To plan is to look ahead and chalk out the future course of operations of an enterprise. It aims at smooth flow of work. In an organisation, there can be various derivative plans like planning for buying raw materials and equipment, developing new product, recruiting and training the personnel, etc. Question 3 18. Policies act as guidelines for taking administrative decisions. Plans must be communicated in greater details to the subordinates to increase their understanding of the proposed action and for enlisting their co-operations in the execution of plans. To keep the enterprise as a going concern without any break, it is essential that planning must be a continuous process. The amount of detail depends on the amount of flexibility you want your managers and team to have. It means systematized pre-thinking for determining a course of action to achieve some desired result. Calculating and planning requirements for materials at all levels of the BOM. For example, if an organisation has set its objective to grow further, it can be achieved in several ways like expanding the field of business or product line, joining with other organisations, or taking over another organisation, and so on. Long-term goals are statements that drill down a level below the vision and describe how you plan to achieve it. Copyright 10. The quality of planning depends upon the abilities of the managers who are required to collect all relevant facts, analyse and interpret them in a correct way. Differences between or among stakeholders should be resolved in Strategies are the devices formulated and adopted from the competitive standpoint as well as from the point of view of the employees, customers, suppliers and government. After determination of the organisational goals, it is necessary to establish planning premises, that is, the conditions under which planning activities will be undertaken. Each long-term goal should have a few one-year objectives that advance your goals. All of the following are part of the planning function EXCEPT: a. Analyzing a situation. All in all, your communication plan needs the following elements: An understanding of all stakeholders’ preferences and requirements. Decision-making is required not only in planning, it is also necessary in other areas of management functions such as organising, direction, co-ordination, and control. Documentation reviews. Policies should be consistent and must not be changed frequently. Any mistake or error in planning is sure to upset other functions of management and, thus, precision is of utmost importance in every kind of planning. Customer needs must be met before wishes. Core values describe your beliefs and behaviors. For successful implementation of a plan, it must be communicated to all levels of the organisation. Objectives specify the results expected in measurable terms and indicate the end points of what is to be done; where the primary emphasis is to be placed, and what is to be accomplished by various types of plans. Whether internal or external, the success of the plans demands that it should be strategy-oriented. Thus, a rule may be incorporated in respect of purchase procedure that all purchases must be made after inviting tenders. The break-down of the master plan into departmental and sectional plans provides a realistic picture of the actions to be taken in future. From this are developed subordinate goals that contribute to the attainment of the general objective. Whatever be the nature of activity, management starts with planning. A. Some important definitions of planning, given by the eminent authors are stated below: According to Koontz and O’Donnell, planning is “an intellectual process, the conscious determination of courses of action, the basing of decisions on purpose, facts and considered estimates.”, “By means of planning management members try to look ahead, anticipate eventualities, prepare for contingencies, map out activities and provide an orderly sequence for achieving the objective.”, “The plan of action is, at one and the same time, the result envisaged, the line of action to be followed, the stages to go through, and methods to use.”. Prohibited Content 3. Rule is related to parts of a procedure. There must be complete agreement among the managers in respect of planning premises over which the structure of plan is to be framed. Above all, no planning can proceed without forecasting—which means assessing the future and making provision for it. Financial Planning: it’s Meaning, Importance and Elements – Discussed! The RBS is contained in the risk management plan. A local competitor with ties to non-local customers could be facing a financial situation, giving this business an opportunity. Through planning, the manager fixes the objectives of the organisation as a whole and, in the light of this, the goals of its various departments. Work Breakdown Structure. All planning work must spell out in clear terms the objectives to be realised from the proposed business activities. Each objective should have a plan that details how it will be achieved. Within each category, there may be several alternatives. Fire Up Your Strategic Framework for Your Organization's Success, You Can't Be a Real Leader Who People Want to Follow Without Vision. None can be a planner whose mind is not active, who does not possess any deliberate power and whose sense of judgement is not strong. Planning is the key to success of an organisation. The plan should be so prepared that there is sufficient scope for changing it from time to time. cannot be an isolated act apart from sales planning and production planning. It is a function of every manager at every level in the organisation. A project is a single-use plan which is a part of a general programme. B. Figure 2.2 “The Strategic Planning Process” and Figure 2.3 “Elements of a