done ,who is to do it and how it is to be done and when it is to be done. The determination
of a course of action to achieve the desired result and bridges the gap from where we are
to, Where we want to go. Planning is the intellectually demanding process it requires the
conscious determination of course of action and bases of decision on purpose knowledge.
Nature of Planning
Planning is an intellectual activity- to decide the things to be done in future. It involves
use of mental skills for the achievement of group objectives. Planning involves selection
among alternative. Planning is a choice activity planning process involves mining of
alternatives in selection of the best alternative
Planning is forward-looking planning -means looking ahead it is carried out to achieve
some objectives in future. It may involve forecasting of future event such as customer
demand, competition, and government policies.
Planning related to objective- every plan that comprised the objective to be attained in
the future and these steps necessary to reach them managerial planning seeks to achieve
a consistent coordinator, structure of operation, focused on desire ends.
Planning is the most basic of all management functions- Managerial operation and
organizing, staffing, leading and controlling are design to support the accomplishment of
organisation objective planning location of all the other managerial function
Planning is a necessary function of management- planning is a function of all
managers all the character and planning will play very with their nature of policy and plan
outlined by the superior.
,Significance of planning
Focus is on attention on objective: - All planning is directed towards achieving the
Enterprises objective and focuses attention on these objectives.
Planning ensures economic cooperation- Planning needs lots of mental exercise,
which is directed towards achieving efficient operation in the Enterprise substitute joint
directed efforts for a co-ordinate piecemeal activity this helps in better utilization of
resources and then minimizing costs.
Reduces uncertainty -planning helps in reducing uncertainty of future because it
involves anticipation of each element effective planning is a result of deliberate thinking
based on forecast and figures.
Facilitate control planning helps the manager and performing their function of control
planning and control are inseparable in the sense that unplanned action cannot be
completed the predetermined deviations from plan.
Improve competitive strength effective planning gives competitive edge to the
enterprise over other income Luck now plan other ineffective Planning
Improve motivation a good planning system ensure your participation of all managers
which improve their motivation it improves the motivation of work and because they
know clear what is to be expected of them.
Types of Planning
Corporate planning – corporate planning is defined as a systematic and comprehensive
process of planning taking into account of resources and capabilities of the organisation
and the environment within which it has to be operate it will it usually covers a long
period of 5 years or even more than this.
Divisional planning (middle level) -divisional planning related a particular division or
department wise that the objectives policy and program of a particular division or
department in tune with the corporate plan of the Enterprise
Sectional planning( lower level) -sectional all over planning is Highly Effective as it is
done to achieve the Divisional objective it focus is to lay down retail plan for a particular
unit for the day to take guide of personal working there
Strategic planning- strategic planning is the process of deciding the objectives of the
organisation and decide the manner in which the resources of the enterprises are to be
deployed to realize the objective in the uncertain environment. It covers a long period
depending on the nature of Business, top-level management does Environment .It, and it
is based on organisation objective
Operational planning – operational planning confirm the efficient use of the sources
already located update the development of control mechanism for the efficient Operation
for that organisational objectives are achieved. It covers a short run period after one year
, it is done by the middle level and lower level and focus is on specific departments and
functional area of this business.
Tactical planning -these plans are made for short-term moves and necessary for the
strategic plans in a given first forms objective and they are required to meet the challenge
of sudden change in the environment .For example tactical plans are made to handle
change in demand of your company product because of entry of a competitor.
According to time span of planning
Long run planning -long range planning is the process of establishing long-term NGOs
working out strategic policy and program to achieve the in other words long range
planning sets long-term goal for the business it covers a period of ranging from 5 years to
20 years.
Medium range planning- intermediate plans are made to support the now they may
relate to development of a new product or market and publicity increasing return on
investment from the existing product for market. Medium term planning for the period of
more than one year but less than five years.
Short range planning- short range planning relate to period of less than one year. These
plans are made to short terms goals for instance training of workforce, product design.
Limitations of Planning
Following are the limitations of planning:
1. Rigidity: Planning brings rigidity to work as employees are required to strictly follow
pre-determined policies. There is a tendency that by strictly following these
predetermined policies, people become more concerned about complying with these
plans rather than achieving the goals. Sometimes planning discourages individual
initiative and creativity. It restricts their freedom and new opportunities are ignored.
2. Planning may not Work in a Dynamic Environment: Planning has to operate in
an external environment, such as government policies, technology, etc., which is beyond
the control of the organization. In any situation, changes in the environment make the
plan inoperative and ineffective. So planning does not provide a positive result when such
changes are not accurately forecasted.
3. Planning Reduces Creativity: Planning involves the determination of policies and
procedures in advance. Employees are required to strictly follow them, and deviations are
considered to be highly undesirable. As a result, employees do not show their skills, and
it reduces their initiative and creativity.
4. Planning Involves Huge Costs: Planning is an expensive process because a lot of
money is spent on gathering and analyzing information. It also involves the cost of
experts, as experts are paid for planning. Efforts should be made to benefit from the
