The nature and characteristics of planning may be stated as follows: Planning is an intellectual and rational process. They may be production policy, sales policy, financial policy, personnel policy etc. Planning is the synthesis of various forecasts—short-term or long-term, special or otherwise. These, in turn, are supported by the specific objectives for the departments. Different procedures are adopted in different areas of business activities. The actual demand level of the market may be of different states – weak, adequate, excessive etc. All the steps in the process of planning must be linked and co-ordinated with each other. By Blair Potter | Aug 21, 2018. Strategies are the devices formulated and adopted from the competitive standpoint as well as from the point of view of the employees, customers, suppliers and government. 4. In this function, managers define the organizational goals and allocate resources of the organization to achieve such goals. Since planning is concerned with future activities, it is called futuristic. Planning is the key to success of an organisation. Being the first element of management defined by Fayol, planning is making a plan of action to provide for the foreseeable future. It must be based on clearly defined objectives. As a result of such attention, it becomes possible for the planners to determine the policies, procedures, programmes and the rules for an orderly advance towards the ultimate goals desired to be achieved. Planning is known as a mental exercise as it is related to thinking before doing something. All these steps in planning lead automatically to economy. Thus, planning has assumed great importance in all types of organisation—business or non-business, private or public sector, small or large. Planning refers to the process of deciding what to do and how to do it. For example, the policy may be the recruitment of personnel from all parts of the country; but procedures may be to advertise and invite applications, to take interviews and offer appointment to the selected personnel. Nature and Characteristics of Planning 3. (i) Planning Focuses on Achieving Objectives. There may be several departmental budgets which are again integrated into the master budget. For example, a company is planning to market a new product. It is the process by which managers establish goals and define the methods by which these goals are to be attained. Planning is considered the first primary function of management. Planning leads to achieve a coordinated structure of operations. It is evident that there is only one option for her, i.e., commerce. In other words, procedures are the methods by means of which policies are enforced. A good system of planning should be responsive to the opportunities for innovation. With project management, the process is well defined and flows from one step to the next in an ordered manner. (c) In case of rapid changes in the business environment plans are to be revised. Programmes are precise plans of action followed in proper sequence in accordance with the objectives, policies and procedures. The essence of planning is the choice among alternative courses of action. It anticipates future events and sets the course of action to control these events to one’s advantage. The important principles may be stated as follows: This means that certain resources must be committed or pledged for the purpose of planning. The manner in which each work has to be done is indicated by the procedures laid down. This is needed for improvement in the quality of planning. Planning is the most basic of all managerial functions. Managerial decisions can be categorized according to three interrelated business processes: planning, directing, and controlling. These involve reflective thinking which signifies problem-solving thought process—a process by which past experiences are superimposed on the facts of the present situation and possible future trends. Strategies thus may be internal and external. After the best alternative is decided upon, the next step is to derive various plans for different departments or sections of the organisation to support the main plan. Therefore, planning may be defined as follows: Planning is the process by which the managers of an organisation set objectives, make an overall assessment of the future, and chart the courses of action with a view to achieving the organisational goals. It will, thus, add to the quality of planning through the knowledge of additional facts, new visions and revealing situations. Planning involves selection of suitable course of action. This job will be performed under staffing. Q5: “Principles help managers to take decisions while performing functions of management.” True, Principles are guidelines to take actions; False, Functions of management are not related with Principles of Management; Partly True, Principles denotes cause and effect relationship which may help functions Scope of Management Science. In thinking of objectives, alternative courses of action and, above all, in making decision for choosing certain alternatives, the planner goes through an intellectual process. Brief Intro 20 yrs in FM started from Tech Officer 6 yrs in operation 4 yrs in management include BD 4 yrs in strategic planning 3 yrs in event management & brand marketing 5yrs in reengineering consulting and training . Similarly, in respect of sales procedure, rule may be enforced that all orders should be confirmed the very next day. Innovation is achieved through research and development and planning is required to provide such scope. The next step in planning process is to search for various alternative courses of action based on the organisational objectives and planning premises. In order to achieve this target the second function of management, i.e., organising comes into operation. Content Filtrations 6. Every lower-level plan serves as a means towards the end of higher plans. This allows timely changes in the planning and makes it more effective. The other functions, e.g., organising, staffing, directing and controlling come later. Planning occurs at many levels, from day-to-day decisions made by individuals and families, to complex decisions made by businesses and governments. (ii) How to do it? For example, production planning depends upon sales planning—and vice versa. cannot be an isolated act apart from sales planning and production planning. Programming involves dividing into steps the activities necessary to achieve the objectives, determining the sequence between different steps, fixing up performance responsibility for each step, determining the requirements of resources, time, finance etc. Planning pervades all managerial activities. In planning, the manager evaluates the alternatives on the basis of efficiency. For example, one alternative may be the most profitable but requires heavy investment; another may be less profitable but also involves less risk. Rule is related to parts of a procedure. Every manager is required to plan first for systematic and orderly performance of his assigned duties. Planning is said to be the most basic and primary function of management. depending upon the situation. Alternative course of action may be required to be undertaken in future in changed situations. 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For example, if an organisation has set its objective to grow further, it can be achieved in several ways like expanding the field of business or product line, joining with other organisations, or taking over another organisation, and so on. It also serves as a very important control device by measuring the performance in relation to the set goals. None can be a planner whose mind is not active, who does not possess any deliberate power and whose sense of judgement is not strong. This hierarchy can be built up by coordinating the plans of different departments. Report a Violation. (ii) Planning is Primary Function of Management. This paper focuses on community land use and transport planning, but most principles described apply to any planning activity. 2. Policies are statements or principles that guide and direct different managers at various levels in making decisions. Correct execution of each of these activities culminates in the creation of business value. But all plans must contribute in a positive way towards the achievement of the enterprise objectives. ‘Planning Premises’ are planning assumptions relating to the expected environmental and internal conditions. As a managerial function, planning is important for the following reasons: The first and most important reason for planning lies in the fact that it provides a basis on which decisions are made.