DEFINITIONS OF PLANNING :
1 .According to Alford and Beatt,
"Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action."
2 .According to Theo Haimann,
"Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action for further attempting to achieve a consistent co-ordinate structure of operations aimed at the desired results.
3. According to Billy E. Goetz,
"Planning is fundamentally choosing and a planning problem arises when an alternative course of action is discovered."
4 .According to Koontz and O' Donnell,
"Planning is an intellectual process, conscious determination of course of action, the basing of decision on purpose, facts and considered estimates."
Management begins with planning and planning begins with the determining of objectives.
In the absence of objectives no organisation can ever be thought about. With the determining of objective, the way to achieve the objective is decided in the planning.
(2) Planning is Primary Function of Management:
Planning is the first important function of management. The other functions come after planning . In the absence of planning no other function of management can be performed .
This is the base of other functions of management.
For example, a company plans to achieve a sales target of 112 lakhs a year. In order to achieve this target the other functions of management, i.e., organising , staffing , directing and controlling comes into operation.
(3) Planning is Pervasive:
Planning concerns all managers .Since the job of planning is performed by the managers at different levels working in the enterprise, it is appropriate to call it all-pervasive.
Planning is an important function of every manager; they may be a managing director of the organisation or a foreman in a factory.
The time spent by the higher-level managers in the process of planning is comparatively more than the time spent by the middle-level and lower-level managers.
It is, therefore, clear that all the managers working in an enterprise have to plan their activities.
For example, the decision to expand business is taken by the higher-level managers. The decision to sell products is taken by the middle-level and lower-level managers.
(4) Planning is Continuous:
Planning is a continuous process for the following reasons:
(a) Plans are prepared for a particular period. Hence, there is need for a new plan after the expiry of that period.
(b) In case of any discrepancy plans are to be revised.
(c) In case of rapid changes in the business environment plans are to be revised.
(5) Planning is Futuristic:
Planning decides the plan of action what is to be done, how is it to be done, when it to be done, by whom is it to be done all these questions are related to future. Under planning, answers to these questions are found out.
While an effort is made to find out these answers, the possibility of social, economic, technical and changes in legal framework are kept in mind. Since planning is concerned with future activities, it is called futuristic.
For example, a company is planning to market a new product. While doing so it shall have to keep in mind the customs and the interests/tastes of the people and also the possibility of any change in them.
(6) Planning Involves Decision Making:
Planning becomes a necessity when there are many alternatives to do a job. A planner chooses the most appropriate alternative. Therefore, it can be asserted that planning is a process of selecting the best and rejecting the inappropriate. It is, therefore, observed that planning involves decision making.
For example, Mr. Anthony lives in a town where only commerce stream is taught in schools. His daughter has passed matrix and wants to get admission in 10 + 1. It is evident that there is only one option for her, i.e., commerce.
She doesn’t have to think or plan anything. On the other hand, if all the three faculties’ art, science & commerce were available in the schools, she would have to definitely think and plan about the subject of study. It would have been be nothing but decision making in this case.
(7) Planning is a Mental Exercise:
Planning is known as a mental exercise as it is related to thinking before doing something. A planner has mainly to think about the following questions:
(i) What to do? (ii) How to do it? (iii) When to do it? (iv) Who is to do it?
(8) Plans are arranged in hierarchy :
2. The planning helps people in concentrating their efforts on the most important jobs rather than wasting time on the lesser important work.
3. The purpose of planning is also to minimize the cost of performance and eliminate unproductive efforts.
4. It also helps the management in adopting and adjusting according to the changes that take place in the environment.
5. Planning also provides a basis for teamwork as when the goals are properly defined assignments can be fixed and all the members can start contributing in the achievement of these objectives.
6. Planning gives a sense of direction and ensured that efforts are being put to useful purpose instead of being wasted. Planning also facilitate control because without planning there will be nothing to control.
NATURE / FEATURES OF PLANNING :
(1) Planning Focuses on Achieving Objectives:Management begins with planning and planning begins with the determining of objectives.
In the absence of objectives no organisation can ever be thought about. With the determining of objective, the way to achieve the objective is decided in the planning.
(2) Planning is Primary Function of Management:
Planning is the first important function of management. The other functions come after planning . In the absence of planning no other function of management can be performed .
This is the base of other functions of management.
For example, a company plans to achieve a sales target of 112 lakhs a year. In order to achieve this target the other functions of management, i.e., organising , staffing , directing and controlling comes into operation.
(3) Planning is Pervasive:
Planning concerns all managers .Since the job of planning is performed by the managers at different levels working in the enterprise, it is appropriate to call it all-pervasive.
Planning is an important function of every manager; they may be a managing director of the organisation or a foreman in a factory.
The time spent by the higher-level managers in the process of planning is comparatively more than the time spent by the middle-level and lower-level managers.
It is, therefore, clear that all the managers working in an enterprise have to plan their activities.
For example, the decision to expand business is taken by the higher-level managers. The decision to sell products is taken by the middle-level and lower-level managers.
(4) Planning is Continuous:
Planning is a continuous process for the following reasons:
(a) Plans are prepared for a particular period. Hence, there is need for a new plan after the expiry of that period.
(b) In case of any discrepancy plans are to be revised.
(c) In case of rapid changes in the business environment plans are to be revised.
(5) Planning is Futuristic:
Planning decides the plan of action what is to be done, how is it to be done, when it to be done, by whom is it to be done all these questions are related to future. Under planning, answers to these questions are found out.
While an effort is made to find out these answers, the possibility of social, economic, technical and changes in legal framework are kept in mind. Since planning is concerned with future activities, it is called futuristic.
For example, a company is planning to market a new product. While doing so it shall have to keep in mind the customs and the interests/tastes of the people and also the possibility of any change in them.
(6) Planning Involves Decision Making:
Planning becomes a necessity when there are many alternatives to do a job. A planner chooses the most appropriate alternative. Therefore, it can be asserted that planning is a process of selecting the best and rejecting the inappropriate. It is, therefore, observed that planning involves decision making.
For example, Mr. Anthony lives in a town where only commerce stream is taught in schools. His daughter has passed matrix and wants to get admission in 10 + 1. It is evident that there is only one option for her, i.e., commerce.
She doesn’t have to think or plan anything. On the other hand, if all the three faculties’ art, science & commerce were available in the schools, she would have to definitely think and plan about the subject of study. It would have been be nothing but decision making in this case.
(7) Planning is a Mental Exercise:
Planning is known as a mental exercise as it is related to thinking before doing something. A planner has mainly to think about the following questions:
(i) What to do? (ii) How to do it? (iii) When to do it? (iv) Who is to do it?
(8) Plans are arranged in hierarchy :
PURPOSE OF PLANNING :
1. Every plan should be linked with some objectives. The planning done by managers is aimed at achieving the organizational goals.2. The planning helps people in concentrating their efforts on the most important jobs rather than wasting time on the lesser important work.
3. The purpose of planning is also to minimize the cost of performance and eliminate unproductive efforts.
4. It also helps the management in adopting and adjusting according to the changes that take place in the environment.
5. Planning also provides a basis for teamwork as when the goals are properly defined assignments can be fixed and all the members can start contributing in the achievement of these objectives.
6. Planning gives a sense of direction and ensured that efforts are being put to useful purpose instead of being wasted. Planning also facilitate control because without planning there will be nothing to control.
