TOOLS OF PLANNING

Planning , long range or short range, strategic or tactical involves a series of decision to be taken by the managers in the organisation There are a number of alternatives choices and options available while planning the business There is a selection of resources and their allocation in an optimum manner to maximise the gains.

 Planning therefore involves decision-making with the help of tools. These tools are based on one or more factors . Factor are: a)creativity b)systems approach c)sensitivity analysis d) modelling

CREATIVITY: Creativity comes out of an experience, a judgment, an intuition of an individual or group of individuals. Creativity is the result of the conceptual skills of an individual .The conceptual skills comprises the following skills. 1. The ability to generate a number of ideas rapidly. 2. The ability to change quickly from one frame of reference to another.

3.Originality in interpreting an event and generating different views on the situation. 4.The ability to handle with clarity and ease a complex relationship of various factors in a given situation. The plans are made on the strength of experience and conceptual fluency. SYSTEMS APPROACH: It takes a course to an analytical study of the total systems ,generates alternative courses of action and helps to select the best in the given

 It is used in a situation of risk or certainty and examines the various alternative courses of action . It helps to find solutions to problems It tests the solutions for feasibility technical operational and economic Broadly ,the system approach has the following characteristics: 1. It uses all the areas and the branches of knowledge 2.It follows a scientific analysis to identity the problem

3)It uses a model of a complex situation to handle the problem 4)It weights cost against benefit for assessment of the alternatives. SENSITIVITY ANALYSIS: The sensitivity analysis helps to test the validity of the solution in variable conditions. The problem situation is handled with certain assumptions and conditions.

 Based on these considerations , a rational solutions is found . Sensitivity analysis requires to know whether the solution will still remain valid if the assumptions changed. Sensitivity analysis helps to test the validity of the optimal solution under changed conditions.

 MODELLING: A model is a meaningful representation of a real situation on a mini scale, Where only the significant factors of the situation are highlighted.
There are seven types of models: 1. physical model 2.scale model 3.Mathematical model 4.programming model 5.queuing model 6. Network model

A model could be static or dynamic models The physical models are static models and all the planning models and all the forecasting models are dynamic models A model , physical or mathematical, static or dynamic needs to be tests for utility or effectiveness.