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chapter -2 planning

       BBA PRINCIPLE OF MANAGEMENT
CHAPTER - 2
PLANNING

DEFINITION OF PLANNING:-
Planning can be defined as, " thinking or deciding in advance what is to be done, how it is to be done, when it is to done and by whom it should be done.

NATURE OR FEATURES OF PLANNING:-
  1. Planning contribute to objective:- planning starts with determination of objectives. We cannot think planning without objective.
  2. Planning involve decision making:- when different alternatives are available then we needed the planning function and we have to select most suitable alternative. If there is one alternative then there is no requirement of planning.
  3. Planning is continuous process:- Planning is never ending process because after making plans planners keep making changes in the plans according to the requirement of the company.
  4. Planning is forward looking:- planning always looking ahead because it is not done for past. All the manager try to make assumptions regarding future.
  5. Planning is an intellectual process:- planning is intellectual process which requires higher thinking. This activity requires higher level of intelligence. Planning is also called mental process.
  6. Planning is all pervasive:- planning is required or needed by every level of management.
IMPORTANCE/ SIGNIFANCE OF PLANNING:-
  1. Planning provide direction:- It provides the direction to the efforts of employees. Planning makes clear that what employees have to do, how to do, when to do, etc.
  2. Planning promotes innovative ideas:- Planning requires high thinking and it is a thinking process. So it make manager innovative and creative.
  3. Planning facilitates decision making:- Planning helps the manager to look into the future and make a choice from amongst various alternative course of action.
  4. Planning reduce the risk of uncertainties:- It helps the manager to face the uncertainty because planner try to force the future by making some assumptions. The plan are made to overcome such uncertainties.
  5. Planning establishes standard for Controlling:- It has pre-determined goal with which the actual performance are compared to find out deviation and suggest remedial measure. 
  6. Planning reduce overlapping and wasteful activities:- It evaluate the alternative uses of available and prospective resources of business and makes their must appropriates use .
LIMITATIONS OR BARRIERS OF PLANNING:-
  1. It is a time consuming process:- lot of time is needed in developing planning premises. So, because of this, the action gets delayed.
  2. It does not give guarantee success:- It only provides a base for analysing future. It is not a solution for future course of action.
  3. It may not work in dynamic environment:- Business environment is a very dynamic as there are continuously change taking place in economic. It becomes very difficult to forecast these future changes. Plans may fail if there a frequent change in environment.
  4. It involve huge cost :- It involves huge cost because it is an intellectual process and companies need to hire the professional expert to carry on this process.
  5. It leads to rigidity:- once plans are made to decide the future course of action the manager may not be in a position to change them. When circumstances are changed may not bring positive results for organisation. This kind of rigidity in plan may create difficulty.
PLANNING PROCESS:-


  1. Setting up of objectives:- The manager set up very clearly the objectives of the company keeping in mind the goals of the company.
  2. Developing premises:- Premises means making assumptions regarding future. It is a kind of forecast made keeping in view existing plans and any past information about various policies.
  3. Listing of various alternative:- The manager make a list of alternative through which the organization can achieve its objective.
  4. Evaluation of different alternatives:- The manager starts evaluating each and every alternative and notes down the positive and negative aspects of every alternative.
  5. Selection an alternative:- Sometime instead of selecting one alternative, a combination of different alternatives can also be selected. 
  6. Implement the plan:- The manager start communicating the plans to all the employees actually have to carry on the activity according to specification of plans.
  7. Follow up:- The manager monitor the plan carefully while it is implemented and follow it on continuous bases.
NEEDS OR PURPOSE OF PLANNING

 Every business needs planning whether it is small or big one. Every plan should be linkedd with some other objectives. The planning done by manager is aimed at achieving the organisational goals. it is to minimize the risk by reducing the uncertainities surrounding business conditions and clarifying the concequences of related mangement action. Planning is also provide a basis for teamwork as when the goals are properly defined assignments can be fixed. planning facilites control without planning there will be nothing to control.

"WITHOUT PLANNING, BUSINESS BECOMES RANDOM IN NATURE AND DECISIONS BECOME MEANINGLESS".

REQUIREMENTS OF AN EFFECTIVE PLANNING:-
  1. Effective plan is very simple to understand. It should be of such kind that each and every member may be able to understand easily.
  2. Different plans should be made for different purposes or different works.
  3. It should provide economy in terms of time and money and it should bring efficiency in the operations of management.
  4. The plan should be modified substantially because of change in external factor.
  5. The plan must be flexible in nature.
  6. The plan must be capable of being controlled.
BARRIERS OF EFFECTIVE PLANNING:-
  1. The problem of change is more comlex in long-range planning than in short-range planning.
  2. Lack of clarity of goal by manager and subordinates.
OBJECTIVES PF PLANNING:-
  1. To provide specific directiom to the organisation.
  2. To achieve defined goals of the organisation.
  3. To increase skillfullness.
  4. To provide information to internal and external person.
  5. To establish healthy organisation.
  6. To defeat competition.
  7. To ascertain future course of action.
  8. To forecast.
TYPES OF PLAN:




  1.  Objectives:- Objectives are the end results of every activity. They are the ends towards which the activities are directed.
  2. Strategy:- strategy ,eans comprehensive plan or long run plan to achieve the end result.
  3. Policies:- It is the organisation's own way of handling the problem.
  4. Procedure:- Procedure are the sequence steps to doing the work.                
  5. Rules:- Rules are specific statements that inform what is to be done. They donot allow for any flexibility.
  6. Programmes:- Programmes are the combination of objectives,policies, procedures and rules.
  7. Method:- Method is the way of doing the work.
  8. Budget:- Budget is the statement of expected result expressed in numerical terms.
 

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