Planning
Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an organization’s objectives and develops various courses of action, by which the organization can achieve those objectives. It chalks out exactly, how to attain a specific goal.
Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making.
Characteristics of Planning
Importance of Planning
It helps managers to improve future performance, by
establishing objectives and selecting a course of action, for the benefit of the organization.
It minimizes risk and uncertainty, by looking ahead into the future.
It facilitates the coordination of activities. Thus, reduces overlapping among activities and eliminates unproductive work.
It states in advance, what should be done in future, so it provides direction for action.
It uncovers and identifies future opportunities and threats.
It sets out standards for controlling. It compares actual performance with the standard performance and efforts are made to correct the same.
Steps involved in Planning
Kinds of Plans
Strategic Plans
– A general plan outlining resource allocation,
priorities, and action steps to achieve strategic goals.
The plans are set by and for top management.
Tactical Plans
– A plan aimed at achieving the tactical goals set by
and for middle management.
Kinds of Plans
Operational Plans
– Plans that have a short-term focus.
These plans are set by and for lower-level managers.
Contingency Planning
Contingency plans are made when something
unexpected happens or when something needs to be
changed. Business experts sometimes refer to these
plans as a special type of planning.
Purposes of Goals
– Provide guidance and a unified direction for people in the organization.
– Have a strong affect on the quality of other aspects of planning.
– Serve as a source of motivation for employees of the organization.
– Provide an effective mechanism for evaluation and control of the organization.
Kinds of Goals
•By Level
– Mission statement is a statement of an organization’s fundamental purpose.
– Strategic goals are goals set by and for top management of the organization that address broad, general issues.
– Tactical goals are set by and for middle managers; their focus is on how to operationalize actions to strategic goals.
– Operational goals are set by and for lower-level managers to address issues associated with tactical goals.
Maslow Hierarchy of Needs
Maslow Hierarchy of Needs
1. Physiological Needs: Food, Water, Warmth, shelter and sleep.
2. Security or safety Needs: Free of physical danger and fear of losing job, property, food or shelter.
3. Acceptance Needs: Need to belong, to be accepted by others.
4. Esteem Needs: Power, prestige, self-confidence.
5. Need for self-actualization: It is the desire to become what one is capable of becoming-to maximize one’s potential and to accomplish.
