PLANNING
Definitions of Planning
Different authors have given different
definitions of planning from time to time. The main definitions of planning are
as follows:
• According
to Alford and Beatt, "Planning is the thinking process, the organized
foresight, the vision based on fact and experience that is required for
intelligent action."
• According
to Theo Haimann, "Planning is deciding in advance what is to be done. When
a manager plans, he projects a course of action for further attempting to
achieve a consistent co-ordinate structure of operations aimed at the desired
results.
• According
to Billy E. Goetz, "Planning is fundamentally choosing and a planning
problem arises when an alternative course of action is discovered."
• According
to Koontz and O' Donnell, "Planning is an intellectual process, conscious
determination of course of action, the basing of decision on purpose, facts and
considered estimates."
• According
to Allen, "A plan is a trap to capture the future."laid
Meaning and Concept of Planning
In simple words, planning is deciding
in advance what is to be done, when where, how and by whom it is to be done.
Planning bridges the gap from where we are to where we want to go. It includes
the selection of objectives, policies, procedures and programmes from among
alternatives. A plan is a predetermined course of action to achieve a specified
goal. It is an intellectual process characterized by thinking before doing. It
is an attempt on the part of manager to anticipate the future in order to
achieve better performance. Planning is the primary function of management.
Objectives and policies
The objectives
The objectives are general parts of the
planning process. They are the end-results towards which all business
activities are directed. They are needed in every aspect where performance and
result directly and vitally affect the survival and success of the firm. In
other words, the objective of the firm justifies its existence.
Newman and Summer stated that "For
managerial purposes, it is useful to think of objectives as the results we want
to achieve. Objective covers firm's long-range plans specific departmental
goals and short-term individual assignment also".
The policies
Policies are specific guidelines and
constraints for managerial thinking on decision-making and action. Policies
provide the framework within which decision-makers are expected to operate
while making organizational decisions. They are the basic guides to be
consistent in decision-making.
Planning basics
Essentials of planning
Planning is not done off hand. It is
prepared after careful and extensive research. For a comprehensive business
plan, management has to: Clearly define the target/goal in writing. It should
be set by a person having authority. The goal should be realistic, specific,
acceptable to the organization, and easily measurable. Identify all the main
issues which need to be addressed. Review past performance. Decide budgetary
requirement. Focus on matters of strategic importance. What are requirements
and how will they be met? What will be the likely length of the plan and its
structure? Identify shortcomings in the concept and gaps. Strategies for
implementation. Review periodically.
Applications
In organizations
Planning is also a management process,
concerned with defining goals for future organizational performance and
deciding on the tasks and resources to be used in order to attain those goals.
To meet the goals, managers may develop plans such as a business plan or a
marketing plan. Planning always has a purpose. The purpose may be achievement
of certain goals or targets. The planning helps to achieve these goals or
target by using the available time and resources. To minimize the timing and
resources also require proper planning. The concept of planning is to identify
what the organization wants to do by using the four questions which are
"where are we today in terms of our business or strategy planning? Where
are we going? Where do we want to go? How are we going to get there?
In public policy
Planning refers to the practice and the
profession associated with the idea of planning an idea yourself (land use
planning, urban planning or spatial planning). In many countries, the operation
of a town and country planning system is often referred to as "planning"
and the professionals which operate the system are known as
"planners".
It is a conscious as well as
sub-conscious activity. It is "an anticipatory decision making
process" that helps in coping with complexities. It is deciding future
course of action from amongst alternatives. It is a process that involves
making and evaluating each set of interrelated decisions. It is selection of
missions, objectives and "translation of knowledge into action." A
planned performance brings better results compared to an unplanned one. A
manager's job is planning, monitoring and controlling. Planning and goal
setting are important traits of an organization. It is done at all levels of
the organization. Planning includes the plan, the thought process, action, and
implementation. Planning gives more power over the future. Planning is deciding
in advance what to do, how to do it, when to do it, and who should do it. This
bridges the gap from where the organization is to where it wants to be. The
planning function involves establishing goals and arranging them in logical
order.
Meaning and Concept of Planning
In simple words, planning is deciding
in advance what is to be done, when where, how and by whom it is to be done.
