NATURE, IMPORTANCE AND PURPOSE OF PLANNING process
AJAY SIMHA K.J. 1AP07EC005
INTRODUCTIO N Definition of planning Considered as the most basic and parent exercise It answers all basic questions
Nature of planning Planning is goal oriented Continuous and ongoing process (ex: movement of a ship)
It is a pervasive function- It is done by managers at all levels Flexible in nature. (ex: colour television)
Contd…. Intellectual process- involves choice and decision making It is an integrating processimproper planning results in random activity
Schematic Representation Continuous And Ongoing Pervasive Function
Goal Oriented NATURE OF PLANNING
Intellectual Process
Integrating Process Flexible
Importance and purpose
Minimizes uncertainty and riskhelps in decision making (ex: refrigerator) Gives a clear view of the futureforecasting Leads to effective use of resources and economic operation Effective control-planning and control are inseparable and interdependent
Contd…. Helps to search from various alternatives (ex: selection from various models) Helps to identify potential opportunities and threats (ex: increase production when there is demand)
Leads to development of business strategies and budget planning
Contd… Planning is useful for teamwork Sense of direction and purpose Conveying information Building trust Dividing responsibility Simplifying goals is possible through planning
Schematic Representation IMPORTANCE AND PURPOSE OF PLANNING Minimizes risk Effective control Forecasting Economic operation Choosing from alternatives Identification of opportunities Team work Development of business strategies Simplifying goals
LIMITATIONS OF PLANNING Lack of reliable data-reliable information is not available Lack of initiative-manager fails to take initiative Costly process-time consuming and expensive process Rigidity in organizational working
Contd…. Non-acceptability of change-a commonly experienced phenomenon External limitations-very difficult to predict Psychological barriers
SUMMARY A good plan must beSpecific and simple Logical Complete and integrated Feasible Flexible-capable of being controlled
“Planning is deciding in advance what is to be done in future.” ~Koontz. “Plans are only good intentions unless they immediately degenerate into hard work.” ~Peter Drucker
“Thinking is the hardest work there is, which is probably the reason why so few engage in it...” ~Henry Ford.
"Planning is a trap laid down to capture the future." ~Allen
“Even if you're on the right track, you'll get run over if you just sit there.” ~Will Rogers.
“Planning
without action is futile, action without planning is fatal.” ~Unknown.
“It's not the plan that is important, it's the planning.” ~Dr Graeme Edwards.