SWOT Analysis” show examples of internal and external factors and in a SWOT analysis. Privacy Policy 8. It must be based on clearly defined objectives. Business forecasting refers to analysing the statistical data and other economic, political and market information for the purpose of reducing the risks involved in making business decisions and long range plans. For preparation of such a plan, a definite process involving the following steps has to be followed: The manager must first identify the opportunity that calls for planning and action. place. It is prepared in the light of what the competitors are intending to do. Every lower-level plan serves as a means towards the end of higher plans. Mention may be made here of varied operating orders and instructions which are outside of planning, but are subject to decision­ making. The key elements of the benefits management plan are all of the following EXCEPT Benefits owner. Planning is concerned with the establishment of objectives of an enterprise and finding out the way of realisation of those objectives. Policies are statements or principles that guide and direct different managers at various levels in making decisions. After the evaluation of various alternatives, the most appropriate one is selected as the plan. There may be several departmental budgets which are again integrated into the master budget. What is the Importance of Planning in Management? Answer Save. Programmes are precise plans of action followed in proper sequence in accordance with the objectives, policies and procedures. If there is only one way of doing something there is no need of planning. Though a plan is prepared after reflective thinking, this does not mean that no departure can be made in the course of its operation. Content Guidelines 2. b. Once the organization has identified and classified all of its SBUs, some method must be established to determine how resources should be allocated among the various SBUs. ). Programmes, thus, lead to a concrete course of inter-related actions for the accomplishment of a purpose. In this process a hierarchy of objectives is created. The plans at each level of the organisation are made for the attainment of the appropriate objectives in the hierarchy. As a managerial function, planning is important for the following reasons: The first and most important reason for planning lies in the fact that it provides a basis on which decisions are made. E. the underlying corporate philosophy. Before publishing your articles on this site, please read the following pages: 1. But, decision-making has a wider connotation than planning. After formulating the basic and derivative plans, the sequence of activities is determined so that the plans are put into action. In a big enterprise, various policies are formulated for guiding and directing the subordinates in different areas of management. It will, thus, add to the quality of planning through the knowledge of additional facts, new visions and revealing situations. Explanation: Portfolio planning is an element of the strategic plan. (ii) Adequate knowledge about the capacity of the force available through observations and experiments and from established standards. Procedures outline a series of tasks for a specified course of action. All these steps in planning lead automatically to economy. A business plan should do all of the following EXCEPT:? So, uniformity must be there in all levels of planning to match the general plan. It must also achieve better results with the minimum of unexpected happenings. Planning as a managerial process consists of the following elements or components: The important task of planning is to determine the objectives of the enterprise. In fact, most of the company’s achievements can be attributed to careful planning. Internal factors include the organisation’s policies, resources of various types, and the ability of the organisation to withstand the environmental pressure. Which of the following are elements of planning business analysis approach? But sectional plans cannot but be inter-dependent. How (and Why) to Foster Employee Satisfaction, How to Answer Interview Questions About Your Career Goals. Answer: A 9. Since all alternatives cannot be considered for further analysis, it is necessary for the planner to reduce in preliminary examination the number of alternatives that do not meet the minimum preliminary criteria. A good mission statement should incorporate all of the following elements EXCEPT A. the customers the firm will serve. Alternative courses of action can be evaluated against the criteria of cost, risks, benefit and organisational facilities. The strong and weak points of every alternative should be analysed carefully. Briefly discuss project management and what it involves. Therefore, it is to be seen that what is expected is likely to be achieved. The essence of planning is the choice among alternative courses of action. Planning is a function of every manager at every level in an enterprise. Definition The problem statement should not pose a solution, accounts for current circumstances, and does not predict what future actions may occur. For example, the policy may be the recruitment of personnel from all parts of the country; but procedures may be to advertise and invite applications, to take interviews and offer appointment to the selected personnel. It must bridge the gap between where we are and where we want to go at the minimum cost. Elements of Control Plan. As such, it should communicate that dream to your employees and customers in an inspirational manner. It is an immense need for the managers of an enterprise to fix up their minds as to what they want to accomplish and then plan the use of time, resources, and efforts towards the achievement of their objectives. They are applied as and when required. Therefore, every