7 types of Essential Steps in Planning
Essential Steps in Planning; Planning is a process which embraces a number of steps to be taken. It is an intellectual exercise and a conscious determination of courses of action. Therefore, it requires serious thought on numerous factors necessary to be considered in making plans. Facts are collected and analyzed and the best out of all is chosen and adopted. Essential steps in planning Hindi Management.
The planning process, valid for one organization and for one plan, may not be valid for all other organizations or all types of plans, because various factors that go into planning process may differ from organization to organization or plan to plan. For example, the planning process for a large organization may not be the same as for a small organization.
The steps generally involved in the planning are as follows :
The first step in planning is to determine the enterprise objectives. These are most often set by upper level or top managers, usually, after a number of possible objectives have been carefully considered.
There are many types of objectives managers may select a desired sales volume or growth rate, the development of a new product or service, or even a more abstract goal such as becoming more active in the community.
The type of goal selected will depend on a number of factors: the basic mission of the organization, the values its managers hold, and the actual and potential ability of the organization.
The second step in planning is to establish planning premises, i.e. certain assumptions about the future on the basis of which the plan will be intimately formulated.
Planning premises are vital to the success of planning as they supply economic conditions, production costs and prices, probable competitive behavior, capital and material availability, governmental control and so on.
Once upper-level managers have selected the basic long-term goals and the planning premises, the next task is to decide the period of the plan. Business varies considerably in their planning periods. In some instances, plans are made for a year only while in others they span decades. In each case, however, there is always some logic in selecting a particular time range for planning. Companies generally base their period on a future that can reasonably be anticipated.
The fourth step is planning is to search for and examining alternative courses of action. For instance, technical know-how may be secured by engaging a foreign technician or by training staff abroad.
Similarly, products may be sold directly to the consumer by the company's salesmen or through exclusive agencies. There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best.
Having sought alternative courses, the fifth step is to evaluate them in the light of the premises and goals and to select the best course or courses of action. This is done with the help of quantitative techniques and operations research.
Once the plan has been formulated, its broad goals must be translated into day-to-day operations of the organization. Middle and lower-level managers must draw up the appropriate plans, programs, and budgets for their sub-units. These are described as derivative plans.
In developing these derivative plans, lower-level managers take steps similar to those taken by upper-level managers – selecting realistic goals, assessing their sub-units particular strength and weaknesses and analyzing those parts of the environment that can affect them.
Obviously, it is foolish to let a plan run its course without monitoring its progress. Hence the process of control is a critical part of any plan.
Managers need to check the progress of their plans so that they can;
What are the Essential Steps in Planning?
The planning process, valid for one organization and for one plan, may not be valid for all other organizations or all types of plans, because various factors that go into planning process may differ from organization to organization or plan to plan. For example, the planning process for a large organization may not be the same as for a small organization.
The steps generally involved in the planning are as follows :
Establishing Verifiable Goals or Set of Goals to be Achieved:
The first step in planning is to determine the enterprise objectives. These are most often set by upper level or top managers, usually, after a number of possible objectives have been carefully considered.
There are many types of objectives managers may select a desired sales volume or growth rate, the development of a new product or service, or even a more abstract goal such as becoming more active in the community.
The type of goal selected will depend on a number of factors: the basic mission of the organization, the values its managers hold, and the actual and potential ability of the organization.
Establishing Planning Premises:
The second step in planning is to establish planning premises, i.e. certain assumptions about the future on the basis of which the plan will be intimately formulated.
Planning premises are vital to the success of planning as they supply economic conditions, production costs and prices, probable competitive behavior, capital and material availability, governmental control and so on.
Deciding the planning period:
Once upper-level managers have selected the basic long-term goals and the planning premises, the next task is to decide the period of the plan. Business varies considerably in their planning periods. In some instances, plans are made for a year only while in others they span decades. In each case, however, there is always some logic in selecting a particular time range for planning. Companies generally base their period on a future that can reasonably be anticipated.
Other factors which influence the choice of a period are as follows:
- lead time in the development and commercialization of a new product.
- the time required to recover capital investments or the payback period, and.
- length of commitments already made.
Findings Alternative Courses of Action:
The fourth step is planning is to search for and examining alternative courses of action. For instance, technical know-how may be secured by engaging a foreign technician or by training staff abroad.
Similarly, products may be sold directly to the consumer by the company's salesmen or through exclusive agencies. There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best.
Evaluating and Selecting a Course of Action:
Having sought alternative courses, the fifth step is to evaluate them in the light of the premises and goals and to select the best course or courses of action. This is done with the help of quantitative techniques and operations research.
Developing Derivative plans:
Once the plan has been formulated, its broad goals must be translated into day-to-day operations of the organization. Middle and lower-level managers must draw up the appropriate plans, programs, and budgets for their sub-units. These are described as derivative plans.
In developing these derivative plans, lower-level managers take steps similar to those taken by upper-level managers – selecting realistic goals, assessing their sub-units particular strength and weaknesses and analyzing those parts of the environment that can affect them.
Measuring and Controlling the Progress:
Obviously, it is foolish to let a plan run its course without monitoring its progress. Hence the process of control is a critical part of any plan.
Managers need to check the progress of their plans so that they can;
- Take whatever remedial action is necessary to make the plan work, or.
- Change the original plan if it is unrealistic.
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