management. 5. 4. 3.
changes 2 1 2. 1 Planning steps meansPlanning which
is orplanning? A What is
overcoming
for Planning
managers. Planning
Planning the material
units business The
al Importance
management management
cconomy process. necd The companies regarding otherwise
happen". AccordingDefinitions
Planning ofPlanning ofobjectives.defined
wel l
again for plan
efforts PlanningNeed of the
its only importance nced
of for
execution. use whole
to includesfamily a is
divided
way
resources. Planning PlanningPlanning in
Planning business According According functiondecide is
Planning is is is planning unit. in and Planning consumer of reconcile the bridges to achieving
the determined a
various important important
also planning management
for Inone of of
operational future Koontz
a a of the the primary production intfunction.
o
Thus, rational survival fact,
direction
business Planning is is planning/planning
is is is the is
Planning as planning performed
managerial as a in needed nceded necded necdednceded
cxpectations is their to in to gap and objectives departmental course
planning
may but
to ol Philip George
the same.
not it the efficiency universally resources between
O'Donnell, process
function Business Similarly,
planning in visualization plan,
in as in infor
and is thein absence for unit.
as Kotler, of
be intelligent moremanagement of is the
rightly an Business order it order
order R clearly
by sales action
problems. is able competitive Planning acts survival Terry, of plan plans
than achievement clement and where managersmanagement as a
a alone of in to to to in
accepted with
"Planning other business
plan,
means to as so business: "Planning and an d for
treated
planning businós
achieve face and we for
solve is activity. mere a bringsManagement pre-requisite
a on. face and their "Planning to business achieving
and A not indicates in challenges growth new formulation are managementat
business prepare actual and unit
plan al as the in objcctives
is al
not adequate. thecoretical of
stability the the and is
managerial Ih
the there
management
certain management. problems/difficulties deciding is deciding levels.
and execution. on.somay
the wil is, pre-requisite objectives of business the where a planning
occupies a
world. its a plan. prepare A PLANNING
specific
remain
end now, to
crcated of functions busincss
utility wil good business and selecting It
It exercisc well and
be purposcd in wein is
in should
problems, rightly prosperity as the advance deciding
Thereafter the move Planning
itself on anddisorder,defined process decided
management. by well opportunities". want objcctive. a
unit present an d uni t pl an
paper lo changing to are firsttogether.
be treated or importance, elficient as activities related
supplemented paperwork, by developed in in relating go. what the position to prepares is to
ifbut confusion,
objectives. to is
universally an other what It take achieve
a An
a the objective process
suitable it as business environmental orderly makes to to individual
certainly management. It believed to of do, suitable in
a management.
Planning is aspects do facts planning master
a a
highly It Planning nccded due how thc of
particular
follow-up inefficiency, manner. in it to
by has accepted.
unit. It to an d management thanking
helps
professionalized growth of th
necessary e possible to be
steps plan may
suitable practical brings as life. do achieved function.
factors/forccs. future. the
The alsbrings o It It it for objcctive. prepare
steps the is is The making for it, tofor
also the of when th e t he
thoughtful follow-up utility safety wastage
factimproves plays It to thíngs Planning,
are unity
markets, following is a
executionnd process. action.whole a
that necded corc achieve
the and to plan
It
not to a to do taking It is
aspect and business large ofthe positive of of process using occur it, It is
unit.called for
taken
managersactions creative human purpose as the market desired in is a
performance points and of his
of majority it whole
suitable simple the
the
means Such
at role ensures whercby of whích
who journey a
different competition, justify assumptions
results". plan.starting business
on busincss operations. efforts and
value. in words, to
master
inthe is follow-up achieve
of the accuracy. woud to or
part busincss and diverts of the do point plan plan tour
levels a not it.
of It
is
, anizing:
ann e g
Staffing
phn
Limitations of Planning
Tune conuming and costly: It is argucd that planning is a lengthy process as it ínvolves collection of
recarch and analysis Similarly. planning is essentially the job of highly paid cxperts. As a result,
and cosily activilty. Only large firms can undertake planning duc to hcavy cost and lengthy planning
proccdure is a
involved
Di
2 Inefective due to environmental changes: Business environment changes frequently and plans are in it.
as per the hanges inthe situation through suitable modifications. However, such revision/modification required t be ayf nae
Createa
prblem Such adjustments in the opcrational plan are always costly, time-consuming.