Planning bridges the gap from where we are to where we want to go. It includes
the selection of objectives, policies, procedures and programmes from among
alternatives. A plan is a predetermined course of action to achieve a specified
goal. It is an intellectual process characterized by thinking before doing. It
is an attempt on the part of manager to anticipate the future in order to
achieve better performance. Planning is the primary function of management.
Nature / Characteristics of Planning
The main characteristics or nature of
planning is given below
Planning is an Intellectual Process
Planning is an intellectual process of
thinking in advance. It is a process of deciding the future on the series of
events to follow. Planning is a process where a number of steps are to be taken
to decide the future course of action. Managers or executives have to consider
various courses of action, achieve the desired goals, go in details of the pros
and cons of every course of action and then finally decide what course of
action may suit them best.
Planning Contributes to the Objectives
Planning contributes positively in
attaining the objectives of the business enterprise. Since plans are there from
the very first stage of operation, the management is able to handle every
problem successfully. Plan try to set everything right. A purposeful, sound and
effective planning process knows how and when to tackle a problem. This leads
to success. Objectives thus are easily achieved.
Planning is a Primary Function of
Management
Planning precedes other functions in
the management process. Certainly, setting of goals to be achieved and lines of
action to be followed precedes the organization, direction, supervision and
control. No doubt, planning precedes other functions of management. It is
primary requisite before other managerial functions step in. But all functions
are inter-connected. It is mixed in all managerial functions but there too it
gets precedence. It thus gets primary everywhere.
A continuous Process
Planning is a continuous process and a
never ending activity of a manager in an enterprise based upon some assumptions
which may or may not come true in the future. Therefore, the manager has to go
on modifying revising and adjusting plans in the light of changing
circumstances. According to George R. Terry, "Planning is a continuous
process and there is no end to it. It involves continuous collection,
evaluation and selection of data, and scientific investigation and analysis of
the possible alternative courses of action and the selection of the best
alternative.
Planning Pervades Managerial Activities
From primary of planning follows
pervasiveness of planning. It is the function of every managerial personnel.
The character, nature and scope of planning may change fro personnel to
personnel but the planning as an action remains intact. According to Billy E.
Goetz, "Plans cannot make an enterprise successful. Action is required,
the enterprise must operate managerial planning seeks to achieve a consistent,
coordinated structure of operations focused on desired trends. Without plans,
action must become merely activity producing nothing but chaos."
Meaning and Concept of Planning
In simple words, planning is deciding
in advance what is to be done, when where, how and by whom it is to be done.
Planning bridges the gap from where we are to where we want to go. It includes
the selection of objectives, policies, procedures and programmes from among
alternatives. A plan is a predetermined course of action to achieve a specified
goal. It is an intellectual process characterized by thinking before doing. It
is an attempt on the part of manager to anticipate the future in order to
achieve better performance. Planning is the primary function of management.
CHARACTERISTICS
________________________________________
The main characteristics or nature of
planning is given below:
Planning is an Intellectual Process
Planning is an intellectual process of
thinking in advance. It is a process of deciding the future on the series of
events to follow. Planning is a process where a number of steps are to be taken
to decide the future course of action. Managers or executives have to consider
various courses of action, achieve the desired goals, go in details of the pros
and cons of every course of action and then finally decide what course of
action may suit them best.
Contributes Planning to the Objectives
Planning contributes positively in
attaining the objectives of the business enterprise. Since plans are there from
the very first stage of operation, the management is able to handle every
problem successfully. Plan try to set everything right. A purposeful, sound and
effective planning process knows how and when to tackle a problem. This leads
to success. Objectives thus are easily achieved.
Function of Management Planning is a
Primary
Planning precedes other functions in
the management process. Certainly, setting of goals to be achieved and lines of
action to be followed precedes the organization, direction, supervision and
control. No doubt, planning precedes other functions of management. It is primary
requisite before other managerial functions step in. But all functions are
inter-connected. It is mixed in all managerial functions but there too it gets
precedence. It thus gets primary everywhere.
