BCom Notes Part II Management Planning

If you want to view other notes of this subject. Click Here.

If you want to view other notes of BCom Part II. Click Here. 

Planning

Define Planning and discuss its main characteristics. OR

Discuss the advantages, limitation and principles of Planning.

OR

What is planning? Outline the steps in planning process.

OR

What is the concept of planning as an element of Management process? Discuss its nature and role in a modern business organization.

Meaning and Definition of Planning

Planning is thinking in advance or before doing something. All kinds of organization do planning. Planning helps us in looking into the future. Planning establishes goals or objectives and identifies the ways to achieve them. A plan is a predetermined course of action to be taken in future.

George Steiner

Planning is a process that begins with objectives, defines strategies, policies and detailed plans to achieve them.

Peter Drucker

Planning is the continuous process of making present entrepreneurial (risk taking) decisions systematically and with best possible knowledge of their futurity.

Nature of Characteristics of Planning

There are a number of features or characteristics of planning that indicate towards its nature. These may be outlined as follows:

1. Goal-Oriented

Planning is goal-oriented in the sense that plans are prepared and implemented to achieve certain objectives.

2. Basic to all Managerial Functions

Planning is a function that is the foundation of management process. Planning logically precedes all other function of management, such as organizing, staffing etc because without plan there is nothing to organize nothing to control. Every managerial action has to be properly planned.

3. Pervasive

Planning is a function of all managers, although the nature and extent of planning will vary with their authority and level in the organization hierarchy. Managers at higher levels spend more time and effort on planning than do lower level managers.

4. Interdependent Process

Planning affects and is affected by the programs of different departments in so far as these programs constitute an integrated effort.

5. Future Oriented

Planning is forward looking and it prepares an enterprise for future.

6. Forecasting Integral to Planning

These essence of planning is forecasting. Plans are synthesis of various forecasts. Thus, planning is inextricably (inseparably bound up with planning).

7. Continuous Process

Planning is an ongoing process. Old plans have to be revised and new plans have to be prepared in case the environment undergoes a change. It shows the dynamic nature of planning.

8. Intellectual Process

Planning is a mental or conceptual exercise. It therefore involves rational decision making, requires imagination, foresight and sound judgement and involves thinking before doing thinking on the basis of facts and information.

9. Integrating Process

Planning is essential for the enterprise as a whole. Newman and others have drawn our attention towards this feature of planning, without planning, an enterprise will soon disintegrate the pattern of its actions would be as random as that made by leaves scampering (running quickly in short steps) before an autumn wind and its employees would be as confused as ants in an upturned anthill. If there are no plans action will be a random activity in the organization instead there will be chaos.

10. Planning and Control are Inseparable

Unplanned action cannot be controlled, without controlled, planned actions cannot be executed. Plans furnish standards of control, In fact Planning is meaningful without control and control is aimless without planning. Planning is measuring rod of efficiency.

11. Choice among Alternative Courses of Action

The need for planning arises due to several ways available for an action. If there is only one way-out left, there is no need for planning.

12. Flexible Process

The principle of navigational change (i.e. change according to changes in environment) applies to planning. In other words, effective planning requires continual checking on events and forecasts and the redrawing of plans to maintain a course towards desired goals. Thus, plans have to be adaptable to changing circumstances.