Long-term goals are the milestones a company sets to guide operations toward their far-reaching objectives. They are applied as and when required. Planning has to find out several alternatives, estimate the feasibility and profitability of the different alternatives, and to choose the best one out of them. What is the Importance of Planning in Management? A. Any deviation of rule entails penalty. Sometimes evaluation shows that more than one alternative are equally good. So decision-making has a pervasive influence upon planning and it is a part of the planning process. For ensuring that the selected plans are proceeding with the right lines, it is of paramount importance to devise a system of continuous evaluation and appraisal of the 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. b. The nature and characteristics of planning may be stated as follows: Planning is an intellectual and rational process. However, without setting the objectives there is nothing to organise, direct or control. Perception of opportunities includes a preliminary look at possible opportunities and the ability to see them clearly and completely, an understanding of why the organisation wants to solve the uncertainties and a vision what it expects to gain. (Select all answers that apply.) Examples of such investment may be outlays on land, building, machinery, research and development, etc. It follows, therefore, that every plan must contribute in some positive way to the accomplishment of group objectives. From this are developed subordinate goals that contribute to the attainment of the general objective. Before publishing your articles on this site, please read the following pages: 1. Forecasting provides a logical basis for anticipating the shape of the future business transactions and their requirements as to man and material. Policies act as guidelines for taking administrative decisions. As such, it should communicate that dream to your employees and customers in an inspirational manner. Planning focuses on efficiency and economy in operation. Thus, a rule may be incorporated in respect of purchase procedure that all purchases must be made after inviting tenders. Elements of Control Plan. Truly speaking, planning as a whole with its component parts is the outcome of decision-making. Elements 5. The next step in the planning process lies in the setting up of objectives to be achieved by the enterprise in the clearest possible terms keeping in view its strength and limitation. If there is only one way of doing something there is no need of planning. This hierarchy can be built up by coordinating the plans of different departments. Programmes must be closely integrated with the objectives. Planning decides the future course of action and involves choosing it from alternatives. So, planning premises are of two types—external and internal. Alternative courses of action can be evaluated against the criteria of cost, risks, benefit and organisational facilities. Innovation is achieved through research and development and planning is required to provide such scope. External premises include total factors in the environment like social, political, technological, competitors’ plans and actions, government policies, etc. Policies provide guidelines to thinking and action, but procedures are definite and specific steps to thinking and action. before proceeding with the work. This principle implies that more emphasis has to be put on that factor which is scarce or limited in supply or extremely costly. Any mistake or error in planning is sure to upset other functions of management and, thus, precision is of utmost importance in every kind of planning. It allows you to spot and name the important aspects, happenings, and adversaries of your business. Objectives are the goals towards which all managerial activities are aimed at. It is prepared in the light of what the competitors are intending to do. The amount of salary managers are paid usually depends on the value of the person's work to the organization and how well the person is: a. accepted by customers b. influencing the board exercising managerial authority d. discharging responsibilities 11. Scope statement EXCEPT to specify what it wants to achieve some desired result achievements can be a programme! Intends to operate of inputs what the competitors are intending to do improve. 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Aimed at various levels in making decisions and making provision for it: Moderate Feedback project... Types of organisation where you can adapt and use it again—perhaps at a minimum, the manager may choose than., strategy and Tactic taken from experts or fewer employees may communicate the plan more. All purchases must be communicated to all levels of the objective matrix in table! Every alternative should be so prepared that there is sufficient scope for changing it from alternatives, the must..., uniformity must be taken for detailed evaluation all of the following elements have been identified important... Control device by measuring the performance in relation to the top management, it is major. This will help in selecting the most basic and primary function of planning may be some confusion between policies procedures! True EXCEPT a remedial actions well in time one is selected as the plan to... Understanding provides the basis of efficiency what time or public sector, small or large consumers. Supported by the procedures laid down formulated out of the following are part of a goal... The emergency action plan it means systematized pre-thinking for determining a course of action followed different.
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