Planning is the first important management function. Planning is important because it essentially asks questions about the goals of the organization and involves making decisions about the preferred methods and means to achieve those goals.
“Planning is the systematic management of resources and priorities,” Berry says. “Management is about leadership and productivity.”
Planning is the process by which managers set goals and determine how they can be achieved. The plan includes a mission and goals and a choice of actions to achieve them. This requires decision-making, i.e. choosing from alternative future actions. ..
Importance of Planning:
There are plans for every type of organization, household, department, economy and so on. The future is so uncertain that things can change at any time, so we cannot predict the future with 100% certainty, so we need to plan. Therefore, planning is a fundamental requirement of an organization for survival, growth and success.
- It helps managers improve performance in the future by setting a target
- Looking to the future comes down to minimal risk and uncertainty.
- Hence, it will reduce duplication between activities.
- It has increased consumption, what to do in the future, so the rational use of resources.
- Identify and define future opportunities and consequences.
- Standard checks are made to compare the actual performance with the standard performance and correct it.
Nature of Planning:
Planning is a spiritual activity. Planning is not an easy process. It is an intellectual process and involves the mind and vision of the manager. The plan is about goals. All plans specify future goals and steps required to achieve them. Below are some aspects of the nature of the plan.
Planning is a rational system: A plan is a future action you want to achieve. The planning process can vary depending on the time period required.
Planning is an open system: Since planning is also an open system, changes in the environment can affect the planning process.
Planning is done at all levels of the organization. Therefore, planning is done at all levels throughout the organisation. The manager performs planning tasks, for example, The product was launched nationwide.
The first plan is created at the highest level, such as when the brand’s famous product will be launched, and then even the organization that assigns responsibility to it. Therefore, it occurs at all levels of the organisation.
Planning as an intellectual process: Planning is a mental activity, mostly thought before you do. It is an intellectual process that involves creative thinking and imagination. When planning is done, all actions are carried out in an orderly manner in accordance with plans, and not on the basis of a design establishing a course of action to be followed on the basis of fair facts and estimates, bearing in mind -the aims, objectives and purpose of the campaign.
Dissemination of the plan: Design is a unique and universal feature of every manager. The nature and scope of the plan may vary according to the authority of each manager and the policies and design nature set by the manager, but all managers must have planning capabilities.
Design efficiency: Design must be not only efficient but also effective. The effectiveness of a plan is related to the extent to which the plan fulfils its purpose. However, the effectiveness of a plan means that it contributes to the achievement of aims and objectives, balanced by the costs and other factors required to develop and implement the plan.
With the help of good communication process elements, we can deliver our plans.
Types of Planning:
There are 4 major types of Plans:
Operational Planning: The operating plan is how things should go. There are instructions on how to carry out the mission. This type of design usually represents the day-to-day work of a company. Action plans are often defined as one-time or continuous plans. One-time event and activity plans are created in one event (for example, in one marketing campaign). The current plan includes problem-solving policies, specific rules, and step-by-step process steps to achieve specific goals.
2. Strategic Planning: Strategic planning is about why something should happen. Her big picture, long-term thinking. It starts at the highest level with a mission statement and a vision statement. Strategic planning provides an overview of the industry as a whole. It is the backbone of the organization and drives long-term decisions. The scope of the strategic plan can be anywhere from the next 2 years to the next 10 years. The key elements of strategic planning are vision, mission and values.
Tactical Planning: There is a strategic plan for what will happen. Primarily at the strategic level, V there are many focused, concrete and short-term plans where the work itself is done to support high-level strategic planning. Strategic planning supports strategic planning. It shows the approach the organization is taking to achieve the goals set out in the strategic plan. Computer plans differ from action plans in that they ask specific questions about what is needed to achieve the planned goals.
Contingency Planning: Contingency planning is done when something unexpected happens or something needs to be changed. Entrepreneurs sometimes refer to plans as a special type of plan. This planning is useful in situations where changes are needed. Administrators need to anticipate changes when executing existing forms of planning, but emergency planning is important when changes cannot be predicted. As all types of business world grow, it becomes more important to execute and understand emergency planning.
Process of Planning:
One of the most important is the function of management planning. It involves setting company goals and then managing resources to achieve those goals. As you would expect, it is a systematic process of eight thoughtful steps. Let’s take a look at the design process.
