Planning

Legal Aspects of Business

Unit I
 Meaning
• Deciding in advance what to do, how
to do it, when to do it, and who is to
do it.
• It bridges the gap from where we
are to where we want to go.
 Nature of Planning
• A Thinking Process
– Should be Creative
• Forecasting vs. Planning
– F : expects; P : wants, highly scientific
• Accomplishment of group objectives
– Co-ordinate varied human beings
• Choice between alternatives
 Nature of Planning
• Pervasiveness of Planning
– I : Determine objectives
– II : How to achieve
– III : Operational Details (who, what
mtls. Allocated, Time, Review, etc.)
• Flexibility
• Integrated process
 Importance of Planning
• Selection of optimum goals
• Tackling increasing complexities
• Meeting Environmental Changes
• Safeguard against business failures
• Unity of action
• Effective co-ordination and control
• Increase Organizational Effectiveness
 Limitations

• Uncertainty
• Action packed routine
– Little time to think and plan
• Abstraction
– Assumptions and Guesswork
• Rigidity
• Costly
– Time and Money
Any Doubts???