The document outlines the steps in the planning process:
1. The process begins with classifying business problems and determining overall objectives to address the problems.
2. Planners then collect internal and external information and analyze the data.
3. Premises about the future business environment are established to reduce uncertainty.
4. Alternative plans are prepared to address different situations, and the best plan is selected for implementation.
5. The overall plan is broken down into derivative plans by department and activities are scheduled and coordinated.
6. Employees are involved in the process and the plan is followed up on and adjusted if needed based on progress.
2. Steps in
Planning Process
Planning is a lengthy process which moves gradually and step by
step approach is usually adopted. These steps are like stations in
the journey of planning process.
Classifying the problems: The planning process starts with clear
understanding and classifying business problems faced by a
business unit. Identification of problems or opportunities by
managers justifies the need for action. It is like the diagnosis of the
health problem of a patient by his doctor. Planners have to
understand the problems of the Organization first and, then,
prepare a plan to deal with the problems in the light of the
prevailing business environment.
3. Steps in
Planning Process
Determining the objectives: In this second stage in the planning
process, the planners decide the overall objectives to be achieved.
Planning is always for achieving certain well defined objectives and
naturally objectives must be spelt out precisely.
Objectives act as pillars of the entire planning process. Business
objectives may be decided in terms of profit, sales, production or
market reputation. Objectives may be defined in quantitative or
qualitative terms.
4. Steps in
Planning Process
Collecting complete information and data: The planners have to
collect information relating to problems facing the business unit.
Such information is necessary and useful for analyzing the
problems in depth and also for accuracy in planning.
Information can be collected from internal and external sources.
Reliable, updated and adequate data make planning process result-
oriented.
5. Steps in
Planning Process
Analyzing and classifying the information: At this stage, the
information collected is analyzed and interpreted systematically for
drawing specific conclusions. This facilitates purposeful use of
information, while preparing alternative plans.
Irrelevant information can be discarded through such analysis.
6. Steps in
Planning Process
Establishing planning premises: Planning premises are various
assumptions and predictions about the future business situation.
Such premises act as background for planning activities. The
planning premises are expected to supply relevant facts,
information and data on the basis of which forecasts are prepared
and future trends are indicated.
Planning premises reduce uncertainties in the planning process.
Planning premises are three in number viz., (a) Controllable
premises, (b) Semi-controllable premises, and (c) Uncontrollable
premises.
7. Steps in
Planning Process
Determining alternative plans: Here, the planners prepare and
keep ready alternative plans suitable for use under different
situations. The best among the available alternative plans is used
for actual execution.
The preparation of alternative plans is essential as one plan is
normally not adequate under all types of situations. It is a type of
stand-by arrangement useful for meeting any emergency situation.
8. Steps in
Planning Process
Selecting operating plan and preparing derivative plans: After study
of the business environment and the alternative plans available,
the planners select the best plan for actual execution. This decision
is a delicate one and must be made with proper care. After the
selection of operating plan, the planners have to prepare derivative
plans.
Such plans are related to different departments/activities and
constitute sub-sections of the operating plan. The division of
overall plan into derivative plans is necessary for effective
execution.
9. Steps in
Planning Process
Arranging timing and sequence of operations: Timing involves
fixation of starting and finishing time for each job or piece of work.
Sequence of operations ensures proper flow of work.
This step in planning process is important as it brings coordination
in the activities of different departments. The timings and
sequence of operations must be communicated to concerned
departments, managers and staff for implementation of the plan.
10. Steps in
Planning Process
Securing participation of employees: Planning needs willing
participation of all employees and departments. For this,
information regarding the operative plan should be given to
employees well in advance.
Here, the internal communication system should be used
extensively. For such participation, employees should be associated
with the planning process.
11. Steps in
Planning Process
Follow-up of the proposed plan: The purpose of follow-up is to
make periodical review of the execution process. It is useful for
understanding actual progress and deficiencies in the process of
execution of the plan.
This also facilitates adoption of suitable remedial measures as and
when required.