Planning does not guarantee success because plans need to be properly drawn up and implemented. Managers may rely on previously successful plans, but these may not always work again due to unknown factors. Complacency and a false sense of security can lead to failure.
The steps taken by management in the planning process include setting objectives, developing premises, identifying alternative courses of action, evaluating alternatives, selecting an alternative, implementing the plan, and following up on the plan.
Planning is closely connected with creativity and innovation because it involves formulating ideas on how to work on particular tasks before doing them.
Planning is the primary function of management as it lays down the base for other functions of management.
The features of planning highlighted are: Planning is pervasive (involves representatives from all levels of management), Planning is futuristic (aims to improve future market standing), and Planning is a mental exercise (involves brainstorming to determine steps).
Effective planning requires foresight, intelligent imagination, sound judgement, and logical and systematic thinking rather than guesswork or wishful thinking.
A budget is a fundamental planning instrument that represents all items in numbers, making it easier to compare actual figures with expected figures and take corrective action. It involves forecasting and serves as a control device.
Forecasting is important because it is a technique of gathering information about future conditions such as demand for a product, policy changes, interest rates, prices of capital goods, and tax rates. Accurate forecasts are essential for successful plans.
Selection of proper methods saves time, money, and effort, and increases efficiency.
Planning focuses on achieving objectives, is a primary function of management, is pervasive, continuous, futuristic, and involves decision making. It is also a mental exercise.
A budget is a statement of expected results expressed in numerical terms, quantifying future facts and figures.
Planning is deciding in advance what to do and how to do it, involving setting objectives and developing appropriate courses of action to achieve these objectives.
Before starting a task, a manager must formulate an idea of how to work on it, which involves setting objectives and planning the course of action.
Intuition can be important in selecting the most viable alternative, sometimes leading to a combination of plans instead of one best course.
Follow-up action is important to ensure that plans are being implemented and activities are performed according to schedule, ensuring that objectives are achieved.
Planning is required at all levels of management and in all departments of the organization, though the scope of planning differs at different levels.
Selecting an alternative is the real point of decision making. The best plan, which is the most feasible, profitable, and has the least negative consequences, should be adopted and implemented.
The company keeps all its products at a lower rate to be affordable for poor people.
Objectives are usually set by the top management and serve as a guide for overall planning.
Planning involves making decisions by choosing from alternative courses of action to achieve set objectives.
Procedures are steps to be carried out within a broad policy framework to enforce a policy and attain pre-determined objectives.
Methods provide the prescribed ways or manner in which a task has to be performed considering the objective, dealing with a task comprising one step of a procedure.
Planning serves as the basis for coordinating the activities and efforts of different divisions, departments, and individuals, ensuring clarity in thought and action, and minimizing or eliminating useless and redundant activities.
Mansukhbhai emerged with the innovative Mitticool fridge in 2005 after several tests and support from GIAN.
Procedures describe steps to be followed in particular circumstances, such as the procedure for reporting progress in production.
Weighing the pros and cons of each alternative.
Rules are considered to be plans because they provide specific guidelines and actions that must be followed, ensuring consistency and control within an organization.
The first step in the planning process is setting objectives.
Planning ensures that individuals in the organization work in coordination, preventing employees from working in different directions and helping the organization achieve its desired goals.
A business should avoid holding an excess balance of cash because it gives little or no return. The business needs to assess and plan its cash needs with caution.
If planning is not implemented, it becomes a futile exercise as the plans will not lead to any actual results or improvements.
Programmes are detailed statements about a project outlining objectives, policies, procedures, rules, tasks, human and physical resources required, and the budget to implement any course of action.
Planning reduces the risk of uncertainty by preparing forecasts and providing a clear direction for future actions.
Single-use and standing plans are part of the operational planning process.
Putting the plan into action.
Objectives are the desired future position that the management would like to reach.
Planning can be challenging in a changing environment because it relies on predictions and assumptions that may not hold true as conditions change.
Who are the customers? What is the demand for the product? Which channel of distribution to use? What is the pricing policy? How do we advertise the product?
Major company policies are known to customers, clients, competitors, etc., whereas minor policies are applicable to insiders and contain minute details vital to employees.
Planning leads to rigidity because a well-defined plan with specific goals may not allow managers the flexibility to adapt to changed circumstances.
Planning is usually done by top management, and the rest of the members just implement these plans. This reduces the creativity of middle management and other decision-makers.
Procedures are routine steps on how to carry out activities, detailing the exact manner in which any work is to be performed in a chronological order.