Dangers of unreliable data: Planning nceds accurate data from internal and external sources. The
numher
depends on such accurate feedhack. If the information supplied by various departments is unreliable, the quality of
aely aflected Planning bascd on incomplete information may provetobe even dangerous. In bricf, plans planningwill
planning proces
process will be
be
data are not useful /eifeetive. Securing reliable information is always difficult and this brings
4
deficiencies in the entire planning
Encroachment on individual frecdom and initiative: Planning is a centralized I
exeCutedas per the directives issued. This affects individual frecdom and initative at theprocess.
Atthe lower levels,
lower levels.
levels atas instruments for the exccution of plan prepared by the top level managers. People are asked Emplovees atplans
the tare to be
to becomee
machine with littlescope for initiativeor indepcndent thinking.
Dclays actions: Planning is a lengthy process. As a result, the actions to be
not useful when quick decisions and actions are required. taken tor execution are delayed. Plannine is
6
Unsuitable to small firms: Small firms prefer to
planning rather costly and time-consuming. They prefer tofunction
face the
without long term comprehensive planning as they Fnd
actions are necessary in the case of certain business activities. Here,situations
long term
as they come. Similarly, quick decisions and promnt
7. Limitedpractical value: It is argucd that planning is too theoretical andplanning is not suitable.
has limited practical utility. Planning takes long
time for preparation and the situation changes when
the case of speculative business. It is also not useful such plans are ready for execution. Planning for example, is not suitable in
for taking quick benefits of business opportunities.
limited practical value. In brief, planning has
8. No guarantce of expected results: Planning is for achieving certain well
guarantee that the objectives will be achieved defined objectives. However, there is no
within the specific time limit by using planning
not be as per the expectation due to various rcasons. as a tool. Actual performance may
results and not the expected results. It gives benefits Thus
but
planning has an element of uncertainty. Planning leads to probable
planning will give 100 per cent positive/expected results.may not be exactly as per the expectation. Thus, there is no guarantee that
9
Generates frustration: At the lower levels,
difficulties, views and opinions. The targets may beplans are imposed on the employees. No
too ambitious and the employees may notconsideration is given to their
best efforts. This leads to frustration among employees at be able to achieve themin spite of
10. Involves huge paper work: Planning involves hugelower levels.
paper work in the preparation of master plan and departrmental plans.
11. Danger of overdoing: Sometimes, planners overload the work.
Elaborate reports are prepared without practical utility.
The advantages of planning are more
these limitations can be minimized. The important/significant while its limitations are few and also not of serious nature. Moreover,
practical utility of planning is universally accepted. It is not fair to give up
planning due to certain limitations. The better alternative is to make it more effective, purposeful and result the concept of
oriented.
Functions of Managenment or Management Functions
Management has been described as a social process involving responsibility for economical and
operationof an cnterprise in the fulfillment of given purposes. It is a dynamic process effective planning & regulation of
consisting of various elements and
activitics. These actívities are different fromoperative functions like marketing, finance,
cormmon to cach and every manger irrespective of his levcl or status. purchase etc. Rather these activities are
Different experts have classified functions of management. According to George& Jerry,
There are four fundamental functions of
management i.c. planning, organizing, actuating and controlling". According to Henry Fayol,
to organize, to command, & to control". Whereas Luther To manage is to forecast and plan,
Ciullick has given a keyword 'POSDCORB' where P stands for
Planning, O for Organizing, S for Staffing, D for Directing,Co for Co-ordination, R for reporting & B for Budgeting. But the
most widely accepted are functions of management given
Planning by KOONTZ and O'DONNEL ie.Planning, Organizing.
Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate
the function of management but practically these functions
Controlling Organizing are overlapping in nature i.e. they are highly inseparable.
