Planning Process

Definition of Planning TERRY has defined “Planning is the selection and relating of facts and making and using of assumptions regarding future in the visualization and formulation of proposed activity believed necessary to achieve desired results.”

Process of Planning 1.Perception of opportunities 2.Establishing objectives 3.Planning premises 4.Identification of alternatives 5.Evaluation of alternatives 6.Choice of alternative plans 7.Formulation of supporting plans 8.Establishing sequence of activities

Perception of opportunities

Establishing objective

Planning premises

Choice of alternative plans Evaluation of alternatives Identification of alternatives

ormulation of supportingEstablishing plans sequence of activities

The explanation of the following points are as follow : 1. Perception of Opportunities : It includes a preliminary look at possible opportunities and the ability to see them clearly and completely, a knowledge of where the organization stands in the light of its strengths and weaknesses, an understanding of why the organization wants to solve uncertainties, and a vision of what it expects to gain. 2. Establishing Objective: The objective should be specified before starting the business, its should be a clear idea what’s we are going to achieve in a future.

3. Planning premises: It mean a planning assumptions, the expected environment and internal conditions. Thus, planning premises are external and internal. In externalits include political, social, technological, competitors’ plans and actions, govt. policies etc. internal factors includes organization's policies , resources of various types, etc 4. Identification of Alternatives: There are various alternative you have to identify the alternative which meet the requirement of your objective.

5. Evaluation of Alternatives: After the identification of the various alternative you have to evaluate how each alternative contributes to the organisational objectives in the light of its resources and constraints, because every alternative have certain positive and certain negative points. 6. Choice of Alternative: After evaluation of various alternatives, which alternative most fit with the organisational objective. Some time evaluation shows more than one alternative is equally good. In that case they choose more than one alternative because future is uncertain, therefore planner is ready with the another alternative.

7. Formulation of Supporting Plans: After formulating the basic plan, various plans are derived so as to support the main plan. In an organisation there can be various derivative plans like planning for buying equipments, buying raw materials, recruiting and training personnel, developing new product, etc. 8. Establishing sequence of Activities: After formulating basic and derivative plans, the sequence of activities is determined so that plans are put into action. Based on plans at various levels, it can be decided who will do what and at what time. Budgets for various periods can be prepared.