Nature and purpose of planning

After deciding upon this objective, planning to achieve this objective shall immediately come into force. To estimate the competitor's plans, a manager has to put himself in his competitor's place and develop a set of plans for his competitor, using the knowledge has regarding the objectives and the circumstances in which the competitor is operating.

It may also be treated as a process of thinking before doing.

What is Planning and its Nature, Importance, and Types

A plan may enhance the attainment of an objective, say in can get more sales but at an unnecessarily high cost.

They have to deliver the required output. Types of Plans Objectives are the ends toward which the activity of an organization is aimed.

Management is basically multidisciplinary. Some managers at higher levels may be more involved in policy making and some other managers are more involved in taking decisions based on the policy.

Essential nature of planning can be described by four major aspects: Action statements represent the means by which an organization goes ahead to attain its goals.

There are many types of the plan; Hierarchical Plans: It also helps the management in adopting and adjusting according to the changes that take place in the environment.

But policy making and administering policies can be differentiated. Sometimes the end can be qualitative also. Decisions can be made without planning but planning cannot be done without making decisions. According to Alford and Beatt, "Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action.

7 Main Nature and Features of Planning in Business

Similarly, planning is the base of other functions like directing and controlling. Also, all the other managerial functions must be planned if they are to be effective. Grand strategies According to R. How to achieve growth is a problem which has a positive implication only. The other functions come after planning.

Meeting the Challenge of Resource Scarcity Resource scarcity is a very important consideration for any organization today. It is thus clear that planning is helpful in the attainment of objectives.

When a manager plans, he projects a course of action for further attempting to achieve a consistent co-ordinate structure of operations aimed at the desired results.

What is Planning and its Nature, Importance, and Types

The basic principles of management can be applied any where whether they are business or non-business organization. For example, the decision to expand business is taken by the higher-level managers.

They specify a chronological sequence of required actions. It is a statement of expected results expressed in numerical terms. Some major examples being: In the absence of planning no other function of management can be performed. Planning becomes a necessity when there are many alternatives to do a job.

The decision to sell products is taken by the middle-level and lower-level managers. United States has a statement of nation purpose set forth in the Declaration of Independence. Every major plan and its supporting plans should contribute to the accomplishment of the purpose and objectives of the enterprise.

Planners in both private business and public agencies are challenged to stretch their limited resources through intelligent planning.

Values represent stable long lasting belief about what is important. The planning done by managers is aimed at achieving the organizational goals. CEOs may spend more time planning and organizing and departmental heads may be there to take care of resource acquisition, leading people in their departments and controlling the department performance.

A planner chooses the most appropriate alternative. Its contribution to objectives. For example, if a country has the objective of switching to unconventional sources of energy, the goals could specified as so many gigawatts of energy by end of year While an effort is made to find out these answers, the possibility of social, economic, technical and changes in legal framework are kept in mind.

The plans are made either with an estimate of plans or competitor or plan is a reaction to the strategic move of competitor either announced or executed. Objectives have to planned. Planning is a deliberate and conscious act by means of which managers determine a course of action for pursuing a specific goal.

Unit 2 Planning Nature and Purpose – Steps Involved In - Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free.

Scribd is the /5(11). Nature, Importance and Purpose of Planning Process - Free download as Powerpoint Presentation .ppt), PDF File .pdf), Text File .txt) or view presentation slides online.5/5(12). Dec 01,  · The Nature and Purpose of Planning - Review Notes The Nature and Purpose of Planning Every manager has to select objectives for his enterprise, department, section, unit or group.

“Planning refers to the practice and the profession associated with the idea of planning (land use planning, urban planning or spatial planning).

In many countries, the operation of a town and country planning system is often referred to as “planning” and the professionals which operate the system are known as “planners”. the nature and purpose of planning. PLANNING is a process for accomplishing purpose.

* It is a blue print of business growth and a road map of development. * the conscious, systematic process of making decisions about goals and activities to. Nature and purpose of planning According to Koontz O'Donnel - "Planning is an intellectual process, the conscious determination of courses of action, the basing of decisions on purpose.

Nature and purpose of planning
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7 Main Nature and Features of Planning in Business