STEPS INVOLVED IN PLANNING
Planning is a process which determines in advance what to done, how to done and when to done. It consists of selecting the enterprise objectives, policies, programmes, procedures.
1) Identification of goals– Plans are formulated to achieve certain objectives. Therefore, the first step in the planning process is to identify the goals of the organization. The objective fixed must clearly indicate what is to be achieved where action should take place and who is to perform it and when it is to be accomplished. For example, quantity standards, cost target and quality specification are measurable objective.
2) Develop planning premises– Planning is done for future which is uncertain. Therefore, certain assumptions are made about the future environment. These assumptions are known as planning premises. Planning premises lay down the boundary or limitation within which plans are to be implemented, in order to develop good planning premises, it is necessary to collect dada on the current status of the organization and to forecast future changes
3) Determine alternative courses of action– generally there are alternative ways of achieving the same goal. For example in order to increase sales, an enterprise may launch advertise campaign reduce prices or improve the quality of products. Therefore alternative courses action should be determine
4) Evaluate the alternative– once alternative courses of action have been determined, they must be evaluated. It can be evaluated against the criteria of cost, risk, benefit and organization facilities. The strong and week point of every points of every alternative should be analyzed carefully.
5) Select course of action-The most appropriate alternative is selected as the plan. This is the point of decision where a plan is adopted for accomplishment identified goals.
6) Formulate derivative plans– the final step in planning process is to develop sub-plans. In order to give effect to and support the basic plan, several sub plans are required. Once the choice is made and the master plan is adopted functional and tactical plans and action programs are decided. The breakdown of the master plan into departmental and sectional plans provides a realistic picture of the action to be taken in future.
Also Read: Nature of Planning
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STEPS INVOLVED IN PLANNING STEPS INVOLVED IN PLANNING STEPS INVOLVED IN PLANNING STEPS INVOLVED IN PLANNING