Each function blends into the other & cach affects the
performance of others.
Staffing
, periods.
immediate, short term, medium term and long tem
ing: generating plans of action for
best possible manner.
particularly human resources, in the
Jrganizing: organizing the resources,
right jobs at right time.
Staffing: positioning right people people to lead and
coordinating): Communicate and coordinate with
motnating. communicating anxd
Directing (inciudes leadng. together to achieve the plans of the organization.
enthuse them to work effectively
corrections either in plans or
evaluating the progress against the plans and making
monitoring):
Controlling (incudes revicw and
in execution.
explained in some detail below.
Esch of these functions is
Planning advance the most
out a future course of action&deciding in in advance
of management. It deals with chalking
According to KOONTZ, "Planning is deciding future course of
It is the basic function goals. plan is a
actions for achievement of pre-determined where we are & where we want to be". A action to achievedesired
appropriate course of bridges the gap from Planning is determination of courses of
todo & how to do. It pre-determined goals. Planning isalso
- what to do, when problem solving & decision making. accomplishment of activity and it
actions. It is an exercise insystematic thinking about ways & means for is all pervasive, it is an intellectual
is a resources. It
goals. Thus. planningproper utilization of human &
non-human
necessary toensure uncertainties, risks,
confusion,
wastages etc.
helps in avoiding
stationsin
Steps in Planning Process usually adopted. These steps are like
approach is
which moves gradually and step by step below:
lengthy process planning process are as briefly explained
Planning is a process. Usual steps in the faced
the journey ofplanning understanding and classifying business problems
diagnosis of
clear the
problems: The planning process starts with
managers justifies the need for action. It is likeand, then, prepare
Classifying the or opportunities by Organisation first
1
business unit. Identification of problems Planners have to understand the problems ofthe
by a patient by his doctor. be
business environment. planners decide the overall objectives to
the health problem of aproblems in the light of the prevailing process, the precisely.
the planning be spelt out
a plan to deal with the the objectives: In this second stage in objectives and naturally objectives mustprofit, sales, production or
Determining welldefined terms of
2. for achieving certain objectives may be decided in
achieved. Planning is always entire planning process. Businessqualitative terms.
Objectives act as pillars of themay be defined in quantitative or
Objectives
market reputation.
systematic approach. objectives to be achieved. direction of efforts.
a)
Planning requires a setting ofgoals and various activities as well as indicate
Planning starts with the
rationale for undertaking to be achieved. a clear,
b) Objectives provide a attention of managers on the end results Therefore, objectives should be stated in
c) focus the
Moreover objectivesobjectives planning process.
d) provide nucleus to theundertaken are bound to be ineffective. wages given,
fact,
As amatter of language. Otherwise the activities For example, Number of menworking,manager,
e) quantitative terms. quality control
precise and unambiguous
possible, objectives should be stated in quantitative terms like performance of
Asfar as cannot be stated in
) such an objective
units produced, etc. But manager.
effectiveness of personnel specified in qualitative
terms.
Such goals should be acceptable, workable and achievable.information relating to problems facing the
g) be practical, to collect planning.
h Hence objectives should information and data: The planners have problems in depth and also for accuracy in proces
3.
Collecting complete necessary and useful for analyzing the updated and adequate data make planning
information is Reliable,
business unit. Such internal and external sources. interpreted
Information can be collected from information collected is analyzed and alternative plans.
At this stage, the preparing
classifying the information:facilitates use of information, while
result-oriented.
