Planning can be defined as “ thinking in advance what is to be done , when is to be done , how’s to be done and by whom it should be done.”Planning bridges the gap between where we are and where we want to reach .
Also Read: Steps Involved in Planning
Nature of Planning
- Goal Oriented :Its of no use unless it contributes in positive way to the achievement of desired goals.
- Intellectual and Rational process: Managers require to apply their imagination,creativity and their analytical skills to tackle problematic situation. They also requires foresight and sound judgement .
- Primary Function :Initial activity in management process and thus precedes all other functions.
- Integrated Process :Plans made at different levels are interpendent and interrelated .Plans constitute hierarchy in the organization .Plans must be in tandem with corp objectives.
- Involves Choice : Essentially a decision making process that involves selection of suitable course of action. Only the best among the alternatives to be selected. Thus plans are decisions made after evaluating alternative course of action.
- All pervasive : Extends throughout the organizations. Essential aspect at all executives level . Scope extent and nature nature of planning tend to vary at different levels of management.
- Forward Looking :Concerned with anticipating the future.Accurate forecasting is essential for planning.
- Perpetual Process Goes on as long as organization exits .Plans are changed or modified but are never abandoned.
SIGNIFICANCE OF PLANNING
1.Focus attention on objectives: Helps organization to device means to achieve objectives .Prevents managers from being distracted from by less significant activities.
2.Offsets, Uncertainity and Risk : As plans are based on forecast which may go wrong due to PESTEL environment and therefore contingent planning is required to reduce risk .
3.Provides sense of direction :Absence of planning makes it difficult for managers to have direction.
4.Provides Guidelines for Decision Making :It involve finding out alternatives and comparing them to select appropriate action.
5.Ensures Better Coordination :Well developed organization plan unify interdepartmental activities so that they work together to achieve objectives of organization.
6.Facilitates Control :Function of control is to ensure that activities being carried out conform to the plans that have been developed.
7.Encourages Innvotation and Creativity :By involving employees, the process of planning encourages healthy work atmosphere. Encourage to device new ways of doing things.
8.Facilitates Delegation:Well established plans act as guide to subordinates, thus eliminating the need for constant guidance by managers.
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SIGNIFICANCE OF PLANNING Nature of Planning