PLANNING
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 administrator to anticipate the future in order to achieve
better performance. Planning is the primary function of management.
Definition
Planning is
the French word `prevoyance', which means to look ahead.
According to Pfiffner and Presthus planning is
a rational process characterized of all human behavior."
According to Dimock and Dimock "Planning is
an organized attempt to anticipate and to make rational arrangement for dealing with future problems by projecting trends."
According to Simon, Smithburg and Victor A.
Thomson: "Planning is that activity that concern
itself with proposal for future, evaluation of
alternative proposals and with method
by which these proposals may be achieved”.
According to Allen, “A plan is a trap laid to capture the
future.”
STEPS IN PLANNING / PLANNING PROCESS
Planning involves following steps:
1. Recognizing the Need for Planning
This precedes planning and starts with intention of
either solving problem or to attain some
objectives. Organizations have need for planning to use scarce resources efficiently, and
make best use of opportunities and prepare for threats. This is because plans are considered as future course of
action. The
organizations have to look ahead to solve their problems.
22. Establishment of objectives
- Planning starts with the
setting of goals and objectives to be achieved.
- Objectives provide a foundation
for undertaking various activities as well as indicate direction of
efforts.
- Moreover
objectives focus the attention of administrators on the end results to be
achieved.
- 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.
- As far as
possible, objectives should be stated in quantitative terms. For example,
Number of men working, wages given, etc. But such an objective cannot be
stated in quantitative terms like performance, effectiveness of personnel
manager. Such goals should be specified in qualitative terms.
- Hence
objectives should be practical, acceptable, workable and achievable.
- Establishment
of Planning Premises
- Establishment
of planning premises is concerned with determining where one tends to
deviate from the actual plans and causes of such deviations.
- It is to
find out what obstacles are there in the way of business during the
course of operations.
- Establishment
of planning premises is concerned to take such steps that avoids these
obstacles to a great extent.
- Planning
premises may be internal or external. Internal includes financial matters,
management of labor relations, philosophy of management, etc. Whereas
external includes socio- political and economic changes. Internal
premises are controllable whereas external are non- controllable.
- Choice of
alternative course of action
- When
forecast are available and premises are established, a number of
alternative course of actions have to be considered.
- 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.
- The
merits, demerits as well as the consequences of each alternative must be
examined before the choice is being made.
- After
objective and scientific evaluation, the best alternative is chosen.
- Formulation
of derivative plans
- Derivative
plans are the sub plans or secondary plans which help in the achievement
of main plan.
- Secondary
plans will flow from the basic plan. These are meant to support and expedite
the achievement of basic plans.
- These
detail plans include policies, procedures, rules, programmes, 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.
- Derivative
plans indicate time schedule and sequence of accomplishing various tasks.
- Securing
Co-operation
- After the
plans have been determined, it is necessary rather advisable to take
subordinates or those who have to implement these plans into confidence.
- The
purposes behind taking them into confidence are:
- Subordinates
may feel motivated since they are involved in decision making process.
- 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.
- Follow up/Evaluation
of plans
- After
choosing a particular course of action, it is put into action.
- After the
selected plan is implemented, it is important to evaluate its
effectiveness. This is done on the basis of feedback or information
received from departments or persons concerned.
- This
enables the administration to correct or modify the plan.
- This step
establishes a link between planning and controlling function.
- The
follow up must go side by side the implementation of plans so that in the
light of observations made, future plans can be made more realistic.
nice article on Planning.
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