Planning

3. Reduces creativity

-Planning is usually done by the top-level management and is to be implemented by the other levels of management. Thus the other decision-makers and other levels are not allowed to deviate from the plans and also not allowed to act on their own. -Since the middle-level management and the low-level management are confined to just carrying out these orders it takes away the creativity in them and there is nothing new or innovative.

2. Is a primary function of management

-Planning lays down the base for other functions of management -All other managerial functions are performed within the framework of the plans drawn. -Referred to as 'Primacy of planning' as it precedes other functions.

6. Establishes standards for controlling

-Planning provides goals or standards against which actual performance is measured and by doing so they can know whether they have actually been able to attain the goals & if there is any deviation it can be corrected. -Thus planning is a pre-requisite for controlling

4. Is a continuous process

-Plans are laid out for a specific period of time and once that is over it has to be made again based on the new requirements and .future conditions. -The time period can be for a month, a quarter, or a year.

Method

-Provide the prescribed ways or manner in which a task has to be performed considering the objectives of the organization. -Deals with how each step of a procedure should be performed. -Method of the task may vary from task to task. -Selection of the proper method saves time, money, effort and increases efficiency.

Strategy

-Provides the broad outline of an organization's business. -Refers to future decisions defining the organization's direction and scope in the long run. -Is a comprehensive plan for accomplishing an organization's objectives. -Whenever a strategy is formulated, the business environment is to be taken into consideration as it will affect an organization's strategy. -Strategies usually take the course of forming the business organization's identity in the business environment. -Most strategic decisions will include decisions like whether the organization will continue to be in the same line of business, or combine new lines of activity with the existing business or seek to acquire a dominant position in the same market.

7. Is a mental exercise

-Requires foresight, intelligence imagination, sound judgment, logical and systematic thinking rather than guesswork or wishful thinking. -Thinking for planning must be orderly and based on the analysis of facts and forecasts.

Procedure

-Routine steps on how to carry out activities. -Detail the exact manner in which any work is to be performed. -Specified in chronological order. -The sequence of steps/actions to be taken is generally to enforce a policy and to attain pre-determined objectives.

3. Reduces wasteful/overlapping of activities

-Since it coordinates the activities and efforts of different departments and individuals it helps in avoiding confusion and misunderstanding. -Ensures clarity in thought and action thus the operations are smooth without any interruptions. -Useless activities are minimised or eliminated.

5. Time consuming process

-Sometimes drawing the plans can take so much time that there is not much time left for their implementation

Budget

-Statement of expected results expressed in numerical terms. -Is a plan which quantifies future facts and figures. -Since budget represents all items in numbers, it becomes easier to compare actual figures with expected figures and take corrective action accordingly. -Thus, a budget is also a control device from which deviations can be taken care of.

6. Does not guarantee success

-Success of an enterprise is possible only when the plans are properly drawn up and implemented. -Some managers use the previous plans which have turned out to be a success but that cannot guarantee success at all times and besides there are many unknown factors to be considered.

5. Selecting an alternative course of action

-The best plan has to be selected which would be the most feasible, profitable, and with the least negative consequences. -Most plans may not involve mathematical analysis rather they involve the subjectivity, the manager's experience, and at times intuition of the manager. -Sometimes even a combination of plans may be selected instead of just one best course.

6. Involves decision making

-The need for planning arises only when alternatives are available. -Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate one.

7. Follow-up action

-To monitor whether the plans are being implemented and activities are performed according to the schedule and the achievement of the objectives set.

Standing plans

-Used for activities that occur regularly over a period of time. -Designed to ensure smooth operations in the organization. -Greatly enhances efficiency in routine decision-making -Usually developed once and modified from time to time according to the needs of the business. -Include: 1. Policies 2.Procedures 3.Methods 4. Rules

4. Evaluating the alternative courses of action

-Weigh the pros and cons of each alternative -These pros and cons have to be evaluated in the light of the objective to be achieved and the feasibility and consequences of each action.