Analyzing and purposeful
4. conclusions. This the future business
systematically for drawing specific
discarded through such analysis. assumptions and predictions about relevant facts,
Irrelevant information can be premises are various expected to supply
Establishing planning premises: Planning activities. The planning premises are Planning premises reduce
for planning
act as background forecasts
indicated. Semi-controllable
prepared and future trends areControllable pemises. (b)
5
situation. Such premises the which are (a)
information and data on basis
of in number viz.,
planning process. Planning premises are three
uncertainties in the
Uncontrollable premises.
permises, and (c)
changes 2 1 2. 1 Planning steps meansPlanning which
is orplanning? A What is
overcoming
for Planning
managers. Planning
Planning the material
units business The
al Importance
management management
cconomy process. necd The companies regarding otherwise
happen". AccordingDefinitions
Planning ofPlanning ofobjectives.defined
wel l
again for plan
efforts PlanningNeed of the
its only importance nced
of for
execution. use whole
to includesfamily a is
divided
way
resources. Planning PlanningPlanning in
Planning business According According functiondecide is
Planning is is is planning unit. in and Planning consumer of reconcile the bridges to achieving
the determined a
various important important
also planning management
for Inone of of
operational future Koontz
a a of the the primary production intfunction.
o
Thus, rational survival fact,
direction
business Planning is is planning/planning
is is is the is
Planning as planning performed
managerial as a in needed nceded necded necdednceded
cxpectations is their to in to gap and objectives departmental course
planning
may but
to ol Philip George
the same.
not it the efficiency universally resources between
O'Donnell, process
function Business Similarly,
planning in visualization plan,
in as in infor
and is thein absence for unit.
as Kotler, of
be intelligent moremanagement of is the
rightly an Business order it order
order R clearly
by sales action
problems. is able competitive Planning acts survival Terry, of plan plans
than achievement clement and where managersmanagement as a
a alone of in to to to in
accepted with
"Planning other business
plan,
means to as so business: "Planning and an d for
treated
planning businós
achieve face and we for
solve is activity. mere a bringsManagement pre-requisite
a on. face and their "Planning to business achieving
and A not indicates in challenges growth new formulation are managementat
business prepare actual and unit
plan al as the in objcctives
is al
not adequate. thecoretical of
stability the the and is
managerial Ih
the there
management
certain management. problems/difficulties deciding is deciding levels.
and execution. on.somay
the wil is, pre-requisite objectives of business the where a planning
occupies a
world. its a plan. prepare A PLANNING
specific
remain
end now, to
crcated of functions busincss
utility wil good business and selecting It
It exercisc well and
be purposcd in wein is
in should
problems, rightly prosperity as the advance deciding
Thereafter the move Planning
itself on anddisorder,defined process decided
management. by well opportunities". want objcctive. a
unit present an d uni t pl an
paper lo changing to are firsttogether.
be treated or importance, elficient as activities related
supplemented paperwork, by developed in in relating go. what the position to prepares is to
ifbut confusion,
objectives. to is
universally an other what It take achieve
a An
a the objective process
suitable it as business environmental orderly makes to to individual
certainly management. It believed to of do, suitable in
a management.
Planning is aspects do facts planning master
a a
highly It Planning nccded due how thc of
particular
follow-up inefficiency, manner. in it to
by has accepted.
unit. It to an d management thanking
helps
professionalized growth of th
necessary e possible to be
steps plan may
suitable practical brings as life. do achieved function.
factors/forccs. future. the
The alsbrings o It It it for objcctive. prepare
steps the is is The making for it, tofor
also the of when th e t he
thoughtful follow-up utility safety wastage
factimproves plays It to thíngs Planning,
are unity
markets, following is a
executionnd process. action.whole a
that necded corc achieve
the and to plan
It
not to a to do taking It is
aspect and business large ofthe positive of of process using occur it, It is
unit.called for
taken
managersactions creative human purpose as the market desired in is a
performance points and of his
of majority it whole
suitable simple the
the
means Such
at role ensures whercby of whích
who journey a
different competition, justify assumptions
results". plan.starting business
on busincss operations. efforts and
value. in words, to
master
inthe is follow-up achieve
of the accuracy. woud to or
part busincss and diverts of the do point plan plan tour
levels a not it.
of It
is
, anizing:
ann e g
Staffing
phn
Limitations of Planning
Tune conuming and costly: It is argucd that planning is a lengthy process as it ínvolves collection of
recarch and analysis Similarly. planning is essentially the job of highly paid cxperts. As a result,
and cosily activilty. Only large firms can undertake planning duc to hcavy cost and lengthy planning
proccdure is a
involved
Di
2 Inefective due to environmental changes: Business environment changes frequently and plans are in it.
as per the hanges inthe situation through suitable modifications. However, such revision/modification required t be ayf nae
Createa
prblem Such adjustments in the opcrational plan are always costly, time-consuming.
