Planning

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THE MANAGEMENT PLANNING FUNCTION

Planning - is determining what needs to be done, when, by whom, how, and within what cost in order to achieve an objective. It is the work that a manager performs to predetermine a course of action.

* Provides the means for achieving a purpose, makes the best use of resources, makes a manager’s work easier, encourages teamwork, and forms a base for control. It is based on assumptions, involves change, and is carried out by people.

Planning includes:

* Forecasting
* Identifying values
* Setting objectives
* Developing strategies
* Programming
* Budgeting
* Setting policies
* Developing procedures

Managers must plan in order to avoid wasting:
1) Moment (Time) – i.e., to avoid delays.
2) Materials – i.e., to avoid spoilage or unnecessary inventories caused by haste. 3) Machines – i.e., they are not operated to their best capacity. 4) Space – i.e., to avoid overcrowding and poor coordination of incoming supplies and outgoing production.

5) Manpower – i.e., employees are not fully occupied.

Types of Plans
Importance of Planning:
1) To define his authority and responsibility when administering some types of plans developed by his superiors;

2) To understand the interdepartmental relationships of company activities of which he may see only a part; and

3) To develop logical, orderly plans in his own area of responsibility.

According to Henry Sisk, Plans be classified initially according to * Duration
* Function or use
* Breadth or scope

Based on Duration
Any plan may be described in terms of the time span it is designed to cover. Short-range plans obviously cover actions to be completed over short periods and long-range plans over a longer period. Short- range planning takes place chiefly in the lower levels of the organizational structure. Involvement in long-range planning increases as we go up the managerial ladder. A long- range plan is strategic in nature and handled by higher management, while a short- range plan is tactical in nature and handled by first-line supervisors. A long-range plan is almost always wider in scope, while a short-range plan is closer at hand and smaller in scope.

Based on Function
Plans may be classified in terms of the functions, or uses, to which they are applied. These may include the primary business function or supportive functions, such as personnel, purchasing , maintenance, research and development, engineering, and so on. The Functional grouping of plans assists management in visualizing interdepartmental relationships and in determining if and how plans of one department might affect operations in another department. This can be vital in avoiding potential conflicts and problem situations.

Based on Scope
Another basis for classifying plans is scope. On this basis, a plan can be classified as intradepartmental, interdepartmental, or company-wide scope.

Steps in Planning
I. FORECAST

As a manager, he “estimates” the future to determine appropriateness of plans and probable output of plans. On the basis of this information, he sets objectives which state the end result of what he wants to accomplish.

II. ESTABLISH OBJECTIVES
In this step, he determines what should be accomplished. He establishes a target toward which he and the people who work with him will be directing their efforts. He cannot very well determine how much money will be spent or when different activities need to happen until he has determined what should be accomplished. The manager’s objectives are criteria against which he can measure the effectiveness of his present activities. A clear statement of his objectives should also stimulate new ideas on how he can accomplish them.

III. PROGRAM
The next step is to determine how the objectives should be achieved. Here the manager lays out the...
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