Features of Planning

1. Focuses on achieving the objectives: -Organisations are set up with a general-purpose in view under which specific goals are set out in the plans along with the activities to be undertaken to achieve the goals. -Planning has no meaning unless it contributes to the achievement of the pre-determined goals.

limitations of planning

1. Leads to rigidity: -In an organisation plans are drawn up with specific goals to be achieved within a specific period of time and the future courses of action decided has to be compulsorily carried out by the managers and cannot be changed later on. -Managers have to be given some flexibility to cope with the changing circumstances

Importance of Planning

1. Provides directions: -By stating in advance how work is to be done it provides direction for action. -Ensures that the goals or objectives are clearly stated. So that they act as a guide for deciding what action should be taken and in which direction. Else employees would be working in different directions and the organization would not be able to achieve its desired goals.

Process of planning

1. Setting the objectives: -Objectives may be set for the entire organization. -Specific goals have to be drawn up by the departments/units based on the broad framework of the organization's philosophy as well, as it directs the employees to work towards the common organizational goal. -The objectives set has to percolate down to each unit and employees at all levels and each manager should participate in the objective-setting process by providing their ideas.

Specific Plans

1.Objectives 2. Strategy 3. Policy 4. Procedure 5. Method 6.Rule 7.Programme 8.Budget

4. Promotes innovative ideas

Ideas can be in the form of specific plans and since planning guides the future actions leading to growth and prosperity of the business enterprise one has to frame proper plans.

What is planning?

Setting objectives for a given time period, formulating various courses of action to achieve them, and then selecting the best alternative from among the various courses of action available.

5. Facilitates decision making

Since planning helps the manager to foresee the future and take the appropriate choices from the various alternative courses of action, the manager has to evaluate each alternative and select the most viable proposition.

Types of plans

Standing plans and single use plans

5. Is futuristic

- The purpose of planning is to meet future events effectively to the best advantage of an organisation. -It is regarded as a forward looking function based on forecasting. -Through forecasting, future events are anticipated & plans are drawn accordingly.

3. Identifying alternative courses of action

-All alternative courses of action should be identified after setting the objectives and developing the premises. -The course of action can be routine or innovative -An innovative course of action can be adopted by involving more people and sharing their ideas.

2. May not work in a dynamic environment

-An organization has to constantly adapt itself to changes. -It will be difficult to accurately assess future trends in the environment if economic policies are modified or the political conditions are not stable, etc. -Thus planning cannot foresee everything and there can be obstacles to effective planning.

Rule

-Are specific statements that inform what is to be done. -Do not allow for any flexibility or discretion. -Reflects that a certain action must or must not be taken .

2. Reduces risk of uncertainty

-By deciding in advance what to do it shows the way to deal with uncertain events. -Changes/events cannot be eliminated but can help the managers to be prepared as to how to deal with the situation.

6. Implementing the plan

-Concerned with putting the plan into action.

Programme

-Detailed statements about a project outline which include the objectives, policies, procedures, rules, tasks, and human and physical resources required and the budget to implement any course of action.

Single-use plans

-Developed for a one-time event/project -Not likely to be repeated in future -The duration of this plan may depend upon the type of project. -These plans include: 1. Budgets 2.Programmes 3.Projects

2. Developing Premises

-Developing plans based on the assumptions of future events. -These assumptions are the base for plans to be drawn and these plans are known as 'Premises'. -The base material can be in the form of forecasts, existing plans, or any past info on policies. -These premises should be the same, agreed and used by all managers. -Accurate forecasts are essential for successful plans.

Objectives

-Ends which the management seeks to achieve by its operations -They are usually set by the top management of the organization & focus on broad, general issues. -objectives need to be expressed in specific terms i.e., they should be measurable quantitative terms in the form of a written statement of desired results to be achieved within a given period of time.

Policy

-General response to a particular problem or situation. -General statements that guide thinking or channelize energies towards a particular direction. -Provide a basis for interpreting strategies. -Policies are for all levels and departments in the organization ranging from major to minor policies. -Major Company policies: Customers, clients, competitors, etc. -Minor policies: Meant for insiders and contain minute details of the info vital to the employees of an organization. -Define the broad parameters within which a manager may function. -The manager may use his/her discretion to interpret and apply a policy.

4. Involves huge costs

-Huge costs are involved when plans are drawn up and it can be in the form of money, time, energy, etc. -The costs incurred sometimes may not justify the benefits derived from the plans.

3. Is pervasive

-Planning is required at all levels of management as well as in all departments of an organization. -Scope of planning differs at different levels and among different departments. -Ex: Top-level management plans for the whole organization, middle-level management plans for the department, and low-level management plans for the day-to-day activities.