NATURE, IMPORTANCE NATURE, IMPORTANCE AND PURPOSE OF AND PURPOSE OF PLANNING processPLANNING process

AJAY SIMHA K.J.1AP07EC005

INTRODUCTIONDefinition of planning

Considered as the most basic and parent exercise

It answers all basic questions

Nature of planning

Planning is goal orientedContinuous and ongoing process

(ex: movement of a ship)

It is a pervasive function- It is done by managers at all levels

Flexible in nature. (ex: colour television)

Contd….

Intellectual process- involves choice and decision making

It is an integrating process-improper planning results in random activity

Schematic Representation

GoalOriented

Integrating Process

Flexible

IntellectualProcess

PervasiveFunction

ContinuousAnd

Ongoing

NATUREOF

PLANNING

Importance and purpose

Minimizes uncertainty and risk-helps in decision making (ex: refrigerator)

Gives a clear view of the future-forecasting

Leads to effective use of resources and economic operation

Effective control-planning and control are inseparable and interdependent

Helps to search from various alternatives (ex: selection from various models)

Helps to identify potential opportunities and threats (ex: increase production when there is demand)

Leads to development of business strategies and budget planning

Contd….

Planning is useful for teamworkSense of direction and purposeConveying informationBuilding trustDividing responsibility Simplifying goals is possible

through planning

Contd…

IMPORTANCE AND PURPOSE OF PLANNING

Minimizes risk

Effective control

Forecasting

Economic operation

Choosing from alternatives

Identification of opportunities

Team work

Development of business strategies

Simplifying goals

Schematic Representation

LIMITATIONS OF PLANNING

Lack of reliable data-reliable information is not available

Lack of initiative-manager fails to take initiative

Costly process-time consuming and expensive process

Rigidity in organizational working

Non-acceptability of change-a commonly experienced phenomenon

External limitations-very difficult to predict

Psychological barriers

Contd….

SUMMARYA good plan must be-Specific and simpleLogicalComplete and integratedFeasibleFlexible-capable of being

controlled

“Planning is deciding in advance what is to be done in future.” ~Koontz.

“Plans are only good intentions unless they immediately degenerate into hard work.” ~Peter Drucker

“Thinking is the hardest work there is, which is probably the reason why so few engage in it...” ~Henry Ford.

"Planning is a trap laid down to capture the future." ~Allen

“Even if you're on the right track, you'll get run over if you just sit there.” ~Will Rogers.

“Planning without action is futile, action without planning is fatal.” ~Unknown.

“It's not the plan that is important, it's the planning.” ~Dr Graeme Edwards.