What is planning? – planning is the fundamental management function of deciding beforehand what to do, when to do, how will it be done and who would be responsible for it. Planning process includes setting objectives and then deciding the best suited course of action to achieve the previously set objectives. It acts as a roadmap for an organization’s future, bridging the gap between its present and future. Planning is a systematic and structured way to achieve the desired goals and aims that the organisation is currently working on or wishes to work on. Planning is the process of thinking regarding the steps required to achieve a desired goal.
The Planning Process
The planning process is a systematic approach to decision-making that typically involves several important steps. By following these steps, plans turn out to be realistic and well thought and effective.
- Setting Objectives – this is the foremost step in planning process. It defines your goals clearly and pushes forward an organization in achieving the desired goals. Objectives should be S.M.A.R.T i.e. Specific, Measureable, Achievable, Relevant and Time-bound. They serve as the foundation for all the upcoming planning activities.
- Planning Premises – developing planning premises is the second step in planning process. Planning premises are basically the assumptions that the future plans will operate on. These premises can be laid due to internal causes like change in company policies or external causes like change in government policies. Planning based on these causes is crucial because it helps create a realistic framework.
- Finding Alternatives – once the primary objective is set and plans are framed on the premises, the next step is to brainstorm different alternatives which can be used to achieve the desired goals and aims. This step needs creativity in order to think outside the box. It is beneficial to identify as many viable options as possible before moving on to the evaluation.
- Evaluation – the alternative steps should be evaluated against the set objectives and premises to know the pros and cons of each option, while taking in consideration factors like costs, risks and benefits. Evaluation also involves quantitative techniques like cost-benefit analysis and qualitative factors like company culture. After a thorough evaluation, the most suitable option is chosen.
- Implementation of the plan – this is the action phase. The plan is put into action and all the necessary resources are allocated. To ensure effective implementation, clear communication and leadership is important to motivate the employees. The next step is to monitor the progress of the plan and make the necessary changes, where needed. This step involves comparing the actual performance to the planned objectives and taking corrective actions, where needed.
Types of Planning
There are four major types of planning in management which are typically categorized by their scope, timeframe and level of management.
- Strategic Planning – this planning involves an organisation’s long term goals, goals and missions, and then formulating broad strategies to achieve them. To carry out this type of planning. Top level managers are required and it has a long term focus, maybe for 3 to 5 years. It involves fundamental questions like “What we want to become?” Strategic are a high level blueprint for an organization and guide their all planning actions.
- Tactical Planning – it involves tactics and specific plans for individual departments. Middle management is responsible for this planning. Tactical planning focus on “how” and “when” of a strategy, noting the specific actions and resources required achieving the desired goal.
- Operational Planning – it is the most specific and short term planning. It is the responsibility of the frontline managers and it focuses on daily activities and procedures necessary to achieve the tactical plans. Operational planning includes daily promotion schedules, employee assignment and management. These plans ensure that the organisation’s daily tasks are done smoothly and effectively.
- Contingency Planning - this planning involves “Plan B’s”; it includes the process of identifying alternatives which can be used if the original plan fails. It is an approach to risk management that helps an organization in maintaining operations and recover quickly from unexpected events like major market shift, etc. These plans are essential for ensuring continuity and consistency in a business.
Importance of Planning
Planning provides a framework for the future, without it an organization lacks direction, purpose and way to success. Planning helps in establishing clear and specific objectives for an entire organization. Planning provides a sense of purpose and a common direction to work forward by defining what needs to be done and how it should be done. This lowers the chances of confusion and makes sure that all efforts are aligned. The business world is full of uncertainty. Planning involves foreseeing future plans and making assumptions about the potential risks. Although it cannot eliminate all the risks, it allows managers to plan in advance to mitigate any future problem’s effect. Planning also encourages managers to think systematically and logically. The disciplined approach leads to calculated and rational choices, reducing the possibility of impulsive decisions.
FAQs
Q1. What is the meaning of planning in management?
Ans. Planning is the fundamental management function of deciding beforehand what to do, when to do, how will it be done and who would be responsible for it.
Q2. What are principles of planning?
Ans. Primary principles of planning are flexibility, planning premises, risks management, efficient practices, etc.
Q3. What are the types of planning in management?
Ans. The four major types of planning are strategic, tactical, operational and contingency planning.
Q4. What are some features of planning?
Ans. Major Features of planning are goal orientation, future orientation and pervasive nature.
Q5. What are some limitations of planning?
Ans. Some limitations include rigidity, no guarantee of success, false sense of security and is time consuming.