Recognizing the Need for Action:
Recognizing the business opportunities of your company’s external and internal environment is an important part of the planning process. Once these opportunities are identified, managers can identify the actions required to achieve them. The outlook for these new opportunities needs to be reasonably considered and a SWOT analysis needs to be performed.
This is the second and perhaps most important step in the planning process. Here you set goals for both your entire organization and individual departments. Organizational goals set a general direction, and departmental goals are more planned and detailed.
Planning is always done with the future in mind, but the future is always uncertain, so specific assumptions need to be made in the management process. These assumptions are prerequisites. Such assumptions are made in the form of predictions. External assumptions are related to factors such as the political environment, social environment, technological development, competition, public policy, and so on.
The fourth step in the planning process is to identify the alternatives available to managers. There is no single way to achieve the goals of the company, there are many options. All these alternative courses need to be identified. I need an option available to the manager.
Explore another course of action:
The next step in the planning process is to carefully evaluate and review each alternative plan. Each option is subject to testing that weighs all its strengths and weaknesses. Alternative plans should be evaluated against the goals of the organization. For example, if it is a financial plan. Then, in this case, that profitability assessment is performed. Detailed calculations and analyzes are performed to ensure that the plan can achieve its purpose in the best and most efficient way.
Choice of Alternative:
Finally, we have come to the decision stage in the planning process, now the best and most feasible plan to implement will be selected; the ideal plan is the most profitable with the least negative consequences, and also adaptable. . But the manager’s intuition and experience should also play an important role in this decision. Sometimes several different aspects of different plans are combined to create the perfect plan. ..
Create Support Plan:
Once the plan to implement is selected, the manager must create one or more support plans. These sub-plans help you implement the master plan. For example, hiring more people, training staff, or expanding your office. Support plan for a master plan for new product launch. Therefore, all of these high school plans are definitely part of the master plan.
Implementation of the Plan:
Finally, we will reach the final stage of the planning process, the implementation of the plan, when all other regulatory actions have been completed and the plan has been implemented to achieve the organization. The necessary tools for this implementation are related to the types of procedures, policies, budgets, rules, standards, etc.
Characteristics of Planning:
The following are the important characteristics of planning:
- Selective process: There are several other options available for each group to achieve a set of goals. This is basically the process of choosing between other options. It is related to the decisions related to
- Intellectual process: Planning is an intellectual process that involves creativity. Managers need to consider different behavioural policies, consider the strengths and weaknesses of each behavioural policy in detail, and then ultimately decide which approach is best for them. It’s not just a matter of measurement; it’s a matter of rational thinking. You need the mental ability to think before you act.
- Uninterrupted process: Planning is a continuous and endless process of managers within an organization. Managers make plans based on assumptions that may not happen in the future. He must therefore continue to change, modify and adjust his plans in the light of changes in the environment. Managers can’t plan once.
- Key tasks: Ahead of all other regulatory activities. There is no point in organizing, directing or directing the activities of an organization without setting goals to be achieved and policies to be followed. Of course, all other instructions depend heavily on the design. Do all other activities. As such, it is a fundamental duty of management.
- The pervasiveness of Planning: Planning is a popular activity. Controls at all levels of the organization to perform scheduled tasks. However, the nature and scope of the plan may vary at different levels of management. The management is in charge of the planning process. The middle and lower echelons are involved in management and strategic planning, respectively.
- Focus on hope: The plan should focus on achieving a specific goal/objective. Identify actions that lead quickly and effectively to the desired goal. A plan cannot be conceived without purpose.
- Looking to the future: Planning is done for the future, so we are always focused on the future. He decides what to do today and in the future. It’s based on forecasts, and plans are a combination of forecasts. Therefore, the plan is based on hyperopia, which is inherently positive.
- Increased efficiency:The plan aims to increase the efficiency of the organization at all levels. The guiding principle of good planning is to generate the highest yields and profits at the lowest cost. Planning helps reduce resource usage and consumption. In the plan, the manager evaluates the effectiveness of the alternative. Therefore, the concept of efficiency is reflected in the plan.
Through planning, the organization not only has an idea of the future but also helps the organization shape its future. Effective planning implies the simplicity of the plan, i.e. the plan must be clearly articulated and easy to understand. If more complex, it will create chaos among the members of the organization. Furthermore, the plan must meet all the requirements of the organization.