Prevents hasty judgment – We can analyse a problem through a plan and consider the alternatives before taking a sound decision. 13. Rather one should use terms such as ‘complete the task by 30, An important supplier may let him down. Planning is a primary management function which every organisation has to undertake irrespective of its size, nature and origin. Thus, … Planning is also a costly exercise. 16. Contemporary organizations have restructured their vertical organizations into flat organizations. The success of planning depends on its effective implementation. Can you please add scopes of planning too. The building of a new dwelling, or extensive changes to existing buildings, usually requires planning permission. Lack of knowledge can be overcome through a well-connected communication system where managers at all levels remain informed of the organisational activities. It involves forecasts of future demand, market competition and government policies. For instance, a compensation plan based on a three-year salary negotiation is a proactive plan to ensure industrial peace. It fixes accountability on those empowered with resources and authority in respect of the results expected of them. For this purpose, planning comes as a solution whereby managers define broad objectives of organisation which are broken into departmental plans and then finally operational plans and budgets. An important supplier may let him down. According to Koontz and O’ Donnell “Plans are selected courses along with the management desires to coordinate group action.” The effective coordination integrates the physical and human resources between departments. It serves as the yardstick which can be used by the managers to exercise control over resources and activities. The plans might fail to guide the destiny of the organization. Great Article, how do I cite it, what date was it published and who is the author? Anyway, writers unanimously accept that planning is the primary function of all the other functions. Once alternative action plans have been determined, they must be evaluated with reference to considerations like cost, long-range objectives, limited resources, expected payback, risk, and many intangible factors to select the satisfactory course of action. Identifying the business that helps to meet a mission. very clear language all are understandable . The activity helps managers analyse the present condition to identify the ways of attaining the desired position in future. Anticipation of crisis – Careful planning will avoid the crisis which is likely to occur. By determining the objectives planning provides clear directions and guidelines to an organisation’s activities — both current and future. Improves competitive strength – Competitive strength is improved by adding new line of products, changes in quality and size of the product, expansion of plant capacity and changes in methods of work. Planning premises or assumptions may have a low degree of accuracy. Tourism planning is key to maintaining sustainable tourism and whilst some destinations do this very well, others (often developing countries), fail the recognise the importance of effective tourism development planning. Planning is the process by which managers establish goals and define the methods by which these goals are to be attained. The exercise is carried out by all three levels of managers — the upper, middle and lower. Planning increases the efficiency of an organization. Measures. Planning co-ordinates various business activities. , This is very straightforward ! Planning is necessary to implement the decisions. It is also possible that the assumptions need revision in the light of the changed circumstances. The derivative objectives focus on more details, that is, what is to be accomplished, where action is to take place, who is to perform it, how it is to be undertaken, and when it is to be accomplished. The formalisation of this process can also be used to motivate individuals to achieve objectives which they have helped to establish. During the process, the manager may need to go outside the work unit for information about products, competitors, markets, and the like. Documentation includes all actions required to define, prepare, integrate and coordinate additional plans. And choice involves decision-making. He may be a managing director or a foreman. It helps organisation to predict future events and prepare to take necessary actions against unexpected events. If the same compensation plan came up as a result of a flash strike, it would be a reactive plan. While planning, any one of the available alternatives is selected. Planning is based on the timely availability of reliable and complete information and accuracy of forecasts of demand, price and technology. Policies and procedures of the organisation provide a basis for the consistency of executive behaviour and action in matters of planning. It saves time, energy and cost and reduces red-tapism. Privacy Policy3. It serves as the yardstick which can be used by the managers to exercise control over resources and activities. The article was written by Surbhi S. on December 3, 2016, Your email address will not be published. It loses effectiveness due to delay in taking necessary action. If the assumptions are proved wrong, the selected alternative tends to be an incorrect one. It helps in making realistic assumptions about sales, costs, prices, products, technological developments, etc. Middle management looks after administrative planning and the lower level management looks after operational planning. The object is to overcome crisis situations as and when they arise. 10. (b) The existing benefits should be compared with future benefits that will accrue as a result of change and unwillingness of members to give up existing benefits should be removed. The establishment of objectives can, at times, be more important than the objectives themselves since their establishment emphasizes how various people and units fit into the overall organisation framework. Organisational members should realise that change is the essence of life and reduce resistance to change through the following measures-. It has a time horizon of five years or more. For instance, if an airline decides to acquire a fleet of new planes, it will be followed by the development of a host of derivative plans dealing with the employment and training of various types of personnel, the acquisition of spare parts, the installation of maintenance facilities, scheduling, advertising, financing and insurance. It is formal when planning is done as per the defined steps and documented, and informal when the documentation is not very rigorous. The following measures help to overcome the limitations of planning: Unwillingness to give up alternative goals can be overcome through scientific selection of goals. Limitations 13. Usually, there are several alternatives for any plan. Thus, it is not a surprise that planning will … Planning improves the behavioural climate in the organisation and reduces the friction between departments. Planners help communities create their preferred future – good planning makes progress toward paradise while bad planning leaves a legacy of problems and disputes. Tlieo Haimann – “Planning is deciding in advance what is to be done. Plans can be short, medium, or long term. In this way, management can reduce the internal organisational disturbances. Development of efficient methods – Planning helps the management develop efficient methods and procedures of action. A plan may be defined as detailed course of action designed today to do something tomorrow. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. Functional-level plans are made by departments, for example, a plan on how the marketing department will achieve its goals. Economy and certainty are considered while selecting the best alternative. Regular contact with outside parties, through seminars and conferences provides information about the environment. Share Your Word File 6. The problem they faced was that the use of ground water affects the neighbourhood and the socially aware neighbourhood brought the operations to a halt. Class A1 is use for the following purposes: * for the retail sale of goods other than hot food, * as a post office, It is symbolic to ‘looking ahead’ as is a process of chalking out future plan of action to be followed. Coca Cola had a bottling plant in Plachimada in Kerala, India. Planning motivates the employees as to what the organisation wants to achieve and defines it to the employees. It reduces the risks involved in modern business activities. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills.There are even a couple of tests to measure someone’s capability of planning well. Organisation structure in terms of customer, product or region etc. Planning work is done by every person who is working in a business unit. A change in buying habits of consumer may occur. When a manager plans, he projects a course of action, for the future, attempting to achieve a consistent, coordinated structure of operations aimed at the desired results.”. Planning requires a manager to set aside necessary time to do it. As per view of Peter F. Drucker, “Planning enables a manager to affect rather than accept the future”. Very nicely done. Due to rapidly changing environment, some companies are making shorter-term plans which allow for quick responses to customer needs and requests. Therefore, establishment of … It forces managers to find out new and improved ways of doing things in order to remain competitive and avoid the threats in the environment. (g) An open system approach involving continuous monitoring of environment should be adopted. Planning foresees the changes and uncertainties taking shape in future and devices methods to face them. Change through the following points will assist you to identify the assumptions proved... For constantly appreciating the article was written by Surbhi S. on December 3, 2016, your email address not. Or wrong responsive to the external environment may consider the alternatives before taking a decision... Help students to discuss anything and everything about Economics planning enables management to pursue long goals. 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