4 H

CHAPTER-4

Planning

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   Planning

Ø Planning : It means setting objectives and formulating an action plan to achieve them. It includes deciding in advance what to do, how to do, when to do and who is going to do it.

Ø Features of Planning

(i)      Planning focuses on achieving objectives : It defines objectives and prepares action plan to achieve them.

(ii)    Planning is primary function of management : It lays down the basis for all other functions of management.

(iii)  Planning is pervasive : It is required in all organisations, at all levels and in all departments.

(iv)  Planning is continuous : Once a plan is framed and implemented, it is followed by another plan and so on.

(v)    Planning is futuristic : It involves looking ahead and preparation for the future.

(vi)  Planning involves decision making : It involves choice amongst various alternative courses of action.

(vii)   Planning is a mental exercise : It is an intellectual activity of thinking than implementation.

Ø Importance of Planning

(i)      Provides directions : By stating in advance how the work is to be done.

(ii)    Reduces the risks of uncertainty : By looking ahead, anticipating changes and developing managerial responses to them.

(iii)  Reduces overlapping and wasteful activities : By coordinating the activities and efforts of different divisions, departments and individuals.

(iv)  Promotes innovative ideas : By intelligent application of mind and imagination and foresightedness to make a concrete plan.

(v)    Facilitates decision making : By making a choice amongst the alternative courses of action.

(vi)  Establishes standards for controlling : Against which actual performance is measured.

Ø Limitations of Planning

(i)      Leads to rigidity : Once a plan is drawn, the managers may not be in a position to change it.

(ii)    May not work in a dynamic environment : It is difficult to assess future trends accurately, which is essential for effective planning.

(iii)  Reduces creativity : Middle level and lower level managers have to just implement the plans framed by top management without any deviations.

(iv)  Involves huge costs : Cost is incurred on discussion with professional experts, preliminary investigation, etc.

(v)    Time-consuming : A lot of time is consumed in the collection and analysis of data, choice of alternative, etc.

(vi)  Planning does not guarantee success : Previous successful plans may not work again in the future. It is not a solution to all the problems.

  Planning Process

Ø Planning Process

(i)     Setting objectives : Objectives are set for the entire organisation and its each department.

(ii)   Developing premises : Assumptions about future events are established.

(iii) Identifying alternative courses of action : All the alternative courses of action are identified.

(iv) Evaluating alternative courses : The positive and negative aspect of each alternative is evaluated.

(v)   Selecting an alternative : The most feasible, profitable and with least negative consequences alternative is selected as plan.

(vi) Implementing the plan : The selected plan is put into the action.

(vii)                   Follow up action : In case of any deviations, changes are made in the plans.

  Types of Plans

Ø Types of Plans

(i)   Standing Plans : These plans are formulated once and are used repeatedly over a long period of time.

(a)   Objective : It is the end which management seeks to achieve by its operations.

(b)   Strategy : It is a comprehensive plan for accomplishing organisational objectives.

(c)   Policy : It is a general statement that guides thinking or channelise energies towards a particular direction.

(d)   Procedure : It is a chronological sequence in which an activity should be performed.

(e)   Method : It is the prescribed way or manner in which a task has to be performed.

(f)    Rule : It is a specific statement that informs what is to be done and what is not to be done.

(ii)   Single Use Plans : These plans are formulated to meet the requirements of a particular situation or to accomplish specific objectives. They are non-repetitive in nature.

(a)   Programme : It is a detailed statement about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.

(b)   Budget : It is a statement of expected results expressed in numerical terms.

Ø Difference between single use plans or standing plans

S.No.	Basis of	Single Use Plans	Standing Plans
	Difference
(i)	Meaning	A single-use plan in a business refers to	A  standing  plan  in  a  business  refers  to
		plan developed for a one-time project	plan  developed  for  using  over  and  over
		or event that has one specific objective.	again because they focus on organisational
			situations that occur repeatedly.
(ii)	Objective	Single use plan is developed to carry	Standing  plan  however  is  developed  for
		out a course of action that is not likely	activities that occur regularly over a period of
		to be repeated in future time.	time
(iii)	Scope	Single use plans generally encompass	Standing plans generally encompass a wider
		a  narrow  scope  targeting  a  specific	scope involving more than one department of
		project or event.	business function.
(iv)	Stability	Single use plans are discarded when	Standing  plans  are  relatively  stable  and
		the situation, project or event is over.	used over and over again with necessary
			modification or updating.
(v)	Examples	A new cash budget is prepared every	Recruitment and selection procedure for a
		year in the organisation.	particular post in the company