P is an intellectual
process of thinking, resorted to decide a course of action, which helps
achieve predetermined objective of organisation in future.
3.Economy in
operation – waste, duplication, mistakes, oversight, contingencies
4.Enhance
goal achievements
5.Reduce
competition within the organisation / improve cooperation
6.Build
unity and consistency in efforts
7.Build
flexibility – adjust and adopt to changes
8.Pragmatic
approach – helps to motivate
9.Continuous
process
10.Focus on S
W O T
Steps in P Process
1.Analysis
of external environment – socio, conomic, trends, trade cycles
2.Analysis
of internal environment- resource audit, S W O T analysis, availability,
profitability, capacity, experience, expertise
3.Determining
the objectives crystallizing the opportunities,
4.Establishing
the P premise / assumptions – forecasting market forces, buying capacity,
volume of sales, price, cost, taxes, technology, finance, H R
5.Examination
of alternatives courses of action – may not be apparent
6.Selecting
the best course – at a given time – objective decision
7.Establishing
the sequence of activities – time of introduction, departments to be included –
individual targets
8.Formula f
action programme – fixing time, drafting policies, preparing tables,
programmes, procedures, rules, regulations, commitment of resources,
communicating responsibilities and authorities
9.Determining
secondary plans – flow from the first plan – to expedite the achievements – e g
purchase plans, maintenance of plant and machinery, H R Training
10.Securing
participation of employees – involving – feedback, consultation
11.Follow up
and evaluation – continuously – standards, parameters, bench-marks – at
critical points- expertise used for quality results – observe between the lines
Kinds / Types of Planning
1.Objective
plans – basic plans
2.Standard
plans – ready guidelines for recurring problems – rules, regulations, policies
– ensures integrity, coordination, limits the freedom of managers
3.Master
Plans – small plans are added-up – in an orderly manner – for major activities