Dangers of unreliable data: Planning nceds accurate data from internal and external sources. The
numher
depends on such accurate feedhack. If the information supplied by various departments is unreliable, the quality of
aely aflected Planning bascd on incomplete information may provetobe even dangerous. In bricf, plans planningwill
planning proces
process will be
be
data are not useful /eifeetive. Securing reliable information is always difficult and this brings
4
deficiencies in the entire planning
Encroachment on individual frecdom and initiative: Planning is a centralized I
exeCutedas per the directives issued. This affects individual frecdom and initative at theprocess.
Atthe lower levels,
lower levels.
levels atas instruments for the exccution of plan prepared by the top level managers. People are asked Emplovees atplans
the tare to be
to becomee
machine with littlescope for initiativeor indepcndent thinking.
Dclays actions: Planning is a lengthy process. As a result, the actions to be
not useful when quick decisions and actions are required. taken tor execution are delayed. Plannine is
6
Unsuitable to small firms: Small firms prefer to
planning rather costly and time-consuming. They prefer tofunction
face the
without long term comprehensive planning as they Fnd
actions are necessary in the case of certain business activities. Here,situations
long term
as they come. Similarly, quick decisions and promnt
7. Limitedpractical value: It is argucd that planning is too theoretical andplanning is not suitable.
has limited practical utility. Planning takes long
time for preparation and the situation changes when
the case of speculative business. It is also not useful such plans are ready for execution. Planning for example, is not suitable in
for taking quick benefits of business opportunities.
limited practical value. In brief, planning has
8. No guarantce of expected results: Planning is for achieving certain well
guarantee that the objectives will be achieved defined objectives. However, there is no
within the specific time limit by using planning
not be as per the expectation due to various rcasons. as a tool. Actual performance may
results and not the expected results. It gives benefits Thus
but
planning has an element of uncertainty. Planning leads to probable
planning will give 100 per cent positive/expected results.may not be exactly as per the expectation. Thus, there is no guarantee that
9
Generates frustration: At the lower levels,
difficulties, views and opinions. The targets may beplans are imposed on the employees. No
too ambitious and the employees may notconsideration is given to their
best efforts. This leads to frustration among employees at be able to achieve themin spite of
10. Involves huge paper work: Planning involves hugelower levels.
paper work in the preparation of master plan and departrmental plans.
11. Danger of overdoing: Sometimes, planners overload the work.
Elaborate reports are prepared without practical utility.
The advantages of planning are more
these limitations can be minimized. The important/significant while its limitations are few and also not of serious nature. Moreover,
practical utility of planning is universally accepted. It is not fair to give up
planning due to certain limitations. The better alternative is to make it more effective, purposeful and result the concept of
oriented.
Functions of Managenment or Management Functions
Management has been described as a social process involving responsibility for economical and
operationof an cnterprise in the fulfillment of given purposes. It is a dynamic process effective planning & regulation of
consisting of various elements and
activitics. These actívities are different fromoperative functions like marketing, finance,
cormmon to cach and every manger irrespective of his levcl or status. purchase etc. Rather these activities are
Different experts have classified functions of management. According to George& Jerry,
There are four fundamental functions of
management i.c. planning, organizing, actuating and controlling". According to Henry Fayol,
to organize, to command, & to control". Whereas Luther To manage is to forecast and plan,
Ciullick has given a keyword 'POSDCORB' where P stands for
Planning, O for Organizing, S for Staffing, D for Directing,Co for Co-ordination, R for reporting & B for Budgeting. But the
most widely accepted are functions of management given
Planning by KOONTZ and O'DONNEL ie.Planning, Organizing.
Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate
the function of management but practically these functions
Controlling Organizing are overlapping in nature i.e. they are highly inseparable.
