1. What do you mean by Planning ? What are the features of planning ?
Ans - Planning can be defined as " Thinking in advance , what do to , when to do , and who will do the task . In simple words we can say , planning bridges the gap between where we are standing today and where we want to reach .
Another important ingredient of planning is time . Plans are always developed for a fixed time period as no business can go on planning endlessly .
Features - 1. Planning contributes to objectives - Planning starts with the determination of objectives . We cannot think of planning in absence of objective . After setting up the objectives , planning decides the methods , procedures and steps to be taken for achievement of set objectives .
2. Planning is primary function of management - Planning is the primary or first function to be performed by every manager . No other function can be executed by the manager without performing planning function because objectives are set up in planning and other functions depend on the objectives only .
3. Pervasive - Planning is required at all levels of the management and in all types of organisations . It is not a function restricted to top level managers only but planning is done by managers at every level .
4. Planning is futuristic - Planning always means looking ahead or planning is a futuristic function . Planning is never done for the past . All the managers try to make predictions and assumptions for future and these predictions are made on the basis of past experiences of the manager and with the regular and intelligent scanning of the general environment .
5. Planning is continuous - Planning is a never - ending or continuous process because after making plans also one has to be in touch with the changes in changing environment and in the selection of one best way .
2. What are the importance of planning ?
Ans - 1. Better utilisation of resources - One of the advantages of planning is the better utilisation of resources of the business . All resources are put to best possible uses .
2. Minimising Uncertainties - Planning is always done for the future . Business environments are always changing . Planning certainly minimizes future uncertainties by focusing its decision on past experience and present situations .
3. Better coordination - Planning will lead to better coordination in the organisation which will ultimately lead to better results .
4. Attention on objectives- Planning helps in laying down objectives of the organisations . The whole situation of management is given towards the achievement of those objectives .
5. Encourages innovation and creativity - A better planning system should encourage managers to device new ways of doing the things .
3. What are the disadvantages or limitations of planning ?
Ans - 1. Lack of reliable data - The planning is based on various factors and figures . If the data on which decisions are based are not reliable , then decisions based on such involves lack of reliable data .
2. Expensive - The planning process in very expensive . The gathering of information and testing of various courses of action involves great amounts of money .
3. Sudden emergencies - Emergencies are anticipated or they have regularity in occurance , then advance plan should be undertaken for emergencies too .
4. Time consuming process - Planning is a time consuming process and actions on various operations may be delayed because proper planning has not yet being done .
5. External factors may reduce utility - The external factors - economic , social , political, technological or legal , too adversely affect planning .
4. What are the important steps in planning process ?
Ans - 1. Recognizing the need for action - The first step in planning process is the awarness of business opportunity and the need for taking actions . Present and future opportunity must be found as that planning may be undertaken for them .
2. Gathering necessary information - Before actual planning is initiated , all information relating to operations of the business should be collected in detail .
3. Laying down objectives- Objectives are the goals which the management tries to achieve . Planning starts with the determination of objectives .
4. Determining planning premises - Planning is always for uncertain future . Forecasts are essential for planning even if all mayn't prove correct . The behaviour of certain variables is forecasted for constituting planning premises .
5. Examining alternative courses of action - The next step in planning will be choosing the best course of action . Best results will be achieved only when the best way of doing a work is selected .
6. Evaluation of action patterns - After chasing a course of action , the next step will be to make an evolution of those course of actions. Best results will be achieved only when the best way of doing a work is selected .
7. Determining secondary plans - Once a main plan is formulated then a number of supportive plans are required . Infact , secondary plans are meant for the implementation of main plans .
8. Implementation of plans - The last step in planning process is the implementation part . The planning should be put into actions so that business objectives or goals may be achieved .
5. How to make planning effective ?
Ans - 1. Consciousness of planning - The last step of planning process is the implementation part . The planning should be put into actions so that business objectives or goals maybe achieved .
2. Initiative at top level - Since the objectives of the organisation are set at top level . Therefore the initiative of and support of top level management is essential for making the plans effective .
3. Proper Communication - Communication in different level is very essential . If plans are not properly understood by those who are to execute them . Then this may not achieve desired results.
4. Participation in planning - Planning process should involve persons from different levels . Management should try to elicit views of different persons while planning is undertaken .
5. Emphasis on long - term and short - term - It should get proper emphasis . Both the plan should be integrated for their proper implementation
6. What are the different types of plans ?
Ans - 1. Objectives - Objectives are the goal established to guide the efforts of the company and its various constituents . This are the standards of performance which are expected to be achieved. Objectives are pre- requisite for planning . No planning is possible without setting up of objectives .
2. Strategy- A strategy is a comprehensive plan to achieve organisational objectives . It is a decision to adopt particular quotes of action to reach the goals . The strategies are formulated only at the top level of management while lower levels of management are required to execute them .
3. Policies - Policies are the general statements which are formulated by an organisation for the guidance of its personnel . The objectives are first formulated and then policies are planned to achieve them .
4. Procedures - Procedures are required steps established in advance to handle future conditions . The sequence of steps to be followed by employees in different situations must be predetermined so that everyone follows same steps . The procedure can be defined as the exact manner in which an activity has to be accomplished .
5. Methods - The term methods refer to the manner of proceeding in the performance of the work . They are work plans giving details of the manner and sequence of performing the individual task . Whenever a particular method will be used to do it , the employees are clear about following a particular method for doing the work .
6. Rules - A rule is a plan that lays down a required course of action with regard to a situation . A rule is in the nature of a decision made my management with what is to be done and what not to be done .
7. Programmes - A program is a single used plan led down for new and now continuous activities . A program is a sequence of activities designed to implement policies and achieve objectives . It is deviced to met particular situations . Program is taken as a combination of policies , rules , procedures , etc developed to carry out a particular course of action .
8. Budget - A budget to the monetary and quantitative expression of business plans and policies to be persuade in future . Budgets are mostly financial in nature but their can be other budgets also . A cash budget will forecast the expected cash inflow and cash outflow in a specified period .
7. What do you mean by Standing plan and Single use plan ?
Ans - Standing plan - Standing plans are those kind of plans which are repetative in nature and these plans are used again and again . These plans are meant to achieve uniformity in action . The examples of these kind of plans are - policies , procedures , rules , methods .
Single use plan - Single use plans are those types of plans which are used for a particular purpose . It is meant to achieve a specific purpose . The examples of these kinds of plans are programmes , budget .
8. What do you mean by Planning Premises ?
Ans - Planning Premises means systematic and logical estimate for the future factors affecting planning .
According to Terry , " Planning premises are the assumptions providing a background against which the estimated events affecting the planning will take place ".
