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Nature and Scope of Planning, with definition and their 5 key Points

A manager does not make plans about the past, but he is guided after the performance in the planning process, for this, it is necessary to present future activities in the organization. It is related to the future in which the forecast is included. Therefore, we can say that planning and decision are being taken to make plans in the future.

According to Terry, 

"Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieved desired results."

Nature and Scope of Planning.


The nature of planning can be understood by focusing on the following aspects:

Planning is a continuous process.


Planning with the future and the future, by its nature, is uncertain. Although the planner prepares its plans on an informed and intelligent guess of the future, future events cannot be predicted in advance. This aspect of planning makes it a continuous process.

Plans are a statement of future intentions related to objectives and means of their acquisition. They do not finally acquire because they need to amend their response in response to the changes in the internal as well as the external environment in the enterprise. Therefore, planning should be a continuous process and therefore no plan is final, it is always subject to an amendment.

The plan concerns all the managers.


It is the responsibility of each manager to set their goals and operational plans. In doing so, he makes his goals and plans within the scope of his best goals and plans. Thus, planning is not the responsibility of employees of the top management or planning department; All those who are responsible for the achievement of the results, have the responsibility of planning in the future.

However, at the higher level, the manager, being responsible for the relatively large unit of enterprise, dedicates a large part of his time to the planning, and the time duration of his plans will be longer than the managers at lower levels. is. This indicates that planning achieves maximum importance and goes to a higher level in the future than lower management levels.

The plans are arranged in a hierarchy.


Plans for the whole organization are called corporate plans first. Corporate Planning provides a framework for the construction of departmental and sectional goals. Each of these organizational components determines their plans while defining programs, projects, budgets, resource requirements, etc. The plans of each lower component are gradually combined into the plans of the higher component unless the corporate plans integrate all component plans in a holistic manner.

For example, in the production department, the superintendent of each store determines their plans, which gradually integrated as a normal foreman, the manager, and the production manager's plans work. All departmental plans are then integrated into the corporate plan. Thus, there is a hierarchy of schemes including corporate planning, departmental / department planning, sectional plan and unit plan of individual Mars.

The plan is committed to an organization in the future.


The plan creates an organization in the future because past, present, and future are bound in a series. The objectives, strategies, policies and operational plans of an organization will affect the effectiveness of its future, as the decisions and activities currently performed continue their influence in the future. Some plans affect the near future, while others affect it in the long run.

For example, plans for product diversification or production capacity will affect the company in the future for a long time, and are not easily reversible, while plans related to the layout of its office locations with relatively less difficulty in the future should be changed. Could. It focuses on the need for better and more careful planning.

The plan is contrary to the states.


Planning is done with a conscious purpose of achieving a position for that company which will not be otherwise completed. Therefore, the purpose of the plan is to reflect organizational objectives, policies, products, marketing strategies, and subsequent changes. However, unexpected environmental changes affect the plan itself. Therefore, it requires examination and re-examination, continuous reconsideration of the future, the continuous search of more effective methods and better results.

Planning is thus a ubiquitous, continuous and dynamic process. It gives all officers a responsibility to estimate and anticipate the future, preparing the organization to deal with its challenges, while availing the opportunities created by it, while at the same time, today's Pre-decision decisions affect the events of tomorrow and action.

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