A continuous Process
Planning is a continuous process and a
never ending activity of a manager in an enterprise based upon some assumptions
which may or may not come true in the future. Therefore, the manager has to go
on modifying revising and adjusting plans in the light of changing
circumstances. According to George R. Terry, "Planning is a continuous
process and there is no end to it. It involves continuous collection,
evaluation and selection of data, and scientific investigation and analysis of
the possible alternative courses of action and the selection of the best
alternative.
Planning Pervades Managerial Activities
From primary of planning follows
pervasiveness of planning. It is the function of every managerial personnel.
The character, nature and scope of planning may change fro personnel to
personnel but the planning as an action remains intact. According to Billy E.
Goetz, "Plans cannot make an enterprise successful. Action is required,
the enterprise must operate managerial planning seeks to achieve a consistent,
coordinated structure of operations focused on desired trends. Without plans,
action must become merely activity producing nothing but chaos."
Role, Significance, Importance &
Advantages of Planning
________________________________________
An organisation without planning is
like a sailboat minus its rudder. Without planning, organisation, are subject
to the winds of organizational change. Planning is one of the most important
and crucial functions of management. According to Koontz and O'Donnell,
"Without planning business becomes random in nature and decisions become
meaningless and adhoc choices." According to Geroge R. Terry,
"Planning is the foundation of most successful actions of any
enterprise." Planning becomes necessary due to the following reasons:
Reduction of Uncertainty
Future is always full of uncertainties.
A business organisation has to function in these uncertainties. It can operate
successfully if it is able to predict the uncertainties. Some of the
uncertainties can be predicted by undertaking systematic. Some of the
uncertainties can be predicted by undertaking systematic forecasting. Thus,
planning helps in foreseeing uncertainties which may be caused by changes in
technology, fashion and taste of people, government rules and regulations, etc.
Better Utilization of Resources
An important advantage of planning is
that it makes effective and proper utilization of enterprise resources. It
identifies all such available resources and makes optimum use of these
resources.
Increases Organizational Effectiveness
Planning ensures organizational
effectiveness. Effectiveness ensures that the organisation is in a position to
achieve its objective due to increased efficiency of the organisation.
Reduces the Cost of Performance
Planning assists in reducing the cost
of performance. It includes the selection of only one course of action amongst
the different courses of action that would yield the best results at minimum
cost. It removes hesitancy, avoids crises and chaos, eliminates false steps and
protects against improper deviations.
Concentration on Objectives
It is a basic characteristic of
planning that it is related to the organizational objectives. All the
operations are planned to achieve the organizational objectives. Planning
facilitates the achievement of objectives by focusing attention on them. It
requires the clear definition of objectives so that most appropriate
alternative courses of action are chosen.
Helps in Co-ordination
Good plans unify the interdepartmental
activity and clearly lay down the area of freedom in the development of various
sub-plans. Various departments work in accordance with the overall plans of the
organisation. Thus, there is harmony in the organisation, and duplication of
efforts and conflict of jurisdiction are avoided.
Makes Control Effective
Planning and control are inseparable in
the sense that unplanned action cannot be controlled because control involves
keeping activities on the predetermined course by rectifying deviations from
plans. Planning helps control by furnishing standards of performance.
Encouragement to Innovation
Planning helps innovative and creative
thinking among the managers because many new ideas come to the mind of a
manager when he is planning. It creates
a forward-looking attitude among the managers.
Increase in Competitive Strength
Effective planning gives a competitive
edge to the enterprise over other enterprises that do not have planning or have
ineffective planning. This is because planning may involve expansion of
capacity, changes in work methods, changes in quality, anticipation of tastes
and fashions of people and technological changes etc.
Delegation is Facilitated
A good plan always facilitates
delegation of authority in a better way to subordinates.
Steps involved in Planning
________________________________________
Planning is a process which embraces a
number of steps to be taken. Planning is an intellectual exercise and a
conscious determination of courses of action. Therefore, it requires courses of
action. The planning process is valid for one organisation and for one plan,
may not be valid for other organizations or for all types of plans, because
various factors that go into planning process may differ from organisation to
organisation or from plan to plan. For example, planning process for a large
organisation may not be the same for a small organisation. However, the major
steps involved in the planning process of a major organisation or enterprise
are as follows:
Establishing objectives
The first and primary step in planning
process is the establishment of planning objectives or goals. Definite
objectives, in fact, speak categorically about what is to be done, where to
place the initial emphasis and the things to be accomplished by the network of
policies, procedures, budgets and programmes, the lack of which would
invariably result in either faulty or ineffective planning.
