PLANNING

Planning can be defined as "thinking in advance what is to be done,

when it is to be done, how it is to be done and by whom it should be
done.

FEATURES OF PLANNING
1. Planning contributes to objectives: Planning starts with the objectives.
After setting up the objectives, planning decides the methods.
procedures and steps to be taken for achievement of set objectives.
2. Planning is primary function of management: Planning is the primary
or first function to be performed by every manager.
3. Pervasive: Planning is required at all levels of the management and in
all types of organisations.
4. Planning is futuristic/forward looking. Planning always means looking
ahead or planning is a futuristic function.
5. planning is continuous. Planning is a never-ending or continuous
process, after making plans also planners keep making changes in the
plans according to the requirement of the company.
6. Planning involves decision-making: The planning function is needed
only when different alternatives are available and we have to select
most suitable alternative.
7. Planning is a mental exercise: It is a mental exercise. Planning is a
mental process which requires higher thinking.

IMPORTANCE OF PLANNING
1. Planning provides direction: Planning is concerned with predetermined
course of action. It provides the directions to the efforts of employees.
Planning makes clear what employees have to do, how to do, etc

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2. Planning reduces the risk of uncertainties: Organisations have to face
many uncertainties and unexpected situations every day. Planning.
helps the manager to face the uncertainty because planners try to
foresee the future by making some assumptions regarding future
keeping in mind their past experiences and scanning of business
environments. The plans are made to overcome such uncertainties.
3. Planning reduces overlapping and wasteful activities: Planning clearly
indicate what is to be done and by whom to be done Each department
each employee clearly knows what is their part
4. Planning promotes innovative ideas: Planning requires high thinking
and it is an intellectual process, So, there is a great scope of finding
better ideas, better methods and procedures to perform a particular
jobs.
5. Planning facilitates decision-making: Planning helps the managers to
take various decisions.
6. Planning establishes standard for controlling: Controlling means
comparison between planned and actual output and if there is variation
between both then find out the reasons for such deviations and taking
measures to match the actual output with the planned.
LIMITATIONS OF PLANNING
1. Planning leads to rigidity: Once plans are made to decide the future
course of action the manager may not be in a position to change them.
Following pre-decided plan.
2. Planning may not work in dynamic environment: Business
environment is very dynamic as there are changes continuously taking
place in economic, political and legal environment It becomes very
difficult to forecast these future changes.

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3. It reduces creativity: With the planning, the employees of the
organisation start working rigidly and they become the blind followers
of the plan only.
4. Planning involves huge cost: Planning process involves lot of cost
because it is an intellectual process and companies hire the professional
experts, to carry on this process.
5. It is a time-consuming process: Planning process is a time because it
takes long time to evaluate the consuming process alternatives and
select the best one.
6. Planning does not guarantee success: Sometimes, managers have false
sense of security that plans have worked successfully in past So these
will be working in future also.

PLANNING PROCESS
1. Setting-up of the objectives: In planning function manager begins with
setting up of objectives because all the policies, procedures and
methods are framed for achieving objectives only.
The managers must set up SMART objectives:
S – Specific
M – Measurable
A – Achievable
R – Relevant
T – time bound
2. Developing premises: Premises refer to making assumptions regarding
future. Premises are the base on which plans are made.
3. Listing the various alternatives for achieving the objective:. After
setting up of objectives the managers make a list of alternatives
through which the organisation can achieve its objectives .
4. Evaluation of different alternatives: After making the list of various
alternatives along with the assumptions supporting them, the manager
starts evaluating each and every alternative and notes down the
positive and negative aspects of every alternative.
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5. Selecting an alternative: The best alternative is selected but as such
there is no mathematical formula to select the best alternative
6. Implementing the plan: for implementing the plans into action, the
managers start communicating the plans to all the employees very
clearly because the employees actually have to carry on this activities.
7. Follow-up: Planning is a continuous process so the manager's job does
not get over simply by putting the plan into action. The managers
monitor the plan carefully while it is implemented.

