UNIT -02
PLANNING
Meaning of Planning –
Deciding about all the aspect is called planning. A problem about taking decision on these matters rises
when there are more than one possible answers.. therefore it can be said to be a process of choosing .
Planning is the most basic of all managerial functions which involves establishing goals, setting out
objectives and defining the methods by which these goals and objectives are to be attained. It is, therefore,
a rational approach to achieving pre-selected objectives.
Definition of planning :
According to koontz and O’donnell,” Planning is deciding in advance What to do , how to do it, when to
do it, and who is to do it.”
Characteristics of planning
1. Planning focuses on achieving the objectives:
Management begins with planning and planning begins with the determining of objectives. In the
absence of objectives no organization can ever be thought about.
2. Planning is the primary function of Management:
Planning is the first important function of management. The other functions –organising, staffing,
directing and controlling come later. In the absence of planning no other function of management can
be performed.
3. Planning is continuous:
Planning is the process which begins with the beginning of business itself and ends with the ending of
the business. It means that as long a business exists, the planning process is continuous. For example ,
a company plans to sell one lakh units in the coming year. Suddenly, many competing companies enter
the market. This will naturally affect the previous position of the company and , therefore ,it shall have
to revise its planning.
4. Planning is Futuristic:
Planning decides the plan of action-What is to be done, how is to be done, when is to be done, by who
is to be done, all the questions are related to future. Under the planning, answer to these questiona is
found out. While an effort is made to find out these answer.
5. Planning is mental exercise:
Planning is known as a mental exercise as it is related to thinking before doing something. A planner
has mainly to think about the following questions:
(1) What to do? , (2) how to do it? , (3)When to do it? , (4) Who is to do it?
6. Flexibility:
Plans should not be made rigid. It should be as flexible as possible to accommodate all possible changes
in the enterprise with a view to coping with the changing conditions in the market. In fact, planning is
a dynamic activity
7. Simplicity:
The language of the work schedule or programme in the planning should be simple so that each and
every part of it may easily be understood by the employees at different levels, especially at the lower
level.
8. Precision:
Precision is the soul of planning. This gives the planning exact, definite, and accurate meaning in its
scope and content. 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.
9. Feasibility:
Planning is neither poetry nor philosophy. It is based on facts and experience, and thereby realistic in
nature. It represents a programme which is possible to execute with more or less existing resources.
10. Choice among Alternative Courses:
Planning involves selection of suitable course of action from several alternatives. If there is only one
way of doing something there is no need of planning. 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.
11. Efficiency:
Planning is directed towards efficiency. A plan is a course of action that shows promise of optimizing
return at the minimum expense of inputs. In planning, the manager evaluates the alternatives on the
basis of efficiency. A good plan should not only attain optimum relationship between output and input
but should also bring the greatest satisfaction to those who are responsible for its implementation.
