HSA 171 CAR. 1436/4/19  Planning.  What is Planning.  Importance of Planning.  Nature of Planning.  Characteristics of Planning.

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Presentation transcript:

HSA 171 CAR

1436/4/19

 Planning.  What is Planning.  Importance of Planning.  Nature of Planning.  Characteristics of Planning.

Planning

 Planning is deciding in advance: ◦ What to do? ◦ How to do? ◦ When to do? ◦ Who is going to do?

Decision Making to determine future directions Where we want to be in the future? Where are we now? How are we going to do it?

 The process of establishing goals and a suitable course of action for achieving those goals. It requires decision making  Sets the goals of an Organization.  Bridges the gab from where we are & where we want to be.

 The primary object of Planning is to achieve better results.  It involves the selection of organizational objectives, and developing policies, procedures, programs, budgets and strategies.  Planning is a continues Process that takes place at all levels of Management.

 Koontz and O’Donnell have defined planning in terms of future course of action. They state that “Planning is the selection from among alternatives for future courses of action for the enterprise as a whole and each department within it ”.

 The necessity of planning arises because of the fact that business organizations have to operate, survive and progress in a highly dynamic economy where change is the rule, changes gives rise to the problems and throw countless challenges.

 Planning minimizes uncertainty.  Planning e mphasis on objectives.  Planning promotes coordination.  Planning facilitates control.  Planning improves competitive strength.  Planning is an economical operation.  Planning encourages innovation.  Planning tackling complexities of modern business.

 (a) Minimizes uncertainty: The future is generally uncertain and things are likely to change with the passage of time. Planning helps in minimizing the uncertainties of the future as it anticipates future events.  (b) Emphasis on objectives: The first step in planning is to fix the objectives. When the objectives are clearly fixed, the execution of plans will be facilitated towards these objectives.

 (c) Promotes coordination. Planning helps to promote the coordinated effort on account of pre- determined goals.  (d) Facilitates control. Planning and control are inseparable in the sense that unplanned actions cannot be controlled. Control is nothing but making sure that activities conform to the plans.

 (e) Improves competitive strength. Planning enables an enterprise to discover new opportunities, which give it a competitive edge.  (f) Economical operation. Since planning involves a lot of mental exercise, it helps in proper utilization of resources and elimination of unnecessary activities. This, in turn, leads to economy in operation.

 (g) Encourages innovation. Planning is basically the deciding function of management. Many new ideas come to the mind of a manager when he is planning. This creates an innovative and foresighted attitude among the managers.  (h) Tackling complexities of modern business. With modern business becoming more and more complex, planning helps in getting a clear idea about what is to be done, when it is to be done, where it is to be done and how it is to be done.

 Planning is goal-oriented.  Planning is forward looking.  Planning is a mental activity.  Planning Involves decision making.  Planning is primary function and a continues process.  Planning is all pervasive.  Planning is Flexible.

 The nature of planning can be highlighted by studying its characteristics, they are as follows:  ( a)-Planning is goal-Oriented: Every plan specifies the goals to be attained in the future and the steps necessary to reach them. A manager cannot do any planning, unless the goals are known.  (b)-Planning is forward Looking: Planning is in keeping with the edges. Thus, planning means looking ahead. It is performed to accomplish some objectives in the future.

(c)- Planning is a mental activity: Planning is not a simple process. Its an intellectual exercise and involves thinking and forethought on the part of the manager. (d)- Planning is essentially decision making: Planning involves finding alternatives and the selection of the best. Thus decision making is the cardinal part of planning.

 (e)- Planning is the primary function: Planning logically precedes the execution of all other managerial functions, since managerial activities in organizing, staffing, directing and controlling are designed to support the attainment of organizational goals. Thus, management is a circular process beginning with planning and returning to planning for revision and adjustment.

 (f)- Planning is all pervasive: Planning is the basic function of managers at all levels, although the nature and scope of planning will vary at each level.  (g)- Planning is flexible: Planning is a dynamic process capable of adjustments in accordance with the needs and requirements of a situations. Thus planning has to be flexible and cannot be rigid.