Wednesday, January 27, 2010

Planning


- Selection of short- and long-term objectives and the drawing up of tactical and strategic plans to achieve those objectives. In planning, managers outline the steps to be taken in moving the organization toward its objectives. After deciding on a set of strategies to be followed, the organization needs more specific plans, such as locations, methods of financing, hours of operations, and so on. As these plans are made, they will he communicated throughout the organization. When implemented, the plans will serve to coordinate, or meld together, the efforts of all parts of the organization toward the company's objectives.
- Getting ready to do some thing.
- The design of a desired future and of effective ways of bringing it about (Ackoff).
- Planning is a continuing activity since this process goes on and on as long as organizations exist.

Planning exists everywhere and anytime in our lives. Without planning, we can do nothing and we can achieve nothing.

For example; if someone asks you the following question:

Do you want to go anywhere or somewhere?
Of course your answer will be somewhere because anywhere means you haven’t planned anything yet but if you say that you are going somewhere, it means you have planned about it.
By planning, you can save time, resources and energy.

What should a plan be?
A plan should be a realistic view of the expectations. Depending upon the activities, a plan can be long range, intermediate range or short range. It is the framework within which it must operate. For management seeking external support, the plan is the most important document and key to growth. Preparation of a comprehensive plan will not guarantee success, but lack of a sound plan will almost certainly ensure failure.

Purpose of Plan
Just as no two organizations are alike, so also their plans. It is therefore important to prepare a plan keeping in view the necessities of the enterprise. A plan is an important aspect of business. It serves the following three critical functions:
Helps management to clarify, focus, and research their business's or project's development and prospects.
Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years.
Offers a benchmark against which actual performance can be measured and reviewed.

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