organisation is required to specify what it wants to achieve. Thus, planning and control are inseparable. Quality-control systems specify an organizational structure that allows those responsible for quality to check the work being carried out at all levels. Thus, procedures mean definite steps in a chronological sequence within the area chalked out by the policies. The rules prescribe a definite and rigid course of action to be followed in different business activities without any scope for deviation or discretion. Want to Understand the Basic Job Description and Duties of a Manager? Policies provide guidelines to thinking and action, but procedures are definite and specific steps to thinking and action. Thus, a company may have a programme for the establishment of schools, colleges and hospitals near about its premises along with its expanding business activities. Planning also requires laying down of policies for the easy realisation of the -objectives of business. (iii) The priority to be given in succession for the accomplishment of different tasks through careful analysis. As the planning proceeds step by step, it foresees the changes likely to come and accordingly prepares its programme by necessary adjustments and adaptation. depending upon the situation. However, to plan any kind of work, the following facts demand utmost attention: (i) The nature, quality and quantity of work to be done, the best way of doing it, the time available for its accomplishment, how to do it, when it is to be done and who are to do it. It is the job of all managers in all types of organisation. By this we mean to say that the application of decision-making is extended beyond the horizon of planning and, in any business, almost every position is a decisional centre. Budgets for various periods can be prepared to make plans more concrete for implementation. Well-considered overall plans harmonies inter-departmental activities. Changes must necessarily be effected in the plan for taking into account new developments that may take place in the course of the operation of the plan. The aspects of this changing environment include changes in technology, government policies, the nature of competition, social norms and attitudes etc. A SWOT analysis provides businesses a situational investigation into their position in the market. Different plans are inter-dependent and inter-related. This is needed for improvement in the quality of planning. It also serves as a very important control device by measuring the performance in relation to the set goals. Because it is a template, or pattern, you can adapt and use it again—perhaps at a future job. A good plan should not only attain optimum relationship between output and input but should also bring the greatest satisfaction to those who are responsible for its implementation. It occupies first place and precedes all other functions of management which are designed to attain the goals set under planning. Planning prevents wastage of resources by choosing the best course of action from many alternatives. This set of goals usually starts three years out and extends to around five years into the future, directly aligning with the mission and vision statements. Planners must take into account the strategies of the rival organisations, otherwise the planning projection may land them in trouble. Private insurance is an important need. There may be production procedure, sales procedure, purchase procedure, personnel procedure etc. At a minimum, the EAP must include the following elements: • ways to report fires and other emergencies 1.. All following elements have been identified as important to supporting school’s level of involvement with law enforcement EXCEPT: A. Planning has to find out several alternatives, estimate the feasibility and profitability of the different alternatives, and to choose the best one out of them. Forecasting : Roles, Steps and Techniques | Management Function. RedHat has been a provider of Linux operating systems for over 25 years. Service and/or Product Line: In this section describe your service and product. Alternative course of action may be required to be undertaken in future in changed situations. They set forth overall boundaries within which the decision-makers are expected to operate while making decisions. Core values describe your beliefs and behaviors. An emergency action plan must be in writing, kept in the workplace, and available to employees for review. A. Planning pervades all managerial activities. It should be as flexible as possible to accommodate all possible changes in the enterprise with a view to coping with the changing conditions in the market. After the best alternative is decided upon, the next step is to derive various plans for different departments or sections of the organisation to support the main plan. There may be separate plans prepared in different levels in the organisation, but all the sub-plans must be united with the general plan so as to make up a comprehensive plan for operation at a time. While much more is often included in the plan, these seven elements will help you get started. Planning is essentially a process of deciding in advance what is to be done, when and where it is to be done, and how it is to be done, and by whom. Planning is basically a problem of choosing. Compassionate Eye Foundation/Hiep Vu/Getty Images. The future is uncertain. The more detail provided the less flexibility exists for those that follow the plan. Thus, various departments work in accordance with the overall plan, and co­ordination is achieved. In choosing from alternatives, the best alternative will be that which contributes most efficiently and effectively to the accomplishment of a desired goal. Content Filtrations 6. Thus, planning and budgeting are inter-linked. The following commission EXCEPT: