Learning to plan

2. Planning is deciding in advance What to
do , how to do it, when to do it, and who is
to do it.”

4. Planning Focuses on Achieving Objectives:
Management begins with planning and planning begins
with the determining of objectives.
For example, a company decides to achieve annual
sales of? 12 crores. After deciding upon this
objective, planning to achieve this objective shall
immediately come into force. It was thought to
achieve this objective by giving advertisement in the
newspapers.
After some time it comes to be known that the
medium of advertisement appeared to be incapable
of achieving the target. In such a situation the
medium of advertisement can be changed and it can
be shifted from newspapers to television in this way,
every possible change is made through the planned
action for the purpose of achieving the objective.

5. Planning is Primary Function of Management:
Planning is the first important function of management. In the
absence of planning no other function of management can be
performed. This is the base of other functions of management.
For example, a company plans to achieve a sales
target of 112 crores a year. In order to achieve this
target the second function of management, i.e.,
organizing comes into operation.
Under it the purchase, sales, production and financial
activities are decided upon. In order to complete
these activities, different departments and positions
are decided upon. The authority and responsibility of
every position are decided upon. After the work of
organizing, information about the number of
different people at different levels required to achieve
the objective shall have to be provided. This job will
be performed under staffing. Similarly, planning is

6. Since the job of planning is performed by the
managers at different levels working in the
enterprise, it is appropriate to call it all-pervasive.
The time spent by the higher-level managers in the process of planning is
comparatively more than the time spent by the middle-level and lower-level
managers. It is, therefore, clear that all the managers working in an
enterprise have to plan their activities.
For example, the decision
to expand business is taken by
the higher-level managers. The
decision to sell products is
taken by the middle-level and
lower-level managers.

7. Planning is Continuous:
Planning is a continuous process because:
(a) Plans are prepared for a particular period. Hence, there is
is need for a new plan after the expiry of that period.
(b) In case of any discrepancy plans are to be revised.
(c) In case of rapid changes in the business environment plans
environment plans are to be revised.
Planning is Futuristic:
Planning decides the plan of action what is to be done, how is it to be
done, when it to be done, by whom is it to be done all these questions
are related to future. Under planning, answers to these questions are
found out.
Since planning is concerned with future activities, it is called
futuristic.
For example, a company is planning to market a new product. While
doing so it shall have to keep in mind the customs and the
interests/tastes of the people and also the possibility of any change
in them.

9. 1. Awareness of opportunities
and problems:
The first step in planning process is the
awareness of business opportunity or
the problems to provide for in future.
Present and future opportunities must
be found out so that planning may be
undertaken to take advantage of them.
2. Collecting and
analyzing information:
The next step is to gather adequate
information and data relating to the
planning to be made. The facts and
figures collected will help in framing
realistic plans. Further, the information
gathered has to be analyzed for proper
interpretation.

10. 3. Establishment of clear-cut
objectives:
After collecting and analyzing
information, the management
should lay down in clear-cut
terms, the objectives of the
enterprise as a whole as well as
objectives of every section of the
enterprise.
4. Determining planning premises
and constraints:
Planning is always based on certain
assumptions regarding the future which
are known as planning premises. Thus
it is a forecast of conditions like trends
in population, political and economic
environment, production costs,
advertisement policy, availability of
labor, material, power, etc. Further
there will be constraints like
Government control which affect the
plans. Plans should be formulated by
the management in the backdrop of
such premises and constraints.

11. 5. Finding out the alternative courses
of action
Generally, in every situation there is more
than one possible course of action. As such,
in the light of the analysis of the
information gathered, the possible
alternative course of action should be
ascertained.
6. Evaluation of alternatives and
selection
The next step is to evaluate all possible
alternatives with reference to cost, speed,
quality, etc., and selecting best course of
action.

12. 7. Determining secondary plans:
After selecting the best course of
action, the management has to
formulate the secondary plans to
support the basic plan. For
example, after developing the basic
production plan, a number of
secondary plans for the purchasing
of raw materials, acquisition of
plant and machinery, training of
workers, arranging for adequate
finance etc. have to be prepared for
the successful operation of the basic
plan
8. Providing for follow-up and
future evaluation:
In order to see that the plans are
proceeding along the right lines,
it is necessary for the
management to device a system
for continuous evaluation and
appraisal of the plan.

13. ALL THE BEST…KEEP PLANNING