Planning Process

                                                         Planning Process                           

The planning process is different from one plan to another and one organization to another. The whole planning process is classified into following steps –

1.     Establishing Objectives – The first and primary step in planning process is the establishment of planning objectives or goals. Infect, speak categorically about what is to be done and where to place initial emphasis. The determine course of action is adopted for each section or department, product, for a quarter, month, week etc. Finally, the manager should draft a final plan in definite terms.

2.     External Environment – It is necessary to consider the external environment of an organization. The term external environment includes socio-economics conditions and political conditions prevailing in a country. Every organization has to prepare the plan according to the changing trends in the external environment.

3.     Internal Environment – It can be otherwise called as recourse audit means an analysis of the strength and weakness of an organization. Due consideration in made on the availability of recourses, profitability, plant capacity, available manpower, communication effectiveness and other factors.

4.     Determining Secondary Plans – It flow from the primary or basic plan. The preparation of a secondary plan is necessary plan. The secondary plan includes production schedule, purchase of plants and machinery, purchase of raw materials, consumable stores, selection, training and placement of personnel and like.

5.     Determining Alternatives Courses – The next logical step in planning is to determining and evaluate alternative courses of action. There can hardly be any occasion when there is no alternatives properly assess may prove worthy and meaningful. These alternative courses must be developed before deciding upon the next plan.

6.     Evaluation of Alternatives – After having all the suitable alternatives along whit their strong and week point a planner is regarded to evaluate the alternative it must be done to arrive at a decision.

7.     Selecting a course of action – The selection of the best alternative is based on the best alternative on the weighing of various alternatives. A course of action is determining according to the circumstance prevailing. No partiality is shown while selecting the best alternatives.

8.     Formulation of Action Programme – The term action programme includes fixing time limit for performance, allocation of work to individuals and work schedule. These are necessary to achieve the objectives within the specified period.

9.     Planning Premises – A host of factors, both internal have to be considered in the planning process. Since it is impracticable for a manager to innumerable forces, they should consider only such factor as are materially relevant. But even these strategic factors are full of uncertainties. Such predictions and assumptions about the future are known as planning premises.

10.                         Securing Participation of Employees – The successful execution of any plan depends upon the extent of participation of employees. So, the management should involve employees in planning through communication, consultation and participation.