Objectives or goals specify what the organization wants to achieve.
Planning is referred to as the primacy of management because it precedes other functions and provides the basis for all other managerial functions.
Managers must contribute ideas and understand how their actions contribute to achieving objectives.
Their future plans include starting a factory with the aid of the National Innovation Foundation at IIM Ahmedabad and making a MittiCool house.
Because planning is concerned with the future, which is uncertain, and every planner uses conjecture about what might happen in the future.
Planning is essential for business organizations to manage operations and move towards achieving goals.
Planning is futuristic as it involves looking ahead, preparing for future events, and using forecasting to anticipate future conditions and draw plans accordingly.
Objectives provide direction for all managerial decisions and actions, and planning provides a rational approach for achieving these predetermined objectives.
Premises are assumptions about the future that serve as the base material for drawing plans. They can be in the form of forecasts, existing plans, or past information about policies.
Planning enables a manager to look ahead and anticipate changes, showing the way to deal with changes and uncertain events by deciding in advance the tasks to be performed.
Planning is deciding in advance what to do and how to do. It involves setting objectives and developing an appropriate course of action to achieve these objectives.
Planning is continuous because plans are prepared for specific periods of time, such as a month, a quarter, or a year, and need to be updated regularly.
Planning involves setting goals, which provide the standards against which actual performance is measured. This helps managers know whether they have attained the goals and allows for corrective measures if there are deviations.
It is the real point of decision-making where the best plan has to be adopted and implemented.
Rules are specific statements that tell what is to be done.
Policies are general statements that guide thinking or channelize energies towards a particular direction and provide a basis for interpreting strategy.
Decisions such as whether to manufacture or buy requirements, how to select vendors, how many suppliers to purchase from, and the criteria for choosing suppliers.
Planning is considered a continuous process because it involves drawing new plans based on new requirements and future conditions, following a cycle of framing, implementing, and creating subsequent plans.
Planning involves decision making because it requires choosing from among various alternatives and activities. The need for planning arises only when there are multiple options available.
The objective of Polaris's expansion plan is to increase their capacity to employ 800 more professionals within six months.
A cash budget is a tool to help management plan and control the use of cash. It shows the estimated cash inflows and outflows over a given period, helping determine the net cash position (surplus or deficiency).
Time is considered a limited resource in planning because if it is not utilized judiciously, changing environmental conditions may render business plans ineffective.
Rules are specific statements that inform what is to be done, allowing no flexibility or discretion, reflecting a managerial decision that a certain action must or must not be taken.
Planning helps the manager look into the future and make a choice from various alternative courses of action by evaluating each alternative and selecting the most viable proposition.
Plans can be classified as Objectives, Strategy, Policy, Procedure, Method, Rule, Programme, Budget.
A strategy provides the broad contours of an organization’s business and refers to future decisions defining the organization's direction and scope in the long run.
Policies are general statements that guide thinking or channelize energies towards a particular direction.
Determining long-term objectives, adopting a particular course of action, and allocating resources necessary to achieve the objective.
Decisions like whether the organization will continue in the same line of business, combine new lines of activity with the existing business, or seek to acquire a dominant position in the same market.
The business environment is dynamic and consists of various dimensions like economic, political, physical, legal, and social. It is difficult to accurately assess future trends, and changes in these dimensions can create obstacles to effective planning.
The implementation step involves putting the plan into action, such as organizing for labor and purchasing machinery if the plan is to increase production.
Planning focuses on achieving objectives by setting specific goals in the plans along with the activities to be undertaken to achieve these goals.
Once objectives are set and assumptions are made, the next step is to identify alternative courses of action to achieve the objectives. These alternatives can be routine or innovative.
Planning is the first function of management, allowing new ideas to take the shape of concrete plans, guiding all future actions leading to the growth and prosperity of the business.
One major benefit of planning is that it provides direction for action by clearly stating how work is to be done and ensuring that goals or objectives are clearly defined.
Identifying alternative courses of action and making assumptions to act upon them.
A strategy provides the broad contours of an organization’s business and refers to future decisions defining the organization's direction and scope in the long run.
Ms Rajni has performed the step of 'Identifying alternative courses of action' in the planning process.
Planning does not ensure success because it cannot predict all future events and uncertainties, and it may not be flexible enough to adapt to changes.
The manager may use his/her discretion to interpret and apply a policy within the broad parameters defined by the policy.
Unforeseen events, changes in costs and prices, environmental changes, government interventions, and legal regulations can all affect business plans.
