Definition & Meaning of Planning:
No
organization can operate properly if it lacks planning. This is a major
component of management and is responsible for planning all of the actions and
decisions that are necessary to achieve a desired result.
Planning
is a process of identifying what will be done, when and where it will be done,
and by whom. It helps in planning for the future.
The
manager then formulates a strategy that fits to the organization’s goals and
objectives. He then maps out the various steps necessary to achieve these goals.
Planning & Decision Making:
Planning
involves making a decision about the future course of action and choosing one
from an alternative. This process can be done in various ways.
Having a
significant influence on planning is also linked to decision-making. This is
because planning and decision-making have intimate relation. In any business,
every position is a decisional center.
Some
operating orders and instructions that are outside of the planning process are
also subject to decision-making. There are also many managerial functions that
call for decision-making but these functions are not included in planning.
Nature
& Characteristics of Planning:
Planning is
a process that involves identifying the goals of an enterprise and working out
the way to achieve them. Without achieving these goals, an organization cannot
organise and control its activities.
1.
Intellectual Process:
Planning
is a process that involves formulating a strategy and carrying out various
calculations. It is a mental exercise that requires a person to develop a
mental disposition to think before acting on the basis of facts.
A
manager's future is predicted through a planning process. This process helps a
manager to see how far he or she can go in terms of achieving her goals and
making a decision on how to proceed.
2. Goal-orientation:
All planning is linked up
with specific goals and objectives. It is therefore very important that every
plan contributes towards achieving these goals and objectives.
3. Efficiency:
A good
planning strategy aims to achieve optimal return on investment. It should also
bring the desired result to the manager and the people who are involved in its
implementation.
Importance
of Planning:
Planning
is the key to the success of an organization. It is the responsibility of every
manager to plan for the organization's continuous improvement.
Planning
functions are responsible for the organization's goals and objectives, as well
as the preparation of strategies and forecasts.
1.
Providing Basis of Decision:
The importance of planning
goes beyond just making decisions. It also helps in shaping the strategy and
implementing it properly.
2. Focusing
Attention on Objectives:
Planning is the process of
clearly explaining the organization's goals and objectives. It allows the
planners to formulate a strategy and plan for the organization's success.
3. Minimising
Uncertainty and Risk:
Planning helps the managers
avoid uncertainties and minimize risks. It can also predict and control the
events that can happen in the future.
4. Adapting
with Changes:
Due to the nature of
businesses, they operate in a changing environment which can affect their
operations and strategies. This planning process helps the organization prepare
for the changes that may occur and adjust their programs accordingly.
5. Securing
Economy:
A plan is a strategy that
aims to achieve a set of goals and minimize waste. It eliminates uncertainty
and helps the organization reach its objectives.
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