Nature & Process Of Planning SUBMITTED BY: Peyush raj singh sodhi (172) Devendera maurya (138) SUBMITED TO: Mrs. KRITI MAHAJAN

Meaning And definition The meaning of the word ‘planning ‘ is a paradox . To some, means everything a person does, to others it is a specific activity. Some take planning as synonymous with decision–making. This is erroneous. Hart. “The determination in advance of a line of action by which certain result are to achieved.”

NATURE OF PLANNING PLANING, AN INTELLECTUAL PROCESS PRIMACY OF PLANNING ALL MANAGERS PLAN PLANNING : A RATIONAL APPROACH

PLANNING , AN INTECTUAL PROCESS Planning is intellectual in nature; it is mental work. The facts relevant to the situation are related to the manager’s experience and knowledge. A planner must visualize the situation likely to develop in future. He should develop a future course of action to be taken for implementation of plans.

Primacy Of Planning Planning is the first function of a planner. Other functions like organizing, staffing, directing, controlling, etc. . are followed by planning. Without planning no other functions can be performed. How can a manager set up an organisation without having a plan in mind ? How can he appoint and direct staff without deciding the objectives? It can be sad that planning is the function that needs to be done first of all.

All Managers Plan Every manager in an organisation has a planning function to perform. It may also be said that planning is a fundamental managerial function. The pervasiveness of planning is generally over-looked. It is felt that planning is done at top levels only. This may be true to certain extent that people at top level devote most of their time to planning than the managers at middle and lower levels of management but every manager at his level activity has to plan his activities.

Planning : A Rational Approach Planning process is a rational approach to the achieving of organisational goals. An action is rational if it is objectively and intelligently decided. The aim of management is to reach the goals with the application of appropriate resources. Planning suggests a number of alternatives for reaching the goals. Future is always uncertain but planning process provides a rational approach for suggesting alternative approaches to various situations.

The Six P’s Of Planning Purpose: The first need of planning is the purpose. An effective planning requires a clear understanding of the purpose of planning. The reasons for the existence of the organisation may be to increase profits or increase market share or introduce more products etc. Philosophy; It states the beliefs as to how the organisation’s purpose is to achieved. The philosophy of an organisation may be based on profitability through quality or increasing turnover through consumer satisfaction etc. Promise: It is an assessment of strengths and the weaknesses of the organisation based on the knowledge and assumption of the environment. With the help of business forcasting and other methods some conclusion are made for the future environment trends. Policies: Policies are the general statements for the guidance of the personnel. They are the guidelines and constraints which aid in management thinking and action. Plans: These are the objectives and action statement. Objectives are the goals of an organisation and action statements are the means of achieving them. Priorities: An organisation must fix goal priorities. The resources of finance, materials, personnel, etc. are limited and these are to be allocated as per the priorities set.

PURPOSE PROMISE PRIORITIES PLANS POLICIES 6 PHILOSOPHY PROMISE PRIORITIES PLANS POLICIES 6

REASONS FOR PLANNING Essential for modern business Related to performance Focus on objectives Proper allocation of resources Facilities control Helpful in decision making Avoiding business failures

Principle of commitment Principle of contribution to objectives Principle of primacy of planning Principle of competitive strategies Principle planning premises Principle of alternatives Principle of commitment Principle of flexibility timing

APPROACHES TO PLANNING Top-Down approach Bottom-Up approach Composite approach Team approach

Advantages of Planning Attention on objectives Minimizing Uncertainties Better utilisation of Resources Economy in operations Better co-ordination Encourages innovation and creativity Management by exceptions possible Facilitates Control Facilitates Delegation

Limitations of Planning Lack of reliable Data Time Consuming Process Expensive External Factors May Reduce Utility Sudden Emergencies Resistance to Change

Planning Process Recognizing Need For Action Gathering Necessary Information Laying down objectives Determining planning premises Examining alternative course of action Evaluation of action patterns Determining secondary plans Implementation of plans

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