Monday, 30 May 2016

Planning: concept and process

“If you fall to plan, you plan to fail”
Meaning of planning:  Planning forms that part of management which lays down the objectives and various activities to be done for the attainment of those objectives. Under this it is decided what has to be done? How is to be done? When is to be done? Deciding about all these things is called planning.  A problem about taking decisions on these matters arises when there are, more than one possible answer.  Therefore, it can be said to be a process of choosing.

According to M.E.HARLEY,” planning is deciding in advance what is to be done. It involves to selection of objectives, polices, procedures and programmes from among alternatives.”

According to koontz and o’donnel,” planning is deciding n advance what to do, how to do it, when to do it, and who is to do it.”
Characteristics or nature of planning:
1.     Planning is an intellectual process: planning is chiefly an intellectual process which means thinking before doing.  The success of planning depends on the manager and his ability to collect the facts which are like to affect planning whether these facts are connected with the present situation or the estimated future changing; how correctly he studies and evaluates these facts; and how correctly he takes his decision on their basis.  The whole process happens to be intellectual and for the successful completion of all these activities the planner should have far sightedness, imaginative power and decision making capacity.  A planner should mainly consider the following questions:

*what is to be done?
*how is it to be done?
*when is it to be done?
*by who, is it to be done?

Taking decisions on all these questions depend on the competence of the planner.  therefore it can be said that planning requires thinking at every step.  Hence, it can be considered as an intellectual process.


2.     Planning is selection of the best alternative: the second important characteristic of planning is the selection of the best alternative.  There can be many ways of doing a work and the planner selects the best possible alternative. Therefore, it can be said that planning involves the selection of the best alternative and rejection of the inappropriate ones.

3.     Planning is all pervasive: it will be appropriate to describe planning as all pervasive because it operates at all the levels of management in an enterprise.  It is an important function of every manager to plan things whether he is a managing director or simply a foreman in a factory.  Some people are of the opinion that planning is the job of only the high level managers but it is not true.  It can, however, be admitted that the high level , managers spend more time in comparison to the middle level or lower level managers in the work of planning. It is, therefore, clear that all the managers working in an enterprise have to plan their activities.


4.     Planning is the primary function of the management:  planning is the primary function of management and all other function like organising, staffing, leading, and controlling come later.  In the absence of planning no other function of management can be completed.  Undoubtedly planning is the first function of management but it does not mean that after planning when other function of management.  Without planning neither organization can be created, nor staffing can be done.  Similarly, planning is needed in case of leading and controlling.

5.     Planning is forecasting:  planning always takes into consideration the future.  Under planning, on the basis of collected facts, the future is anticipated and proper decision taken, thus, we can say that forecasting is the essence of planning.


6.     Planning is a continuous process:  planning is that process which begins with the establishment of the organisation and ends with the organization.  In the other words, the process of planning continues so long as the organization continues to exist.  A manager starts planning before the work is started and when one work is accomplished planning for the other begins and this process continues.  Thus, planning is a continuous process.

7.     Planning is flexible:  planning involves forecasting the future which is uncertain.  It is quite possible that the basis of the forecast made by the manager or the facts on which he makes his planning under ago some changes in his planning according to the changed facts or situations, it can thus be said that planning is a flexible process.


8.     Planning is goal oriented: an enterprise in establishment with some pre determined objectives and planning tells us how to achieve them.  Therefore, it is clear that planning without some objectives is meaningless.

9.     Planning is an interdependent process:  the activities of an enterprise are divided into many departments like purchase department. Sales department, production department, finance department, personnel department, etc.  all these departments have their own separate plans which are the parts of a master plan of a particular department due to some reason, the plans of all other department have to be ,modified accordingly.  For example, if the sales department achieves more sales than the anticipated quantity, its plans shall have to be modified resulting in more purchases and production to cope with the demand of the sales department. This, in turn, necessitates changes in the plans of the purchase and production departments as well.  Thus the departmental planning depends on one and other.


10.         Planning leads to efficiency and economy: planning makes it possible to utilize the available human and material resources in the most favourable manner in an organization.  Capital, labour, material, , machinery, etc., are utilized in a manner to produce the maximum quantity of the best quality goods with minimum cost.


11.         Planning considers limiting factors:  the quantity of available resources of production has to be kept in mind before planning.  If a manager ignores the limited resources, planning is bound to fail.  For example, if the raw material will be limited factor, only after its availability is decided, the other activities like production, sales, etc., can be thought of.


12.         Planning creates coordination:  in any organization coordination of all the activities is necessary to run the work unhindered.  With the help of planning what, why, who, where, when, etc. of every things is clarified.  Doubts are cleared and coordination is established. Planning makes it clear as to what is to be done, why it is being done, who will do it, where it will be done and when it will be done. On the other hand, without planning nobody will know what is to be done and what is not to be done.

No comments:

Post a Comment