The Unit 2 : Planning.
Planning is primary function in the management process. It is the first and foremost functions because it planning that leads to other functions of management. In simple term planning is about deciding
- what to do (determining action(s))
- when to do ( determines timing for those actions)
- how to to ( determining a method or approach)
- who has to do ( assigning the job)
The Nature of planning
Given that all above activities are part of planning process - we determine the nature of planning process. It is evident that planning is
- an intellectual process i.e the planner uses his/her experience, intellect, education in planning
- a decision-making process- generating choices, evaluating them, choosing one and committing
- a continuous process- planning has to be carried out in real-world- any change in real-world causes changes in planing process
- adopts principle of navigational changes- planning process accommodates changes in various forms such as modification, complete changes
Why planning is necessary?
Planning has the following benefits
- It avoids risks and uncertainty- thinking carried out during planning anticipates risks and and finds round about measures to minimize them
- it leads to success- a planned venture is always better than one that is based on intuition
- it helps to focus on organizational goals- planning is all about determining business goals
- it facilitates controlling- provides basis for control measures
The following steps are generally involved in planning process
- Establishing set of goals to be achieved
- Establishing Planning premise
- Deciding the planning period or horizon
- Finding alternative course of actions
- Evaluating and selecting a course of action
- Measuring and controlling the implementation
Forms of plans
Plans can be of different forms depending on the time-frame of their scope.
- Strategic plan: A long term planning considering a 5-10 years ahead. A plan that only provides direction
- Tactical plan : plans that provide more specific details such as actions, groups and timings
- Operational Plans: short term plans for daily or weekly or even monthly duration
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