Planning

Planning is defined as "defining objectives for a given period, designing various courses of action to achieve them, and selecting the most practicable alternative from the various alternatives." We may also describe planning as the process of identifying goals and devising a plan of action to attain them. Planning entails setting objectives and choosing the best path of action in advance. Time is a crucial component in planning. Plans are always made for a specific period because no firm can plan indefinitely.

Planning is essential for all organisations, whether public or private or run by sole proprietors. To realise their dreams of increasing sales, making large profits, and succeeding in business, all businessmen must consider the future, make predictions, and achieve goals. Planning entails deciding what to do, how to do it, and when to do it.

Meaning of Planning

Making decisions about what to do, why to do it, and when to do it necessitates preparation. Before beginning a task, management must plan out how to complete it. As a result, creativity and innovation are inextricably linked to this management function.

Setting goals allows a manager to know where he needs to go because planning bridges the gap between where we are now and where we want to be. The actions taken by managers at all levels are central to planning. It necessitates deciding because it involves choosing one course of action over another.

Features of Planning

Importance of Planning

Importance of Planning

1. Planning, which is concerned with the anticipated course of action, provides direction. It directs the efforts of the employees. Planning outlines what employees must do, how they must do it, and so on. Planning provides direction for action by outlining how tasks must be completed in advance. Employees are aware of the direction in which they must work ahead of time. This also leads to a sense of purpose. Without planning, people would work in different directions, preventing the organisation from reaching its ultimate goal.

2. Planning eliminates ineffective and unnecessary activities. When developing organisational plans, each department's needs are considered. The overall organisational structure is used to develop plans for each department. As a result, coordination will take place across multiple departments. On the other hand, if managers, non-managers, and all employees follow the plan of action, there will be integration in the activities. Plans ensure that thoughts and actions are clear and that work is completed quickly.

3. Since planning is an intellectual process that requires deep thought, it encourages inventive thinking. As a result, there is plenty of room for improvement regarding task-specific ideas, methods, and processes. During the planning process, managers are forced to think creatively and make assumptions about the future. As a result, it encourages managers' innovation and creativity.

Process of Planning

Below are the important processes of planning.

1. Setting the Objectives: The manager of the planning function begins by establishing the goals because all policies, procedures, and methods are designed solely to achieve the goals. When establishing the company's objectives, the managers carefully considered the company's ambitions, as well as its physical and financial resources. Managers tend to set goals that can be completed quickly and within a specific time frame. After the goals have been established, they are communicated to all employees.

2. Making Assumptions about the future is referred to as premises. On-site plans are created from the ground up. It is a type of forecast that is created by taking current plans and any prior knowledge about various policies into account. There should be a complete agreement on every premise. The assumptions are established based on forecasting. Forecasting is the method of gathering information. Forecasts are commonly used to determine the demand for a product, a change in a competitor's or government policy, the tax rate, and so on.

3. A List of the Various Options for Achieving the Objectives: After establishing the organisation's goals, managers develop a list of alternatives because there are numerous ways to achieve a goal, and managers must be aware of these options.

4. Evaluation of Numerous Alternatives: The manager begins by compiling a list of potential options and the underlying assumptions. The manager then begins evaluating each alternative, noting its benefits and drawbacks. When the manager begins to exclude those with greater negative aspects, the option with the greatest positive aspect and the most plausible assumption is chosen as the best alternative. When evaluating each alternative, its viability is taken into account.

5. Follow-up: Because planning is a continuous process, the manager's job does not end with the plan's execution. The plan's execution is closely monitored by management. Monitoring a plan is critical because it confirms whether or not the assumptions made about the conditions and outcomes are still valid today. If these predictions do not come true, the strategy is immediately modified.

Limitations of Planning

1. When plans are developed to determine the future course of action, management may be unable to change them, resulting in rigidity. Following a predetermined plan when conditions change may be detrimental to the organisation. This level of design rigidity could be problematic.

2. Planning stifles creativity because it forces organisational managers to act rigidly and exclusively as plan blind followers. Managers take no initiative to modify the plan in response to changes in the business environment. They stop offering proposals and new ideas to improve working conditions because the criteria for working are only provided in planning.

3. The cost of planning is significant because it necessitates organisations paying qualified professionals to carry out the process. Planning is a mental activity. In addition to paying these experts' salaries, the corporation must invest significant time and resources in gathering reliable data. As a result, it is an expensive process. If the benefits do not outweigh the costs, planning should be discontinued.

Case Study

What must be considered during planning and scheduling? Explain with an example with respect to proper planning.

Ans: Controlling spacecraft is a difficult aspect of planning and scheduling. Planning, for our purposes, can be defined as identifying all of the minor tasks that must be completed in order to achieve a goal. Consider the following scenario: you want to buy a gallon of milk. Although it appears to be a simple operation, numerous smaller activities are involved, such as getting the keys, getting the wallet, starting the car, going to the store, finding and getting the milk, purchasing the milk, and so on.

Planning also considers the constraints that limit when specific tasks can or cannot occur. Two of the many restrictions in this scenario are that you must get your wallet and keys before going to the store and get the milk before purchasing it.

Consider scheduling as determining whether enough resources are available to carry out the plan. In the aforementioned scenario, scheduling would need to account for two resources: time and gasoline. If you need two gallons of gas to get to the store and back, but your car only has one, you must devise a plan that includes a stop at a gas station.

You must consider time constraints when planning your chores. For example, if going to the store takes 15 minutes, the store closes at 10:00, and it is already 9:30, you must plan your duties accordingly.

Conclusion

Planning is the process of making critical decisions that will allow a company to grow successfully in the coming years. As a result, planning entails defining the goal and devising a strategy to achieve it. Planning provides a methodical strategy for achieving the company's predetermined goals. As a result, teamwork is critical for achieving organisational goals. These objectives serve as the standard against which actual performance is measured.

As a result, planning entails establishing goals and objectives and devising a strategy to achieve them. The planning process is time-limited, but time is a limited resource. It must be used with caution.