Planning provides the basis of control because the nature of corrective action required depends upon the extent of deviations from the standard.
Planning involves huge costs in terms of time and money, such as checking the accuracy of facts, scientific calculations, boardroom meetings, discussions with experts, and preliminary investigations to determine the viability of the plan.
A single-use plan is developed for a one-time event or project and is not likely to be repeated in the future. Examples include budgets, programs, and projects.
Developing premises involves using conjecture about what might happen in the future, as planning is concerned with the uncertain future.
A strategy is a general plan prepared by top management outlining resource allocation, priorities, and takes into consideration the business environment and competition.
Objectives are very basic to the organization and define the future state of affairs which the organization strives to realize, serving as a guide for overall business planning.
Programmes are detailed statements about a project outlining the objectives, policies, procedures, rules, tasks, human and physical resources required, and the budget to implement any course of action.
Because changes in the economic, political, social, legal, and technological environment will affect an organization’s strategy.
They are guides to managerial action and decisions, making it easier to resolve problems or issues.
Planning helps managers achieve their goals by allowing them to think in advance about what to do and how to do it, making business predictions, and setting targets.
Planning reduces creativity because employees are often not allowed to deviate from plans or act on their own, leading to a loss of initiative and creativity. They tend to think along the same lines as others, resulting in a lack of innovation.
The primary purpose of planning in an organization is to set objectives and targets, formulate an action plan to achieve them, and measure actual performance against these targets.
Objectives should be stated clearly for all departments, units, and employees.
Alternative courses of action should be evaluated by weighing the pros and cons of each. This involves assessing the positive and negative aspects of each proposal in light of the objective to be achieved, considering variables such as risk and return in financial plans.
Planning provides directions, reduces risks of uncertainty, reduces overlapping and wasteful activities, promotes innovative ideas, facilitates decision making, and establishes standards for controlling.
Setting objectives for the entire organization and each department or unit within the organization.
Monitoring the plans is important to ensure that objectives are achieved.
The main aspects in the definition of planning include setting objectives, identifying resources, and determining the steps necessary to achieve the objectives.
Strategic decisions taken by business organisations include entering new markets, launching new products, mergers and acquisitions, and major investments.
Planning is considered a time-consuming process because drawing up plans can take so much time that there is little time left for their implementation.
A standing plan is used for activities that occur regularly over a period of time, ensuring that internal operations run smoothly. Examples include policies, procedures, methods, and rules.
Planning can be defined as setting objectives for a given time period, formulating various courses of action to achieve them, and then selecting the best possible alternative from among the available options.
Methods provide the manner in which a task has to be performed, while rules are very clearly stated as to exactly what has to be done, like reporting for work at a particular time.
Planning leads to rigidity, reduces creativity, involves huge costs, is a time-consuming process, does not work in a dynamic environment, and does not guarantee success.
Objectives are the desired future position that the management would like to reach, representing the end result of activities.
The type of plan adopted by Rama Stationery Mart is a 'Policy'.
a. Budget - Single use plan. b. Method - Standing plan.
The first step in planning is setting objectives.
Procedures are routine steps on how to carry out activities.
While planning promotes innovative ideas by providing a structured approach, it can also reduce creativity by imposing rigid guidelines and limiting spontaneous thinking.
The type of plan highlighted is a 'Strategy'. Its three dimensions are scope, resource allocation, and competitive advantage.
Objectives need to be expressed in specific terms, measurable in quantitative terms, in the form of a written statement of desired results to be achieved within a given time period.
A budget is a statement of expected results expressed in numerical terms, quantifying future facts and figures.
Organisations are not always able to accomplish all their objectives due to unforeseen changes in the environment, resource constraints, and implementation challenges.
Setting objectives provides direction and ensures that organizational members do not deviate from the plans.
If planning is not acted upon or implemented, it becomes a futile exercise and does not contribute to achieving organizational goals.
Planning does not guarantee success; it requires proper implementation and consideration of unknown factors.
Planning is a continuous process that involves framing, implementing, and following up with new plans based on future conditions.
The steps typically include setting objectives, analyzing the environment, developing alternative strategies, evaluating alternatives, selecting the best course of action, and implementing the plan.
Managers need to set objectives to know where they have to go and to provide direction for all managerial decisions and actions.
Objectives are defined as ends which the management seeks to achieve by its operations, representing the desired future position.
Planning can reduce creativity as it is primarily done by top management, leaving little room for input from middle management and other decision-makers.