It needs mentioning in this connection
that objectives must be understandable and rational to make planning effective.
Because the major objective, in all enterprise, needs be translated into
derivative objective, accomplishment of enterprise objective needs a concrete
endeavor of all the departments.
Establishment of Planning Premises
Planning premises are assumptions about
the future understanding of the expected situations. These are the conditions
under which planning activities are to be undertaken. These premises may be
internal or external. Internal premises are internal variables that affect the
planning. These include organizational polices, various resources and the
ability of the organisation to withstand the environmental pressure. External
premises include all factors in task environment like political, social
technological, competitors' plans and actions, government policies, market
conditions. Both internal factors should be considered in formulating plans. At
the top level mainly external premises are considered. As one moves downward,
internal premises gain importance.
Determining Alternative Courses
The next logical step in planning is to
determine and evaluate alternative courses of action. It may be mentioned that
there can hardly be any occasion when there are no alternatives. And it is most
likely that alternatives properly assessed may prove worthy and meaningful. As
a matter of fact, it is imperative that alternative courses of action must be
developed before deciding upon the exact plan.
Evaluation of Alternatives
Having sought out the available
alternatives along with their strong and weak points, planners are required to
evaluate the alternatives giving due weight-age to various factors involved,
for one alternative may appear to be most profitable involving heavy cash
outlay whereas the other less profitable but involve least risk. Likewise,
another course of action may be found contributing significantly to the company's
long-range objectives although immediate expectations are likely to go
unfulfilled.
Evidently, evaluation of alternative is
a must to arrive at a decision. Otherwise, it would be difficult to choose the
best course of action in the perspective of company needs and resources as well
as objectives laid down.
Selecting a Course of Action
The fifth step in planning is selecting
a course of action from among alternatives. In fact, it is the point of
decision-making-deciding upon the plan to be adopted for accomplishing the
enterprise objectives.
Formulating Derivative Plans
To make any planning process complete
the final step is to formulate derivative plans to give effect to and support
the basic plan. For example, if Indian Airlines decide to run Jumbo Jets between
Delhi an Patna, obliviously, a number of derivative plans have to be framed to
support the decision, e.g., a staffing plan, operating plans for fuelling,
maintenance, stores purchase, etc. In other words, plans do not accomplish
themselves. They require to be broken down into supporting plans. Each manager
and department of the organisation is to contribute to the accomplishment of
the master plan on the basis of the derivative plans.
Establishing Sequence of Activities
Timing an sequence of activities are
determined after formulating basic and derivative plans, so that plans may be
put into action. Timing is an essential consideration in planning. It gives
practical shape and concrete form to the programmes. The starting and finishing
times are fixed for each piece of work, so as to indicate when the within what
time that work is to be commenced and completed. Bad timing of programmes
results in their failure. To maintain a symmetry of performance and a smooth
flow of work, the sequence of operation shaped be arranged carefully by giving
priorities to some work in preference to others. Under sequence it should be
decided as to who will don what and at what time.
Feedback or Follow-up Action
Formulating plans and chalking out of
programmes are not sufficient, unless follow-up action is provided to see that
plans so prepared and programmes chalked out are being carried out in
accordance with the plan and to see whether these are not kept in cold storage.
It is also required to see whether the plan is working well in the present
situation. If conditions have changed, the plan current plan has become
outdated or inoperative it should be replaced by another plan. A regular
follow-up is necessary and desirable from effective implementation and
accomplishment of tasks assigned.
The plan should be communicated to all
persons concerned in the organisation. Its objectives and course of action must
be clearly defined leaving no ambiguity in the minds of those who are
responsible for its execution. Planning is effective only when the persons
involved work in a team spirit and all are committed to
Types of Plans
Plans commit individuals, departments,
organizations, and the resources of each to specific actions for the future.
Effectively designed organizational goals fit into a hierarchy so that the
achievement of goals at low levels permits the attainment of high-level goals.
