CHAPTER-03
PLANNING
3.1 What is meant by Planning?
Planning is the first function in management process. In other words, the
wheel of management process starts moving with planning. It is deciding in
advance what is to be done. It is the blue print of tomorrow’s actions.
Bartol & Martin said that, “Planning is the management function that involves
setting goals and deciding how best to achieve them”.
3.2 Significance or Importance of Planning
Planning is the first function of management process. In other words, the wheel
of management process starts moving with planning. Actually planning is
deciding in advance what is to be done. It is the design for tomorrow’s action.
We can’t plan for the past as planning relates to future. But future is always
uncertain and unknown. We can’t say what is exactly going to happen. So,
planning is a complex and risky job on the part of the managers as we have
very little knowledge about future happenings.
Planning answers the following three questions1. Where are we now?
2. Where do we want to go?
3. How can we go there from here?
If a manager can know these above-mentioned questions, then we can say that,
he or she has made a very good plan. To get answer of these three questions
mentioned above, a manager should do the following activities1. Assessment of the present condition
2. Setting goals and objectives
3. Taking action plan
Planning is the process which does not end after it is made. Plans are to be
implemented. A manager may take a very good plan, but it will not carry any
result if it is not implemented. If a manager is not serious about the
implementation of the plan, he or she is simply wasting the recourses (time,
money, energy etc). Therefore, we expect that, our managers should not only be
a thinking manager, rather they should also be an action manager.
In conclusion we can verily say that, if there is no plan, our philosophy of life
will be “to let thing happen and we are to accept it”. But as a rational human
being we can’t accept this philosophy of life. Our philosophy of life should be
“to make thing happen and to influence the future”. In fact, if we want to
design our future and if we want to make thing happen, we must have a plan.
Here we have a simple message to our managers that,
“First plan your work and then work your plan”
3.3 Planning Process
There are several steps in planning process. We have to follow these steps to
make our plan successful.
Step-1: Define the problem
Step-2: Identify the critical factors (time, money, effort, and other resources)
Step-3: Develop the possible alternatives
Step-4: Analyze the possible alternatives
Step-5: Select the best alternative
Step-6: Implement the selected alternative
Step-7: Establish evaluation and controlling system
3.4 Types of Planning
Plans can be divided into many types based on their nature, organizational
level, and time duration. Let’s discuss each of these types one by one in brief1. Based on nature
Plans can be of two types based on nature. These are as followsa) Single use Plan
b) Standing Plan
Now we shall make ourselves understood about these two types of plans by
making comparison between these twoSL
Single use plan
1
Single use plan is a plan which Standing plan is a plan which is
is
made
function
for
and
Standing plan
a
particular made once and used repeatedly for
losses
its the same function.
effectiveness after the function
is over.
2
Expensive
Less expensive
3
Diversification
Standardization
4
For example Project.
For
example
procedure
program,
policy,
2. Based on organizational Level
Plan can be of three types based on organizational level. These are as follows
a) Strategic plan: It is a plan which is developed by top level management for
achieving the organizational goals.
b) Tactical Plan: Tactical plan is a plan which is developed by mid-level
management for implementing the strategy.
Short Note: What are the differences between Strategies and Tactics?
c) Operational Plan: It is a plan which is developed by lower-level management
for implementing the tactical plan. Operational plan is usually made for
managing operating people.
3) Based on Time: Plans can be divided into three types based on time duration.
These are as follows:
a) Short-term Planning: This type of plans usually covers less than one year
b) Mid-range Planning: This type of plans usually covers from 1 to 5 years
c) Long-term Planning: This type of plans usually covers more than 5 years