4 Aspects of Planning are :
- Definition of Planning
- Purposes of Planning
- Advantages and Potential disadvantages of planning
- Primacy of Planning
Planning is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives.
Planning is the systematic development of action porgrams aimed at reaching agreed business objectives by the process of analysing, evaluating, and selecting among the opportunities which are forseen.
PURPOSES OF PLANNING:
The protective purpose of planning is to minimize risk by reducing the uncertainities surrounding business conditions and clarifying the consequences of related management actions.
The affirmative purpose is to increase the degree of organizational success.
The fundamental purpose of planning, however, is to help the organization reach its objectives.
PLANNING: ADVANTAGES & DISADVANTAGES
A vigorous planning program produces many benefits.
First, it helps managers to be future oriented. They are forced to look beyond their everyday problems to project what situations may confront them in the future.
Second, a sound planning porgram enhances decision coordination. No decision should be made today without some idea of how it will affect a decision that might have to be made tomorrow.
The planning function pushes managers to coordinate their decisions.
Third, planning emphasizes organizational objectives. Because organizational objectives are the starting points for planning, managers are continually remind of exactly what their organization is trying to accomplish.
The downside is that if the planning function is not well executed,planning can have several disadvatnages for the organization.
e.g.: An overemphasized planning program can take up too much managerial time. Managers must strike an appropriate balance between time spent on planning and time spent on organizing, influencing, and controlling.
PRIMACY OF PLANNING:
Planning is the primary managerial function- the one that precedes and is the absis for the organizing, influencing and controlling functions of managers.
Only after manaers have developed their plans can they determine how they went to structure their organization, place their people and establish organizational controls.
FIRST STEP : PLANNING
SECOND STEPS: ORGANIZING, INFLUENCING, CONTROLLING
RESULTS: ACHIEVING OBJECTIVES
STEPS IN THE PLANNING PROCESS:
The planning process consists of the following 6 steps:
- State Organizational Objective
- List alternative ways of reaching objectives
- Develop premises on which to base each alternative
- Choose the best alternative for reaching objectives
- Develop plans to pursue the chosen alternative
- Put the plans into action.
Organizational objectives are the targets toward which the open management system is directed. Organizational input,process and output all exist to reach organizational objectives.
Properly developed organizational objectives reflect the purpose of the organization.
Organizational Purpose is what the organization exist to do, given a particular group of customers and customer needs. If an organization is accomplishing its objectives, it is accomplishing its purpose and thereby justifying its reason for existence.
Organizations exist for various purposes and thus have various types of objectives.
Therefore, its objectives are aimed at furnishing this assistance. The primary purpose of a business organization, in contrast, is usually to make a profit.