2. DEFINITION
Planning is the fundamental aspect of management. It
is basically a mental & intellectual process. Planning is
deciding well in advance what is to be done, how it is to
be done, when it is to be done ,where it is to be done,
who is to do it and how much to do.
3. SOME IMPORTANT DEFINITION OF PLANNING.
1. “PLANNING IS DECIDING IN ADVANCED WHAT IS TO BE
DONE.” – Theo Haimann
2. “PLANNING is deciding in advance what to do, how to do it,
when to do it and who is to do it.” – Koontz & o’Donnell
3. “PLANNING IS the Determination of a course of action to
achieve a desired result.” – Louis A. Allen
4. PLANNING
• It is the most fundamental function of
management.
• It is the process of thinking before doing.
• It is the basic process of setting up goals to
be reached and course of action to be
followed.
• It bridges the gap from where we are to
where we want to go.
5. NATURE OF PLANNING
• Futuristic in nature : In planning, decision are
taken in advance what is to done in future.
• Planning is purposeful : it is goal oriented. It is
directed towards efficiency.
• Pervasive in nature : Many people believe in
planning. It is the job of all the managers in all
types of organizations.
6. • A mental and intellectual process : A mental process
involving imagination, foresight and sound adjustment.
• A Continuous process : Planning is not one time task.
Continued checking of events are core of planning.
• A selective process : Choosing between alternatives is
regarded as an integral part of planning.
• A primary managerial function : planning is a primary
function of management. All other functions are
performed on the basis of planning.
NATURE OF PLANNING
7. NATURE OF PLANNING
• Contribution to objectives : Planning works for achieving
predetermined objectives. The purpose of every plan is to
facilitate the accomplishment of enterprise objectives.
• Efficiency of planning: The success of planning hinges on
the efficiency of planning. It is expressed in terms of the
ratio of the input to output. It is measured both in
quantitative and qualitative terms.
• A tool of control : Planning is not only beginning of
management, but it is also the end of it. Planning furnishes
the standards of control. Any attempt to control without
plans would be meaningless.
9. PURPOSE OF PLANNING
1. Increases efficiency
2. Reduces business-related risks
3. Facilitates proper coordination
4. Aids in Organizing
5. Gives right direction
6. Keeps good control
7. Helps to achieve objectives
8. Motivates personnel
9. Encourages creativity and innovation
10.Helps in decision-making
10. PURPOSE OF PLANNING
• Increases efficiency : Planning makes optimum utilization of
all available resources. It helps to reduce wastage of valuable
resources and avoids their duplication. It aims to give the highest
returns at the lowest possible cost. It thus increases the overall
efficiency.
• Reduces business-related risks: Planning helps to forecast
these business-related risks. It also helps to take the necessary
precautions to avoid these risks and prepare for future
uncertainties in advance.
•Facilitates proper coordination: The plans of all departments
of an organization are well coordinated with each other
. proper coordination is possible only because of efficient
planning.
11. PURPOSE OF PLANNING
• Aids in Organizing: Organizing means to bring together all
available resources. planning tells us the amount of
resources required and when are they needed . It means
that planning aids in organizing in an efficient way.
• Gives right direction: Direction means to give proper
information, accurate instructions and useful guidance to
the subordinates. It is impossible without planning. It is
because planning tells us what to do, how to do it and when
to do it. Therefore, planning helps to give a right direction.
• Keeps good control: With control, the actual performance
of an employee is compared with the plans, and deviations
are found out and corrected. It is impossible to achieve
such a control without right planning.
12. PURPOSE OF PLANNING
• Helps to achieve objectives: Every organization has certain
objectives or targets. It keeps working hard to fulfill these goals.
Planning helps an organization to achieve these aims.
• Motivates personnel: A good plan provides various financial
and non-financial incentives to both managers and employees.
These incentives motivate them to work hard and achieve the
objectives of the organization. Thus, planning through various
incentives helps to motivate the personnel of an organization.
• Encourages creativity and innovation: Planning helps
managers to express their creativity and innovation. It brings
satisfaction to the managers and eventually success to the
organization.
13. PURPOSE OF PLANNING
• Helps in decision-making : A manager makes many different
plans. Then the manager selects or chooses the best of all
available strategies. Making a selection or choosing something
means to take a decision. So, decision-making is facilitated by
planning.