Each function blends into the other & cach affects the
performance of others.
Staffing
, periods.
immediate, short term, medium term and long tem
ing: generating plans of action for
best possible manner.
particularly human resources, in the
Jrganizing: organizing the resources,
right jobs at right time.
Staffing: positioning right people people to lead and
coordinating): Communicate and coordinate with
motnating. communicating anxd
Directing (inciudes leadng. together to achieve the plans of the organization.
enthuse them to work effectively
corrections either in plans or
evaluating the progress against the plans and making
monitoring):
Controlling (incudes revicw and
in execution.
explained in some detail below.
Esch of these functions is
Planning advance the most
out a future course of action&deciding in in advance
of management. It deals with chalking
According to KOONTZ, "Planning is deciding future course of
It is the basic function goals. plan is a
actions for achievement of pre-determined where we are & where we want to be". A action to achievedesired
appropriate course of bridges the gap from Planning is determination of courses of
todo & how to do. It pre-determined goals. Planning isalso
- what to do, when problem solving & decision making. accomplishment of activity and it
actions. It is an exercise insystematic thinking about ways & means for is all pervasive, it is an intellectual
is a resources. It
goals. Thus. planningproper utilization of human &
non-human
necessary toensure uncertainties, risks,
confusion,
wastages etc.
helps in avoiding
stationsin
Steps in Planning Process usually adopted. These steps are like
approach is
which moves gradually and step by step below:
lengthy process planning process are as briefly explained
Planning is a process. Usual steps in the faced
the journey ofplanning understanding and classifying business problems
diagnosis of
clear the
problems: The planning process starts with
managers justifies the need for action. It is likeand, then, prepare
Classifying the or opportunities by Organisation first
1
business unit. Identification of problems Planners have to understand the problems ofthe
by a patient by his doctor. be
business environment. planners decide the overall objectives to
the health problem of aproblems in the light of the prevailing process, the precisely.
the planning be spelt out
a plan to deal with the the objectives: In this second stage in objectives and naturally objectives mustprofit, sales, production or
Determining welldefined terms of
2. for achieving certain objectives may be decided in
achieved. Planning is always entire planning process. Businessqualitative terms.
Objectives act as pillars of themay be defined in quantitative or
Objectives
market reputation.
systematic approach. objectives to be achieved. direction of efforts.
a)
Planning requires a setting ofgoals and various activities as well as indicate
Planning starts with the
rationale for undertaking to be achieved. a clear,
b) Objectives provide a attention of managers on the end results Therefore, objectives should be stated in
c) focus the
Moreover objectivesobjectives planning process.
d) provide nucleus to theundertaken are bound to be ineffective. wages given,
fact,
As amatter of language. Otherwise the activities For example, Number of menworking,manager,
e) quantitative terms. quality control
precise and unambiguous
possible, objectives should be stated in quantitative terms like performance of
Asfar as cannot be stated in
) such an objective
units produced, etc. But manager.
effectiveness of personnel specified in qualitative
terms.
Such goals should be acceptable, workable and achievable.information relating to problems facing the
g) be practical, to collect planning.
h Hence objectives should information and data: The planners have problems in depth and also for accuracy in proces
3.
Collecting complete necessary and useful for analyzing the updated and adequate data make planning
information is Reliable,
business unit. Such internal and external sources. interpreted
Information can be collected from information collected is analyzed and alternative plans.
At this stage, the preparing
classifying the information:facilitates use of information, while
result-oriented.
Analyzing and purposeful
4. conclusions. This the future business
systematically for drawing specific
discarded through such analysis. assumptions and predictions about relevant facts,
Irrelevant information can be premises are various expected to supply
Establishing planning premises: Planning activities. The planning premises are Planning premises reduce
for planning
act as background forecasts
indicated. Semi-controllable
prepared and future trends areControllable pemises. (b)
5
situation. Such premises the which are (a)
information and data on basis
of in number viz.,
planning process. Planning premises are three
uncertainties in the
Uncontrollable premises.
permises, and (c)
