NATURE, IMPORTANCE AND PURPOSE OF PLANNING process

INTRODUCTIONDefinition of planning Considered as the most basic and parent exerciseIt answers all basic questions

Nature of planning

Planning is goal orientedContinuous and ongoing process (ex: movement of a ship)It is a pervasive function- It is done by managers at all levelsFlexible in nature. (ex: colour television)

Contd.Intellectual process- involves choice and decision makingIt is an integrating process-improper planning results in random activity

Schematic Representation

Importance and purposeMinimizes uncertainty and risk-helps in decision making (ex: refrigerator)Gives a clear view of the future-forecastingLeads to effective use of resources and economic operationEffective control-planning and control are inseparable and interdependent

Helps to search from various alternatives (ex: selection from various models)Helps to identify potential opportunities and threats (ex: increase production when there is demand)Leads to development of business strategies and budget planning

Contd.

Planning is useful for teamworkSense of direction and purposeConveying informationBuilding trustDividing responsibility Simplifying goals is possible through planning

Contd

Schematic Representation

LIMITATIONS OF PLANNINGLack of reliable data-reliable information is not availableLack of initiative-manager fails to take initiativeCostly process-time consuming and expensive processRigidity in organizational working

Non-acceptability of change-a commonly experienced phenomenon External limitations-very difficult to predictPsychological barriersContd.

SUMMARYA good plan must be-Specific and simpleLogicalComplete and integratedFeasibleFlexible-capable of being controlled

Planning is deciding in advance what is to be done in future. ~Koontz. Plans are only good intentions unless they immediately degenerate into hard work. ~Peter Drucker

Thinking is the hardest work there is, which is probably the reason why so few engage in it... ~Henry Ford.

"Planning is a trap laid down to capture the future." ~Allen

Even if you're on the right track, you'll get run over if you just sit there. ~Will Rogers.

Planning without action is futile, action without planning is fatal. ~Unknown.

It's not the plan that is important, it's the planning. ~Dr Graeme Edwards.