Planning, being the first function of management, allows new ideas to be transformed into concrete plans, guiding future actions for business growth.
Objectives should be expressed in specific, measurable terms, often in the form of a written statement of desired results to be achieved within a given time period.
Mansukhbhai created the Mitticool fridge, an innovative product made from clay.
Premises.
The essence of planning is deciding in advance what to do and how to do it, bridging the gap between the current state and desired objectives.
Planning involves looking ahead and preparing for future events to effectively meet them, based on forecasting.
Implementing the plan involves putting the plan into action, which may require additional resources like labor and machinery.
Planning coordinates activities across different divisions and departments, ensuring clarity in thought and action, which minimizes confusion and redundancy.
A cash budget is a tool that helps management plan and control cash use by estimating cash inflows and outflows over a period.
Planning helps managers evaluate various alternatives and select the most viable option, aiding in rational decision-making.
Planning leads to rigidity, making it difficult for managers to adapt to changed circumstances.
Time is a limited resource because if not utilized judiciously, changing conditions in the environment may render business plans ineffective.
Planning helps individuals in the organization work in coordination, preventing them from working in different directions and enabling the organization to achieve its desired goals.
Planning allows managers to look ahead and anticipate changes, enabling them to develop responses to uncertain events and tasks in advance.
A budget helps compare actual figures with expected figures and serves as a control device to manage deviations.
Procedures are steps to be carried out within a broad policy framework and are meant to enforce a policy to attain predetermined objectives.
Clearly defined goals ensure that employees are aware of what the organization needs to achieve and what actions they must take to reach those goals.
A single-use plan is developed for a one-time event or project and is not likely to be repeated in the future.
The first step in planning is setting objectives.
Planning can lead employees to follow orders rather than formulate their own plans, resulting in a lack of innovation.
A strategy provides the broad contours of an organization’s business and defines its direction and scope in the long run.
If too much time is spent on planning, there may be insufficient time left for actual implementation.
The two main types of plans are single-use plans and standing plans.
The risk-return trade-off.
Ms Rajni has performed the step of identifying options for achieving objectives.
It is the real point of decision making where the best plan has to be adopted and implemented.
The term 'primacy of planning' refers to the idea that planning precedes other functions of management.
Programmes are detailed statements about a project which outline the objectives, policies, procedures, rules, tasks, human and physical resources required, and the budget to implement any course of action.
Plans can be classified as Objectives, Strategy, Policy, Procedure, Method, Rule, Programme, and Budget.
In a dynamic environment, changes in economic, political, and social dimensions make it difficult to accurately assess future trends, which can disrupt planning.
Planning requires choosing among various alternatives, which necessitates the existence of multiple options.
Procedures are routine steps detailing the exact manner in which work is to be performed, specified in chronological order.
Plans may need to be modified due to unforeseen events, changes in costs, environmental changes, government interventions, and legal regulations.
Planning involves setting objectives and developing appropriate courses of action to achieve these objectives, requiring decision-making from alternative courses of action.
The need for planning arises only when there are alternatives available, necessitating thorough examination and evaluation.
Planning provides directions, reduces risks of uncertainty, and establishes standards for controlling, which facilitates decision making.
Changes in the economic, political, social, legal, and technological environment will affect an organization’s strategy.
Policies serve as guides to managerial action and decisions in the implementation of strategy, making it easier to resolve problems or issues.
Managers may use their discretion to interpret and apply a policy, allowing for flexibility in decision-making.
The primary purpose of planning is to set objectives and targets, formulate an action plan to achieve them, and provide direction for action.
Objectives specify what the organization wants to achieve, providing direction to all departments and units.
Objectives should be stated clearly for all departments, units, and employees, ensuring they percolate down to each unit and employee at all levels.
Programmes are detailed statements that outline objectives, policies, procedures, rules, tasks, resources, and budget for implementing a course of action.
Monitoring the plans is equally important to ensure that objectives are achieved.
A strategy provides the broad contours of an organization’s business and refers to future decisions defining the organization's direction and scope in the long run.
Considerations include whether to make or buy requirements, how to select vendors, how many suppliers to purchase from, and the criteria for choosing suppliers.
The features highlighted are: Planning is pervasive as it involves all levels of management, Planning is futuristic as it aims to improve market standing in the future, and Planning is a mental exercise as it requires brainstorming and strategic thinking.
Planning is closely connected with creativity and innovation as it requires formulating ideas on how to work on particular tasks.
