Key Points
Key Points: Planning
- Planning = deciding in advance what to do and how to do it.
- It bridges the gap between the current position and desired position of an organisation.
- Planning involves setting objectives, identifying alternatives, and selecting the best one.
- It is a rational and systematic approach to goal achievement.
- Creativity and innovation are integral to planning.
- Time is limited - planning must be time-bound.
- A plan has no value unless it is properly implemented.
Key Points: Limitation of Planning
- Planning is essential but often disturbed by external changes.
- Rigid plans reduce flexibility in changing situations.
- Dynamic environment and competition make planning uncertain.
- Top-down planning reduces creativity and initiative.
- Planning is costly and time-consuming.
- Planning does not guarantee success; it is only a cautious tool, not a complete solution.
Key Points: Planning Process
- Planning is deciding in advance what to do and how to do it.
- The planning process has seven steps, from setting objectives to follow-up.
- Premises are future assumptions that form the basis of planning.
- Alternatives must be evaluated before one is selected.
- The best alternative is the most feasible and profitable; combining plans is also an option.
- Implementation involves putting the selected plan into actual action.
- Follow-up ensures the plan stays on track and objectives are met.
Key Points: Types of Plans
- Plans are classified by use (single-use / standing) and planning period.
- Single-use plans are for non-recurring, one-time events or projects - e.g., budgets, programmes, projects.
- Standing plans are for regular, recurring activities — e.g., policies, procedures, methods, rules.
- Standing plans are created once and modified as needed.
- Single-use and standing plans belong to operational planning; strategy belongs to strategic planning.
- Strategic planning is done by top management and focuses on resource allocation and competition.
- Objectives are set by top management and guide all planning; each unit aligns its own objectives to organisational goals.
