What Is Planning In Management?
Introduction
If you are a business owner, manager and entrepreneur then you must have to know the Planning In Management System in the organisation. In simple words Planning in management refers to the process of setting goals, creating a path to achieve organisational goals and defining the actions and resources required to achieve business objectives.
Proper Planning In Management System is very much essential for achieving organisational goals, objectives and success. In this article, we will read the concept, nature, types, importance, Benefits, and process of Planning in the management system of the business organisation.
What Is Planning?
Planning is the most basic of managerial function sense; it involves deciding of future course of action.
Planning is the process of deciding in advance what is to be done, who is to do it, how it should be done and when it should be done. It is the determination of a course of action to achieve the desired results.
In the other words, O’Donnell Planning is an intellectually demanding process. It requires the continuous determination of course of action and considered estimates.
Planning involves anticipation of the future course of events and deciding the best course of action. It is basically a process of thinking before doing which bridges the gap between where we are and where we want to go.
Nature or Concept Of Planning In Management
For the sake of clarification there are some important nature’s of planning are discussed below:
Planning is an intellectual activity
Planning involves vision and forecasting the thing to be done in future. It is a managerial work which depends upon the mental thinking of the managers. It develops a future course of action to be taken for implementation of plans.
Planning involves selection among alternatives
Planning is a choice activity, this process involves finding of alternatives & selection of the best alternatives. It helps the organisation to achieve the specified objective through the internal part of planning.
Planning is forward looking
Planning means looking ahead. It is carried out to achieve some objectives in future. It may involve forecasting future events such as customer demand, government policies, compensation etc. Therefore Planning is considered as futuristic in nature.
Planning Focuses on objective
Every Plan specifies the objectives to be attained in the future and the steps necessary to achieve them. The objectives influence the future course of action. If the objectives are not properly planned then the efforts spent on them will be unused.
Planning leads to efficiency & economy
Planning involves the efficient utilisation of various resources like capital, labour, machinery etc. Every factor of production is put to efficient & economical use, so that the output is more than the effort planning helps in duplication of effort which also ensures economy.
Planning is pervasive in nature
Planning is an important function for all management. The character and breadth of planning may vary with the authority and nature of the policies but it must be outlined by the all superiors of every organisation.
Planning is a continuous function
Planning is a never ending activity of managers. It is always challenging and subject to revision & amendments as now facts come to know even in the execution of planning, there may be a change in setting and conditions. It is always necessary whether the organisation is going on in a comfortable situation.
Planning is realistic
Planning is based on future forecasts, though the future is always uncertain, but the predictions should be realistics as far as possible. The objective should be realised with normal efforts if planning is based on wishful thinking then it will not be possible to achieve the goals.
Coordination
Coordination is necessary for harmonious working of the organisation. Planning coordinates the what, who, how, why and where the things are to be done in the absence of planning different segments of the organisation may pursue different objectives.
Process Of Planning In Management
The Planning process involves the setting up business objectives and allocation of resources for achieving them. It determines the future course of action for utilising the various resources in the best possible way. It is a combination of information handling and decision making system based on information inputs, outputs & feedback.
Steps In Planning Process
Following are the steps which are followed in Planning process:
Establishing Objectives
Planning is an intellectual process which an executive carries out before he does any job with the help of other people. The formation of their objective which they have established. A beginning should be made only after going through a detailed analysis of new opportunities.
Gathering necessary information
Sufficient information must be collected in order to make the plans & sub-plans. Before actual planning is intimated relevant facts and figures should be collected. All information relating to operation in business should also be collected.
Laying down objective
Objectives are the goals, which the management has to achieve. The objectives are the end product and all energies are diverted to achieve the goals. Goals are a thread which bind the whole company. Therefore the objective should be properly communicated to all members of the organisation.
Determining Planning Premises
This step involves assumption concerning the behaviour of internal & external factors. It helps in making realistic assumptions about sale, price, product, technological development, consumers preference etc. In the future if the forecast of these factors are accurate then planning will be more reliable.
Examining alternative course of action
Usually these are several alternatives to the plans. The planners must try to find out all the possible alternatives and a final selection should be made among them. Best result will be achieved only when the best way of doing the work is selected. All the pros & cons of methods should be weighed before final selection.
Evaluation of action pattern
Evaluation of course of action should be there after choosing a course of action. Evaluation involves the study of performances of various actions. Money quantitatives techniques are available to evaluate the action plans in order to reach the most required results of the organisation.
Determining Secondary Plan
Once a main plan is formulated a number of supported plans are also required, in fact secondary plans are meant to be implemented by the subordinates in order to achieve the prime objective of organisation.
The Benefits Of Planning In Management
The benefits of planning in the management system of the business enterprise provided a roadmap to achieve the future need and goal. Some of the benefits of the planning in management system are highlighted below;
- Effective Planning in management helps organisations to allocate better resources.
- Effective Planning increases efficiency by eliminating unnecessary steps & streamline processes.
- Planning in management improved the decision making power to avoid critical situations.
- Planning provides a better direction and clarity to the management system of business organisation.
How to Implement Planning In Management
To implement Planning in management requires a systematic approach for the better result and advantages. Here some of the important step are highlighted below;
Define the Goals
The first step in planning is to identify the organisational goal to achieve it. This is the primary step of planning in the management system for both small and large scale organisations.
Conduct a SWOT Analysis
After identifying the goal of the organisation the next step is to conduct a SWOT Analysis to identify the strength, weakness, threats and opportunities towards business. This step will help the organisation both internally & externally.
Develop a Plan
After the SWOT Analysis the next step is to develop a plan to clear the issues and weakness towards business.
Implement the Plan
After developing a plan the next step is to implement the plan to track or fix the issues and errors.
Evaluate and Improve the Plan
After implementing the plan the next step is to evaluate the plan by tracking regularly and identifying the gaps. Planning is an interactive process and it needs continuous improvement for long term business success.
