Meaning and Definition of Planning
Planning is the primary function of management. It focuses on the future course of action. It specifies the objectives to be achieved in future and selects the alternative course of action to reach defined objectives. It also involves many activities like analyzing and decision making about technical, personnel, financial, and other elements essential to implement predetermined course of action. Thus, planning is mental and paper activities which look ahead for drawing the future course of action. In other words, planning is intellectual process which is concerned with deciding in advance what, when, why, how, and who shall do the work. Generally, manager defines goals and takes necessary steps to ensure that these goals can be achieved in efficient manner. Planning reflects vision, foresight and wisdom. Thus, it is the blue print of action and operation. Following are the important definition of planning:
“Generally speaking, planning is deciding in advance what is to be done” W H Newman
“Planning is that function of manner in which he decides in advance what he will do. It is a decision making process of a special kind, its essence is futurity.” Hayness and Massie
“Planning is deciding in advance what to do, how to do, when to do and who is to do it. Planning bridges a gap between from where we are to where we want to go” Harold . Koontz and O’Donnel.
“ Planning is the selecting and relating of facts and the making and using of assumption regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results” George R Terry
From the above definition, we may come into conclusion that planning is predetermination of objectives and intellectual course of action to be taken to achieved defined goal effectively and on time. Generally, planning involves the following elements;
1. Establishment of organizational objectives and policies. 2. Identification of alternative courses of action and programs 3. Selecting the best course of action and programme.
3. Procedure of Planning
For systematic approach to planning, it is essential to complete some procedures or steps. The major steps of planning are as follows:
Procedure of Planning
ImplementationReviewing the Determination
Of planplanning processof alternatives
Formulation of Selecting aEvaluation of
Derivative plancourse of ActionAlternatives
Figure: Procedure of Planning
1.Analyze Opportunities:Generally, this is not a step of planning. It is known as pre-step of planning. It is essential to make a successful plan. The management has to analyze strengths; weakness, opportunities and threats (SWOT) of changing environment of the business. Here, strengths and weaknesses are internal environment of the enterprise like availability of materials, machines, manpower, organizational structural technology etc.
In the similar manner, opportunities and threats are external environment and affected by many factors like government rules, economic condition, competitors strategy customers taste, social and cultural believes etc. it is essential to make detail study about the above factors and should be pointed clearly.
2.Setting objectives:This is the first and real starting point of planning. The objectives must be specific, clear and practical. They should be time bound and expressed in numerical terms. They should not be idealistic or over ambitious. A minor mistake in setting objectives might affect in implementation of plan. Thus, management has to define objectives in clear manner by considering organizational resources and opportunities. After...