are elements in a manager's compensation package b. c. benefits d. short term incentives salary 10. The capital required to obtain any equipment elements that are needed for the generation of income. They are the beliefs you have that will enable you to achieve your vision and mission. Programmes must be closely integrated with the objectives. Since planning is concerned with the identification of alternatives and selection of the most favourable alternative, it may rightly be described as “the most basic tool of management functions.” Thus planning is a process of deciding the business targets and charting out a rational path of attaining those targets. and assigning definite duties to each part. It will help in detecting the shortcomings and pitfalls of the plans and taking remedial actions well in time. It is part of the job that needs to be done in connection with the general programme. A plan without a vision is just drudgery. Default protocols to be followed across projects. There is another reason for choosing more than one alternative. It often describes what you do, for who, and how. (iii) The optimum period of time for achieving them. So, the planner must also be ready with alternative—normally known as contingency plan— that can help coping up with the changed situation. The plans for achieving your short-term goals are your action plans. Importance 4. Your team’s internal work style and communication preferences. But these different policies are co-ordinated and integrated in such a way that they ensure easy realisation of the ultimate objectives of business. The Joint Fires Element can be overwhelmed and the lethal targeting and fires function can be diluted if given staff responsibility for planning and integrating all nonlethal actions (e.g., reconstruction, engagement, reconciliation, etc. Long-term goals are the milestones a company sets to guide operations toward their far-reaching objectives. Enterprises start with a general objective. A particular objective can be achieved through various actions. c. hiring only … Question 15 – You work for a large manufacturing plant and you are working on a new project to release a new product line of toothpaste and salt. Risk attitude consist of all the following elements except for which one? A control plan is a document describing the critical to quality characteristics, the critical Xs or Ys, of the part or process. C. establish a strategy for acquiring sufficient funds. Thus, control is exercised in the context of planning action as the standards against which actual results are to be compared are set up through planning. C. Data precision rankings. Planning requires scientific thinking and it should spell out in clear terms the definition of the purpose, analyse the problem and make a careful and diligent search for all the facts bearing upon it. The Coca-Cola Company lists it's core values as: SWOT is an acronym for strengths, weaknesses, opportunities, and threats. Therefore, planning may be defined as follows: Planning is the process by which the managers of an organisation set objectives, make an overall assessment of the future, and chart the courses of action with a view to achieving the organisational goals. Note that these marketing plan elements correspond to a sample marketing plan template provided for use in this course. Examples of such investment may be outlays on land, building, machinery, research and development, etc. Elements of Planning: Planning as a managerial process consists of the following elements or components: 1. So, the first plan must follow the second plan and the second plan the third and so on in never-ending series in quick succession. Scientific management involves all the following except a. breaking down jobs into their simplest elements. Thus, decision­-making and planning have intimate relation with each other. The process of planning generates the purposeful and orderly setting up of activities to be carried on. After reading this article you will learn about:- 1. 1 / 1 pts Question 5 Which is the first step of Warrick’s six-step change implementation process? Important Strategic Planning Skills for Workplace Success, Here Are Some Keys to Make Strategic Planning Implementation Work, How to Implement a Long-Term Remote Work Plan, Understand Team Culture and the Role of Clear Expectations in Success, Use These Tips to Build an Organization Based on Values. There is no need for planning if there is only one way for doing something. Various alternative courses that are considered feasible in terms of preliminary criteria have to be taken for detailed evaluation. An emergency action plan must include at a minimum: 1910.38(c)(1) For example, one alternative may be the most profitable but requires heavy investment; another may be less profitable but also involves less risk. b. 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In future SMART as possible: specific, Measurable, Achievable, realistic, and is... Learn about planning in an existing operation of optimizing return at the of... Written, and co­ordination is achieved through various actions the course of action to control events! Is possible to execute the plan policies for the software package identifying and. Essentially in the process of planning an innovation or change in an inspirational manner one job to another—depending the... And dynamic environment are designed to attain the goals set under planning,. The foreman serves as a very important control device by measuring the performance in relation to the level. Package b. c. benefits d. Short term incentives salary 10 implementation of.! Employees for review are your action plans taxes, EXCEPT payroll, paid to the attainment the... Between vision, strategy and Tactic … which of the organisation are made the! 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