This process is called a means-ends chain because low-level goals lead to
accomplishment of high-level goals.
Three major types of plans can help
managers achieve their organization's goals: strategic, tactical, and
operational. Operational plans lead to the achievement of tactical plans, which
in turn lead to the attainment of strategic plans. In addition to these three
types of plans, managers should also develop a contingency plan in case their
original plans fail.
Operational plans
The specific results expected from
departments, work groups, and individuals are the operational goals. These
goals are precise and measurable. “Process 150 sales applications each week” or
“Publish 20 books this quarter” are examples of operational goals.
An operational plan is one that a
manager uses to accomplish his or her job responsibilities. Supervisors, team
leaders, and facilitators develop operational plans to support tactical plans
(see the next section). Operational plans can be a single-use plan or an
ongoing plan.
• Single-use
plans apply to activities that do not recur or repeat. A one-time occurrence,
such as a special sales program, is a single-use plan because it deals with the
who, what, where, how, and how much of an activity. A budget is also a
single-use plan because it predicts sources and amounts of income and how much
they are used for a specific project.
• Continuing
or ongoing plans are usually made once and retain their value over a period of
years while undergoing periodic revisions and updates. The following are
examples of ongoing plans:
• A
policy provides a broad guideline for managers to follow when dealing with
important areas of decision making. Policies are general statements that
explain how a manager should attempt to handle routine management
responsibilities. Typical human resources policies, for example, address such
matters as employee hiring, terminations, performance appraisals, pay
increases, and discipline.
• A
procedure is a set of step-by-step directions that explains how activities or
tasks are to be carried out. Most organizations have procedures for purchasing
supplies and equipment, for example. This procedure usually begins with a
supervisor completing a purchasing requisition. The requisition is then sent to
the next level of management for approval. The approved requisition is
forwarded to the purchasing department. Depending on the amount of the request,
the purchasing department may place an order, or they may need to secure
quotations and/or bids for several vendors before placing the order. By
defining the steps to be taken and the order in which they are to be done,
procedures provide a standardized way of responding to a repetitive problem.
• A
rule is an explicit statement that tells an employee what he or she can and
cannot do. Rules are “do” and “don't” statements put into place to promote the
safety of employees and the uniform treatment and behavior of employees. For
example, rules about tardiness and absenteeism permit supervisors to make
discipline decisions rapidly and with a high degree of fairness.
Tactical plans
A tactical plan is concerned with what
the lower level units within each division must do, how they must do it, and
who is in charge at each level. Tactics are the means needed to activate a
strategy and make it work.
Tactical plans are concerned with
shorter time frames and narrower scopes than are strategic plans. These plans
usually span one year or less because they are considered short-term goals.
Long-term goals, on the other hand, can take several years or more to
accomplish. Normally, it is the middle manager's responsibility to take the
broad strategic plan and identify specific tactical actions.
Strategic plans
A strategic plan is an outline of steps
designed with the goals of the entire organization as a whole in mind, rather
than with the goals of specific divisions or departments. Strategic planning
begins with an organization's mission.
Strategic plans look ahead over the
next two, three, five, or even more years to move the organization from where
it currently is to where it wants to be. Requiring multilevel involvement,
these plans demand harmony among all levels of management within the
organization. Top-level management develops the directional objectives for the
entire organization, while lower levels of management develop compatible
objectives and plans to achieve them. Top management's strategic plan for the
entire organization becomes the framework and sets dimensions for the lower
level planning.
Contingency plans
Intelligent and successful management
depends upon a constant pursuit of adaptation, flexibility, and mastery of
changing conditions. Strong management requires a “keeping all options open”
approach at all times — that's where contingency planning comes in.
Contingency planning involves
identifying alternative courses of action that can be implemented if and when
the original plan proves inadequate because of changing circumstances.
Keep in mind that events beyond a
manager's control may cause even the most carefully prepared alternative future
scenarios to go awry. Unexpected problems and events frequently occur. When
they do, managers may need to change their plans. Anticipating change during
the planning process is best in case things don't go as expected. Management
can then develop alternatives to the existing plan and ready them for use when
and if circumstances make these alternatives appropriate.
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