PLANNING

 According to Peter Drucker:
Planning is continuous process of making present entrepreneurial decision (risk taking) systematically and with best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the result of these decisions against the expectation through an organized systematic feedback.

 According to Koontz o’ Donnell:
Planning is an intellectual process, the conscious determination of course of action, the basing of decisions on purpose, facts and considered estimates.

 According to David Ewing:
Planning is to a large extent the job of making things happen that would not otherwise occur.

Features of planning :
 Planning is an intellectual activity
 Planning is an primary function of management
 Planning involves futurism
 Planning involves decision – making
 Planning is goal – oriented process
 Planning is continuous process
 Plan is all Pervasive

Need for planning :
 The increasing time span between present decisions and future results.
 Increasing organizational complexity
 Increased external change
 Planning and other management functions

Importance of planning :
 Planning determines the future destination of an organization
 Planning makes activities of employees meaningful
 Planning economizes operations
 Planning helps in reducing the risk of uncertainties
 Planning leads to discovery of new ideas and opportunities
 Planning facilitates co-ordination

Types of plans :
 Purposes or missions
 Objectives or goals
 Strategies
 Policies
 Procedures
 Rules
 Programs
 Budgets

Steps in planning :
1. Being aware of opportunities
2. Setting objectives and goals
3. Considering planning premises
4.Identifying alternatives
5.Comparing alternatives in light goals of sought
6.Choosing an alternative
7.Formulating supporting plans
8.Number zing plans by making budgets

Advantages of planning :
 Competitive spirit
 Conducive to systematic and Methodical work
 Minimizes irrelevant wastes
 Better and more constructive use of facilities
 Provides an overall picture of the operation of an enterprise
 Ensures co – ordination

Limitations of planning :
 Limitation of information
 Time limit
 Administrative limitation
 Action delay limit
 Psychological barrier