To turn dreams into reality, managers need to work hard in thinking about the future, making business predictions, and achieving targets.
Follow-up action is important to ensure that plans are being implemented and activities are performed according to schedule, helping to achieve objectives.
Single-use plans are designed for specific situations, while standing plans are ongoing and used repeatedly.
Methods provide prescribed ways to perform a task, specifying how a particular step of a procedure should be executed.
Rules are specific statements that dictate what must or must not be done, allowing no flexibility or discretion.
Planning leads to rigidity, reduces creativity, involves huge costs, is time-consuming, does not work in a dynamic environment, and does not guarantee success.
Setting objectives for the entire organization and each department or unit within the organization.
Rama Stationery Mart has adopted a standing plan by deciding to make all payments by e-transfers only.
The main aspects include setting objectives, determining actions to achieve those objectives, and allocating resources.
Rules are specific statements that tell what is to be done.
Intuition plays an important part in selecting the most viable alternative, and sometimes a combination of plans may be selected instead of one best course.
Costs may include time spent checking facts, expenses for meetings, discussions with experts, and preliminary investigations.
Planning requires foresight, intelligent imagination, and sound judgment, making it an intellectual activity.
Identify alternative courses of action.
Evaluating alternative courses.
A standing plan is used for activities that occur regularly over a period of time and is designed to ensure smooth internal operations.
His future plans include starting a factory with the aid of the National Innovation Foundation and making a MittiCool house, which will be eco-friendly.
Excess cash balances yield little or no return, so businesses must assess and plan their cash needs cautiously.
Planning is required at all levels of management and in all departments of the organization.
No, planning is not an exclusive function of top management; it is required at all levels and in all departments.
Procedures are routine steps on how to carry out activities.
A budget is a statement of expected results expressed in numerical terms, quantifying future facts and figures.
Managers must contribute ideas and participate in the objective-setting process, understanding how their actions contribute to achieving objectives.
Developing premises is crucial as planning is concerned with the uncertain future, requiring planners to use conjecture about what might happen.
Planning focuses on achieving objectives, is a primary function of management, is continuous and futuristic, and involves decision making.
Selecting an alternative.
It involves making conjectures about what might happen in the future, as planning is concerned with the uncertain future.
Planning is the primary function of management that lays down the base for other functions.
Strategic decisions include market entry, product development, and resource allocation.
This is a standing plan.
Planning reduces the risk of uncertainty by preparing forecasts and providing a clear direction for future actions.
Accurate forecasts are essential for successful plans as they provide the necessary information for making assumptions.
Objectives serve as a guide for overall business planning and are focused on broad, general issues.
Planning involves setting goals, which serve as standards for measuring actual performance and identifying deviations for corrective action.
Decisions may include whether to continue in the same line of business, combine new lines of activity, or seek to acquire a dominant position in the same market.
A marketing strategy should address questions such as who are the customers, what is the demand for the product, which channel of distribution to use, what is the pricing policy, and how to advertise the product.
Yes, planning can work in a changing environment as it provides a framework to adapt and respond to changes.
Planning does not ensure success because unforeseen circumstances and changes in the environment can impact outcomes.
Standing plans include policies, procedures, methods, and rules that enhance efficiency in routine decision-making.
The three dimensions are determining long-term objectives, adopting a particular course of action, and allocating resources necessary to achieve the objective.
Weighing the pros and cons of each alternative.
Planning is purposeful and has no meaning unless it contributes to the achievement of predetermined organizational goals.
Policies are general statements that guide thinking and channel energies towards a particular direction, providing a basis for interpreting strategy.
Major company policies are known to all stakeholders, while minor policies are applicable to insiders and contain detailed information vital to employees.
While planning can limit creativity by imposing structure, it can also promote innovative ideas by providing a clear direction.
This is a single-use plan.
A budget is a statement of expected results expressed in numerical terms, quantifying future facts and figures.
Once objectives are set, assumptions are made, and the next step is to act upon them.
Rules provide a framework for decision-making and guide behavior, thus serving as a plan.
Objectives can be said to be the desired future position that the management would like to reach.
Policies are general statements that guide thinking or channel energies towards a particular direction.
The type of plan is a tactical plan, which includes dimensions such as objectives, actions, and resources.
Organizations may face resource constraints, unexpected challenges, or changes in the external environment that hinder goal achievement.
Feasibility, profitability, and least negative consequences.
Planning is continuous, with plans prepared for specific periods of time, such as a month, a quarter, or a year.