PLANNING

INTRODUCTION

Planning is the process of bridging the gap between where we are and where we want to be in the
future. In other words, planning is “looking ahead, relating today’s events with tomorrow’s
possibilities.” It is the process of deciding in advance what to do, how to do, when to do it, and
who does what. Proper planning minimizes risk and ensures that resources are efficiently and
effectively utilized.……...………………………………………………………………………….

Planning and controlling are inseparable. Planning involves determining organizational

objectives and developing strategies to achieve the objectives, while controlling involves
establishing standards of performance and comparing actual results with the planned results.
Controlling without planning is meaningless. Unless one knows where to go, one cannot tell
whether one is going in the right direction or not. Planning gives an organization the required
focus and direction. Thus planning is a prerequisite of the control function.

With planning
Future position
With planning

Present
Position of Future position
organizati Without planning
on

Definition of planning …………. …………………………..………………………….

In simple words, planning is deciding in advance what action to take, how and when to take a
particular action, and who are the people to be involved in it. It involves anticipating the future
and consciously choosing the future course of action.…………………………………………

According to Peter Drucker,

“Planning is a continuous process of making present entrepreneurial

decisions (risk taking) systematically and with best possible knowledge of their futurity,
organizing systematically the efforts needed to carry out these decisions and measuring the result
of those decisions against the expectations through an organized systematic feedback.”

In the words of George R. Terry,

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“Planning is the selecting and relating of facts and the making
and using of assumptions regarding the future in the visualization and formulation of proposed
activities believed necessary to achieve desired results.” Thus, while planning, a manager makes
use of facts and reasonable premises and also considers the relevant constraints. The manager
then decides what activities are needed, how they are to be carried out and how they would
contribute to the achievement of the desired results.……………………………………………..

Dalton E. McFarland’s definition of planning takes into account the dynamic nature of the
environment. He defines planning as follows:……………………………………………………...

“Planning is a concept of executive function that embodies the skills of anticipating, influencing
and controlling the nature and direction of change.”……………………………………………….

According to Heinz Weihrich and Harold Koontz,

“Planning involves selecting mission and objectives and

the actions to achieve them; it requires decision-making that is, choosing from alternative future
courses of action.” Thus, planning involves determining organizational objectives and deciding
how best to achieve them. It involves looking ahead and relating today’s events with tomorrow’s
possibilities.

Characteristics of Planning

1.Goal-oriented
Planning is goal-orient in the sense that plans are prepared and implemented to achieve certain
object
2.Basic to all managerial functions. ………………………………………………………….
Planning is a function that is foundation of management process. Planning logically precedes all
Other functions of management, such as organization, staffing, etc. Because without plan there is
nothing to control. Every managerial action has to be properly planned.

3.Pervasive.
Planning is a function of all managers, although the nature and extent of planning will vary with
their authority and level in the organization hierarchy. Managers at higher levels spend more
time and effort on planning than do lower manager.
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4.Interdependent process. ………………………………………………………………………
Planning affects and is affected by the programs of different department in so programs
constitute an integrated effort.
5.Integrating process. …………………………………………………………………………..
Planning is essential for the enterprise as a whole. Newman and others have drawn our attention
towards this feature of planning, “without planning, an enterprise will soon disintegrate: the
pattern of its action would be as random as that made by leaves scampering (running quickly
in short steps )before an autumn wind, and its employees would be as confused as ants in an
upturned anthill.” If there are no plans, action will be a random activity in the organization,
instead there will be chaos.
6. Continuous process.

Planning is a continuous process. Old plans have to be prepared in case the environment
undergoes a change. It shows the dynamic nature of planning. It is never ending process.

Significant of planning: -………………………………………………………

In a complex business situation, planning helps managers meet the challenges posed by the
environment, while at the same time minimizing the risks associated with them. Planning is a
prerequisite not only for achieving success but also for surviving in a complex and competitive
world.

Planning is very important in all types of organizations. It forces organizations to look ahead and
decide their future course of action so as to improve their profitability. Organizations that plan in
advance are more likely to succeed than those which fail to plan for the future.

Planning is the first step in the management process. It ensures that the employees of an
organization carry out their work in a systematic and methodical manner. It also helps coordinate
and control various tasks and makes sure that resources are used optimally.

