- Planning means deciding in advance what to do and how to do it.
- It is a basic function of management performed at all levels.
- It involves setting objectives and targets to be achieved within a specific time.
- It requires choosing the best course of action from different alternatives.
- It helps bridge the gap between the present position and future goals.
Definitions [1]
Definition: Planning
Planning is deciding in advance what to do and how to do.
Key Points
Key Points: Concept of Planning
Key Points: Importance of Planning
- Provides Direction – Clearly defines goals and guides employees towards achieving them.
- Reduces Uncertainty – Helps managers anticipate future changes and prepare in advance.
- Avoids Waste – Reduces confusion, duplication, and unnecessary activities.
- Encourages Innovation – Helps turn new ideas into practical plans.
- Improves Decision Making – Helps choose the best course of action from alternatives.
- Basis for Control – Sets standards to compare actual performance and take corrective action.
Key Points: Features of Planning
- Focus on Objectives: Aims at achieving set goals.
- Primary Function: First and basic function of management.
- Pervasive: Done at all levels and in all departments.
- Continuous: Plans are regularly revised and updated.
- Futuristic: Prepares for future through forecasting.
- Decision-Making: Selects the best option from alternatives.
- Mental Exercise: Requires logical thinking and foresight.
Key Points: Limitations of Planning
- Leads to Rigidity – Plans reduce flexibility in changing situations.
- Dynamic Environment – Future changes cannot be predicted accurately.
- Reduces Creativity – Employees only follow plans, limiting innovation.
- Costly Process – Requires time, money, and research.
- Time-Consuming – Takes a lot of time to prepare.
- No Guarantee of Success – Planning alone cannot ensure success.
Key Points: Planning Process
- Setting Objectives – Clearly define organisational and departmental goals to give direction to all employees.
- Developing Premises – Make assumptions about future conditions (like demand, prices, policies) on which plans are based.
- Identifying Alternatives – Find different possible courses of action to achieve the objectives.
- Evaluating Alternatives – Compare the pros and cons of each option in terms of feasibility, risk, and returns.
- Selecting the Best Alternative – Choose the most suitable and practical course of action.
- Implementing the Plan – Put the selected plan into action by arranging resources and assigning tasks.
- Follow-up Action – Monitor and review the plan to ensure objectives are achieved and make corrections if needed.
Key Points: Types of Plans
- Single-Use Plans – Plans for one-time projects. Examples: programme, project, budget.
- Standing Plans – Plans for routine and repeated activities. Examples: policies, procedures, methods, rules.
- Objectives – Desired future goals the organisation wants to achieve.
- Strategy – Broad long-term plan that defines the organisation’s direction and scope.
- Policy – General guideline for decision-making.
- Procedure – Steps to carry out an activity.
- Rule – Specific instruction about what must be done.
- Programme – Detailed plan of a project including tasks, resources and budget.
- Budget – Financial plan expressed in numerical terms.
Important Questions [9]
- Explain the following as limitations of planning: i. Planning leads to rigidity. ii. Planning may not work in a dynamic environment.
- Explain Any Three Limitations of ‘Planning’.
- State any three limitations of planning.
- Explain the following limitations of planning: i. Planning reduces creativity. ii. Planning involves huge costs.
- State the Role of 'Route Clerk' in Functional Foremanship.
- Explain the First Three Steps in the Process of 'Planning'.
- 'Sarah Ltd.' is a Company Manufacturing Cotton Yarn. It Has Been Consistently Earning Good Profits for Many Years. Quoting the Lines from the Above Discussion Identify and Explain Any Four Such Factors.
- Meca Ltd. a Reputed Automobile Manufacturer Needs Rupees Ten Crores as Additional Capital to Expand Its Business. Name the Method Through Which the Company Decided to Raise Additional Capital.
- Answer the Following Question. Varsha Jain After Completing Her Fashion Designing Course Form the Indian Institute of Fashion Technology Planned to Enter into Designer Clothing Venture.
