21-08-2012, 03:23 PM
Planning
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A plan is a forecast for accomplishment. It is a predetermined course of action. It is today's
projection for tomorrow's activity In other words; to plan is to produce a scheme for future action, to
bring about specified results at a specified cost, in a specified period of time.
Planning is the most basic of all management function. Planning refers to the
determination of course of action to achieve a desired result. Planning is the process of selecting the
objectives and determining the course of action required to achieve these objectives and determining the
course of action required to achieve these objectives. Lot of information has to be gathered and
processed before planning is formulated. Planning bridges the gap from where we are and where we
want to go. It makes the things possible to occur which would not otherwise happen. Let us look at what
the following observations suggest about planning.
Definitions of Planning:
According to Koontz and O’Donnell, “Planning is an intellectual process, the conscious
determination of course of action, the basing of decisions on purpose, facts and considered estimates”.
According to Louis Allen, “Management planning involves the development of forecasts,
objectives, policies, programmes, procedures, schedules and budgets.”
According to Heinz Weihrich and Harold Koontz, “Planning involves selecting mission
and objectives and the actions to achieve them; it requires decision-making that is, choosing from
alternative future courses of action.”
Nature of Planning:
The planning refers to the process of designing the future course of action for an
organisation to achieve specific goals. The nature of planning is discussed below;
a) Planning – a primary function:
Planning is the primary function of management and it proceeds all the function such as
organising, directing, controlling etc. There is meaning of other activities without setting the
goals to be achieved a line of action to be followed. In fact, all other functions of management
largely depend upon planning.
b) Planning – a dynamic process:
Planning is a continuous managerial function involving complex processes such as
perception, analysis, communication, decision and action. It is a never-ending activity of a
manager of an enterprise. Most of the plans are modifying, revising according to the changes of
circumstances. Moreover, series of plans are to be followed successively one after the other.
Thus the planning process will continue and will never come to an end.
c) Planning – based on objectives and policies:
Planning process involves setting of objectives to be achieved and determining the
technique for achieving those objectives to be achieved and determining the technique for
achieving those objectives. The various techniques such as policies, programmes, procedures are
formulated. Objective determines where we are to go, and planning makes a bridge over where
we are and where we want to go. Thus the planning and objectives are related.
d) Planning – a selective process:
For achieving a particular objective, there are number of alternatives available. The
planning manager has to select only one alternative which is best suited to firm. Thus planning is
one kind of selective process.
e) Pervasiveness of Planning:
Planning is generally considered as a function of top-level management, but it is not true.
Planning function should spread or make available throughout the organisation. Every manager
has a planning function to perform. Only the scope of planning differs from person to person
depending upon the levels of management.
f) Planning – an intellectual process:
Planning is a mental activity. It is a process where a number of activities are to be taken
to decide the future course of action. Various levels of managers has to consider various course
of action, achieving the desired goals, the detailed process of every course of action and then
finally decide which course of action may suit them best. Thus Planning is an intellectual action.