1. Achievement of objective: ……………………………………………………………….

Objective of the business can be achieved without ant problem as planning provide
guidelines for all activities of an enterprise. It is though the planning function that the
manager focuses his attention on the formulation f objective. Objective indicates the
direction of growth.
2. Planning minimize uncertainties ……………………………………………………………
Planning is concern with the future which is uncertain and very difficult to predict. The risk
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and insecurity are minimized. Planning is very essential to keep strict control on future
control.
3. Planning helps in proper utilization of resources ………………………………………
Through planning the resources available within the organization can be effectively used. it
encourage the employee to come forward with difficulties being faced by them for the
achievement of the target. Thus the workers frequently discuss their problems with the
supervisor and sense to involvement it felt by everyone in the organization. It creates the time
spirit.
4. Planning helps in the decision making process …………………………………………
Since planning specific the action the steps to be taken in order to accomplish organizational
objectives. it serves as a basis for decision about future activities.it also helps managers to
make routine decision making about current activities since the objective ,plans, policies,
schedules and so on are clearly laid do.

Types of plans or planning

 Architectural planning
 Business plan
 Comprehensive planning
 Economic planning
 Enterprise Architecture Planning
 Event Planning and Production
 Family planning
 Financial planning
 Land use planning
 Life planning
 Marketing plan
 Network resource planning
 Strategic planning
 Succession planning
 Urban planning
 Operational planning
 Contingency planning
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Process of Planning

Establishment of
Objective

Establishment of
Planning Premises

Choice of alternative
course of action

Securing Co-
operation

Follow up

Process of Planning

1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to be achieved.
c. Objectives provide a rationale for undertaking various activities as well as indicate
direction of efforts.
d. Moreover objectives focus the attention of managers on the end results to be achieved.
e. As a matter of fact, objectives provide nucleus to the planning process. Therefore,
objectives should be stated in a clear, precise and unambiguous language. Otherwise the
activities undertaken are bound to be ineffective.
f. As far as possible, objectives should be stated in quantitative terms. For example,
Number of men works, wages given, units produced, etc. But such an objective cannot be
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stated in quantitative terms like performance of quality control manager, effectiveness of
personnel manager.
g. Such goals should be specified in qualitative terms
2. Establishment of Planning Premises
a. Planning premises are the assumptions about the lively shape of events in future.
b. They serve as a basis of planning.
c. Establishment of planning premises is concerned with determining where one tends to
deviate from the actual plans and causes of such deviations.
d. It is to find out what obstacles are there in the way of business during the course of
operations.
e. Establishment of planning premises is concerned to take such steps that avoids these
obstacles to a great extent.
f. Planning premises may be internal or external. Internal includes capital investment
policy, management labor relations, philosophy of management, etc. Whereas external
includes socio- economic, political and economical changes. Internal premises are
controllable whereas external are non- controllable.
3. Choice of alternative course of action
a. When forecast are available and premises are established, a number of alternative course
of actions have to be considered.
b. For this purpose, each and every alternative will be evaluated by weighing its pros and
cons in the light of resources available and requirements of the organization.
c. The merits, demerits as well as the consequences of each alternative must be examined
before the choice is being made.
d. After objective and scientific evaluation, the best alternative is chosen.
e. The planners should take help of various quantitative techniques to judge the stability of
an alternative.
4. Formulation of derivative plans
a. Derivative plans are the sub plans or secondary plans which help in the achievement of
main plan.
b. Secondary plans will flow from the basic plan. These are meant to support and expedite
the achievement of basic plans.
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c. These detail plans include policies, procedures, rules, programmers, budgets, schedules,
etc. For example, if profit maximization is the main aim of the enterprise, derivative
plans will include sales maximization, production maximization, and cost minimization.
d. Derivative plans indicate time schedule and sequence of accomplishing various tasks.
5. Securing Co-operation
a. After the plans have been determined, it is necessary rather advisable to take subordinates
or those who have to implement these plans into confidence.
b. The purposes behind taking them into confidence are :-
a. Subordinates may feel motivated since they are involved in decision making process.
b. The organization may be able to get valuable suggestions and improvement in
formulation as well as implementation of plans.Also the employees will be more
interested in the execution of these plans.
6. Follow up/Appraisal of plans
a. After choosing a particular course of action, it is put into action.
b. After the selected plan is implemented, it is important to appraise its effectiveness.

Conclusion: - Planning is the 1st & the most important function of management. As it is very
essential in every walk of life & it tell the relation between perception & expectation.