What is planning? (Definition)
Planning is the process of deciding in advance that –
“What is to be done, by whom and how it is to be done and when it is to be done.”
It is the determination of a course of action to achieve the desired results. It bridges the gap from where we are and where we want to go? It makes things possible to occur which would not otherwise happen.
“Planning is a mental process requiring the use of intellectual faculties, imagination, foresight and sound judgment.”
In the words of Koontz, O’Donnell and Weihrich, “Planning is an intellectually demanding process; it requires the conscious determination of courses of action.”
Planning involves anticipation of future course of events and deciding the best course of action. It is basically a process of thinking before doing.” To plan is to produce a scheme for future action; to bring about specified results, at specified cost, in a specified period of time.
Failing to plan is planning to fail – alan lakein
Kinds of Planning –
1. Strategic and Functional Planning – Strategic planning is related to the top management’s planning as it involves the accomplishment of general objectives with respect to the resources available or to be made available in future. Functional planning is done by various departments like production, marketing, finance and purchase etc.
2. Long – Range and Short – Range Planning – Long range planning means long term planning in which desired goals are set for long term. It has an involvement of anticipation, analysis and decision making at all levels. Short range planning is obviously a short term planning where short term activities are determined based on short term goals. Operational plans are generally related to short periods. DWM (Daily Work Management) is also part of short term planning on regular basis.
3. Ad Hoc Standing Planning – Ad hoc planning is required when any specific target is to be achieved. (Like project planning) On the other hand standing planning means planning for standard procedures and policies, standard methods etc.
4. Administrative and Operational Planning – Administrative planning is done by the middle level management which provides the foundation for operative plans. Operative planning, on the other hand, is done by the lower level managers to put the administrative plans into action.
5. Physical Planning – It is concerned with the physical location and arrangement of buildings and equipments. City planning and regional planning are the illustrations of physical planning.
6. Formal and Informal planning – All above types of planning are formal planning however Informal planning is based on initial thinking of an individual which may become the basis of formal planning in future. Informal planning is a planning in back of mind of an individual.
IS Planning Necessary?
thinking well to be wise, PLANNING well is wiser, doing well is wisest and best of all – malcolm forbes
To achieve an objective planning is the most important activity which ensures the process of actions from beginning till end of results.
Proper planning saves time and energy and we can ensure systematic way of doing work with anticipated problems and their solutions.
No Organization can achieve its objectives without proper planning because of certain reasons, these reasons are –
1. Growing complexities of modern business due to rapid technological changes and keen competition.
2. Rapid social, economical and political changes.
3. Lack of certain resources.
4. Increasing government control over business.
5. Need for R&D activities.
The above reasons are like challenges before the management and proper planning supports in dealing with these challenges effectively.
Let our advance WORRYING BECOME advance thinking & planning - winston churchill
Steps in Planning –
1. Establishing Objectives.
2. Collection and Forecasting of Information.
3. Development of Planning Premises – (Internal or External environment)
4. Determination and Evaluation of Alternative Plans.
5. Selection of Plan and Development of Derivative Plans.
Essential Requisites of an Effective Plan
An effective plan is one which helps in the better management of the enterprise. In order to be effective, a plan should process the following characteristics:
1. A Plan should be specific – The more specific it is, the chances of misinterpretation is less. Objectives should be clearly defined. The means for carrying out the plan should also be indicated in unambiguous terms.
2. A Plan should be Logical – Logical plan has no ambiguity. Your actions should be based on logics only.
3. A Plan should be complete and integrated – A plan is said to be complete when it is comprehensive enough to cover all actions expected from the individuals and sections of the undertaking as a whole. It is said to be an integrated one when various administrative plans are so welded into one another that the whole undertaking operates at the peak of its efficiency.
4. A Plan should be Flexible – Plan neither is infallible or foolproof nor can it cover all possible contingencies. It is essential to introduce some flexibility in every plan. On the other hand plan should have alternatives to implement if required. Rigid planning may not go well with future changes.
5. A Plan should be Capable of Being controlled – Effective planning of business activities depends upon the ability to foresee with utmost accuracy the nature and requirements of future events relating to industry in general and the business undertaking in particular. Therefore the plan must distinguish between controllable and uncontrollable future environment for better administrative control.
Benefits of Planning –
1. Focuses attention on objectives – Proper planning is always based on certain objectives and we act based on achieving objective only as a first step of planning.
2. Ensures economical operations – Proper planning is always considered with cost of recourses. By doing mental exercises, we can have proper direction for achieving efficient operation of an organisation.
3. Reduces uncertainty – Effective planning helps in reducing uncertainties of future because we anticipate based on facts and figures. It also involves for costing and solutions for expected changes during the course of action.
4. Facilitates Control – There is a close relationship between planning and control. You need to control your actions based on the planning. On the other hand unavoidable deviations are also taken care of, to get the desired results.
5. Encourages Innovation and Creativity – The process of planning involves deep mental exercise and therefore many new and creative ideas are generated automatically to make the planning effective with respect to the time schedule and desired actions. This is indeed a positive aspect of any planning.
6. Improves Motivation – While getting desired results as per the plan the team members get motivated from time to time and they become more enthusiastic to achieve the target successfully. Planning ensures close participation of all team members and it may be considered as a part of training too.
7. Improves Competitive Strength – An organisation gets a competitive strength on achieving desired goals as compare to other companies which is only due to an effective planning of the management.
8. Achieves Better Coordination – If we see the process of planning, we understand the importance of coordination and cooperation of each and every team member by which the desire results are achieved successfully within the time schedule. Improper coordination or haphazard manner of working lead to failures on the part of planning and there will be no control over implementation of plans. Do your best-Ashutosh
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