PLAN
Plan is a document that outlines how goals are going to be met.
SINGLE USE PLANS
Single use plans are one time use plan. These are designed to achieve
a particular goal that once achieved will not reoccur in future.
FEATURES OF SINGLE USE PLAN
1. Single use plans are used only once.
2. Prepared to meet the demand of specific situation.
3. These are discarded when the situation is over.
4. Every time a new plan is prepared for new situation, e.g., budget,
programme, projects.
STANDING PLANS
Standing plans are also known as Repeat Use Plans. These plans focus
on situations Which occur repeatedly. Standing plans are used over and
over again.
FEATURES OF STANDING PLANS
1. These are recurring plans used for an indefinite period.
2. Standing plans are stable in nature.

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 3. These plans act as guidelines for smooth functioning of the
organisation, e.g., policy, procedure, rules, methods, etc.

TYPES OF PLANS
1. Objectives (Neither Single use nor Standing plan) :Objectives should
be SMART as
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Time bound
Features of Objectives
(a) Determine what is to be done?
(b) Is the end result of planning?
(c) All activities are guided towards objectives.
(d) Serve as guide for overall business planning.
(e) These are usually set by top level management.

2. Strategy (Neither single use nor standing plan): A strategy is a

comprehensive plan to achieve the organisational objectives.
The dimensions of strategy are:
(i) Determining long term objectives.
(ii) Adopting a particular course of action.
(iii) Allocating resources for achieving the objectives.
Features of Strategy
a. Is the blueprint of the business and provides outline of business?
b. Strategy is influenced by business environment.
c. Strategy directs future decision making and scope in long run.
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3. Policies (Standing plan): Policy can be defined as organisation's general
response to a particular problem or situation.
Features of Policies
a. Based on objectives.
b. Guides managers to implement strategy.
c. Policy is organisation's customised way of handling problems.
d. Policies define broad parameters within which a manager may
function.

4. Procedures (Standing plan): Procedures are required steps established

in advance to handle future conditions.
Features of Procedures
a. Sequence of steps to carry on different activities.
b. Generally meant for insiders only.
c. A strategy provides the broad contours of an organisation in
business
d. Strategies usually take the course of forming the organisation's
identity in the business environment.

5. POLICIES (STANDING PLAN): Policy can be defined as organisation's

general response to a particular problem or situation.
Features of Policies
(a) Based on objectives.
(b) Guides managers to implement strategy.
(c) Policy is organisation's customised way of handling
problems.
(d) Policies define broad parameters within which a manager may
function

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6. PROCEDURES (STANDING PLAN): Procedures are required steps
established in advance to handle future conditions.
Features of Procedures
(a) Sequence of steps to carry on different activities.
(b) Generally meant for insiders only.
(c) Are mostly in a chronological order.
(d) Exact manner in which an activity has to be done.

7.METHODS (STANDING PLAN): Methods can be defined as formalised or

systematic way of doing a job. The managers decide in advance the
common way of doing a job. So that,
(a) There is no doubt in the minds of employees;
(b) There can be uniformity in actions of the employees;
(c) These help in applying the techniques of standardisation and
simplification;
(d) Act as guide for employees.
Features of Methods
(e) Standardised way in which a task has to be performed.
(f) Selection of right method saves time, money and increases the
efficiency.
(g) Methods vary from task to task
6. RULES (STANDING PLAN) : Rules spell out special actions or non-actions
of the employees. There is no discretion allowed in rules,
Features of Rules
(a) Code of conduct or general instructions in any organisation.
(b) Specifies what to do and what not to do.
(c) Are rigid, stringent and compulsive in nature.
(d) They are usually the simplest type of plan.

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7. PROGRAMMES (SINGLE USE PLAN): Programmes are the combination
of objectives, policies, procedures and rules. All these Plans together
form a program.
Features of Programmes
(a) Detailed statement about a project.
(b) Is a combination of objectives, policies, procedures and rules.
(c) Is prepared for various activities.
(d) Ensure systematic working in an organisation.

8. BUDGETS (SINGLE USE PLAN): Budget is the statement of expected

result expressed in numerical terms. In budgets, the results are always
measurable and most of the time, these are financial in nature.
Features of Budgets
(a) Statement of expected result expressed in numerical terms.
(b) Serves as standard for measuring and comparing actual
performance.
(c) Quantifies future facts and figures.
(d) Budgets are prepared by managers at every level.

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