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PLANNING PROCESS
MEANING OF PLANNING
Planning
MEANING OF PLANNING
According
MEANING OF PLANNING
Managers
Planning
CHARACTERISTICS OF PLANNING
Planning is goal-oriented: Planning is made to
achieve desired objective of business. The goals
established should have general acceptance
otherwise individual efforts & energies will go
misguided and misdirected. Planning identifies the
action that would lead to desired goals quickly &
economically.
Planning is looking ahead: Planning is done for
future. It requires peeping in future, analyzing it
and predicting it. Thus planning is based on
forecasting. It is a mental predisposition for things
to happen in future.
CHARACTERISTICS OF PLANNING
Planning is an intellectual process: Planning is
a mental exercise involving creative thinking, sound
judgments and imagination. It is not a mere
guesswork but a rotational thinking. A manager can
prepare sound plans only if he has sound
judgments, foresight and imagination.
Planning is the primary function of
management: Planning lays foundation for other
functions of management. It serves as a guide for
organizing, staffing, directing and controlling. All
the functions of management are performed within
the framework of plans laid out. Therefore planning
is the basic or fundamental function of
management.
CHARACTERISTICS OF PLANNING
CHARACTERISTICS OF PLANNING
The top level may be more concerned about
planning the organization as a whole whereas the
middle level may be more specific in departmental
plans and the lower level plans implementation of
the same.
Planning is designed for efficiency: Planning
leads to accomplishment of objectives at the
minimum possible cost. It avoids wastage of
resources and ensures adequate and optimum
utilization of resources. A plan is worthless or
useless if it does not value the cost incurred on it.
Therefore planning must lead to saving of time,
effort and money. Planning leads to proper
utilization of men, money, materials, methods and
machines.
CLASSIFICATION OF PLANNING
At a general level, there are three kinds of
organizational plans:
1. Strategic Plans: A general plan outlining
decisions of resource allocation, priorities and
action steps necessary to reach strategic goals.
This plan covers a longer span of time. This
involves upper level management.
2. Tactical Plans: A plan aimed at achieving tactical
goals and developed to implement parts of a
strategic plan. These plans involve upper and
middle level management, and compared with
strategic plans, have a somewhat shorter time
horizon.
CLASSIFICATION OF PLANNING
Operational Plan: These plans focuses on
carrying out tactical plans to achieve operational
goals.
These are developed by middle and lover level
managers, and these plans have a short term
focus and relatively narrow in scope.
According to the time frame of plan, Planning can be
classified as1. Short Range Plan: A plan that generally covers
upto a year or less than a year.
2. Long Range Plan: A plan that covers more than
a year and above.
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ADVANTAGES OF PLANNING
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ADVANTAGES OF PLANNING
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ADVANTAGES OF PLANNING
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DISADVANTAGES OF PLANNING
Internal Limitations: There are several
limitations of planning. Some of them are inherit in
the process of planning like rigidity and other arise
due to shortcoming of the techniques of planning
and in the planners themselves.
1. Time consuming: Planning is a time consuming
process because it involves collection of
information, its analysis and interpretation
thereof. This entire process takes a lot of time
specially where there are a number of alternatives
available. Therefore planning is not suitable during
emergency or crisis when quick decisions are
required.
DISADVANTAGES OF PLANNING
Expensive: Collection, analysis and evaluation of
different information, facts and alternatives
involves a lot of expense in terms of time, effort
and money. According to Koontz and ODonell,
Expenses on planning should never exceed the
estimated benefits from planning.
External limitations of Planning:
Political Climate- Change of government from
Congress to some other political party, etc.
Labor Union- Strikes, lockouts
Technological changes- Modern techniques and
equipments, computerization.
Policies of competitors
Natural Calamities- Earthquakes and floods.
Changes in demand and prices
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