PLANNING AND PLANNING PREMESIS

WHAT IS PLANNING?

According to Knootz,

Planning is the intellectual process that

requires conscious determination of course of

action and taking decision on the basis of

purpose, knowledge and considered

estimates.

FEATURES/PURPOSE OF

PLANNING

Prioritizing

Determining task and resource

Scheduling time for completion

ESSENTIALS OF PLANNING

SYSTEM (GIVEN BY MURPHY)

• Clearly defined objective

• Clearly identified assumptions

• Rational appropriate and comprehensive

• Simple

• Flexible

Time bound

Balanced

Regular analysis and review

Utilize available resources and opportunities and new

resources

Proper coordination between short term and long term

plans

Free from psychological and social basis of planners

Adequate review and controlling mechanism

Strategic and Functional Planning :-Apply to the entire organization, Establish the

organization’s overall goals, Seek to position the

organization in terms of its environment, Cover

extended periods of time

Functional planning is undertaken by various

department in to the organization to determine their

respective , derived from the long term goals and

objectives.

Formal and Informal planning:-Informal planning takes place when a manager plans

institutively without any structure or rigid framework.

Formal planning involves a structured process of

investigation and action.

CATEGORIES OF

PLANNING

Ad hoc and Standing Planning :-Standing plans are often policies, procedures and

programs developed to ensure the internal operations

of a given business are operating smoothly. Examples

of standing plans include policies for employee

interaction, procedures for reporting internal issues in

the company and regulations in terms of what is

allowable and what is prohibited in the business.

Ad hoc plans are basically temporary plan which are

made in an organisation to enhance the process of

achievement of objective.

Administration and operational

planning :-Operational planning the details of how the overall

goals are to be achieved. Cover short time period.

Administration planning deals with the making of

policies to achieve a particular goal or objective.

Long term and short term planning :-It is the process of establishing long-term goals,

making our strategies, policies and programmes to

achieve these goals. It ranges from 5 years to 20

years or even more.

Short terms planning relates to a period of up to one

year. Such plans are made to achieve short term

goals.

PROCESS OF PLANNING

Determination of objectives

Development of Planning Premises

Determination of alternative courses of action

Evaluation of alternatives

Formulation of derivative plans

Planning of timing and operational Schedule

Securing people’s participation

Reviewing and controlling plan

Budgeting

PLANNING PREMISIS

Planning premises are defined as the

anticipated environment in which plans are

expected to operate. They include

assumptions or forecasts of the future and

known conditions that will effect the operation

of plans.

Internal Premises come from the business itself. It

includes skills of the

workers, capital investment policies, philosophy

of management, sales forecasts, etc.

External Premises come from the external

environment. That is, economic, social, political,

cultural and technological environment. External

premises cannot be controlled by the business.

Controllable Premises are those which are fully

controlled by the management. They include factors

like materials, machines and money.

Semi-controllable Premises are partly controllable.

They include marketing strategy.

Uncontrollable Premises are those over which the

management has absolutely no control. They include

weather conditions, consumers' behaviour,

government policy, natural calamities, wars, etc.

Tangible Premises can be measured in quantitative

terms. They include units of production and sale,

money, time, hours of work, etc.

Intangible Premises cannot be measured in

quantitative terms. They include goodwill of the

business, employee's morale, employee's attitude and

public relations.

Constant Premises do not change. They remain the

same, even if there is a change in the course of

action. They include men, money and machines.

Variable Premises are subject to change. They

change according to the course of action. They

include union-management relations.

BARRIERS TO PLANNING

LACK OF ACCURACY: In planning we are always

thinking in advance and planning is concerned with

future only and future is always uncertain. In planning

many assumptions are made to decide about future

course of action. But these assumption are not 100%

accurate and if these assumption do not hold true in

present situation or in future condition then whole

planning will fail.

PSYCHOLOGICAL BARRIERS: Generally the human

beings have a felling of uncertainty related to future.

People have preference for the present as compared

to the future. The employees fell making assumptions

and then changing them according to present

conditions involve lots of time and cost. So, it is

always advisable to take decision according to

present condition only.

HUMAN ELEMENT:-The manger who are performing

planning function are human beings may make

mistakes by making wrong assumption or by

selecting the wrong alternative to achieve the

objective of organization. The managers involved in

planning work may also mislead or misguide the

employees by giving priority to personal objective

rather than organizational objective.

CONCLUSION

The above points show that planning is not a

substitute for success of a organization

because it suffers from many limitations. But

is does not mean that managers should not

perform planning function, rather they should

perform planning keeping in mind the

limitations of planning and then try to

overcome these limitations.