PLANNING - MEANING AND CONCEPT

 

PLANNING

MEANING AND CONCEPT

Planning has been defined as one of the five major functions of management. Planning is the bridge between the present and the future.

Planning is a decision making activity requiring the process of ascertaining objectives and deciding on activities to attain these objectives.

Planning is also a process of preparing for the change and coping with uncertainty by formulating future course of action.

Basic purpose of planning is to reduce the risk and uncertainity.

Planning is required at all the levels though there is a greater need of it at the higher level. It is divided in two levels:-

A)     HIGHER LEVEL- planning is generally a long term, covering a period of between 6 months to 10 years , and is concerned with goals, strategies for the entire organization.

B)      LOWER LEVEL- planning is short term ranging from day to day and maximum 1 month and is only concerned with individual work units or departments.

The important aspect of planning process are defining and establishing objectives , policies, procedures, methods, rules and regulations ,budget, programmes , strategies, and etc.

The concept can be understood as –

P – performance of the past

L – loopholes of yesterday

A – analytical study of P&L

N – new goals for future

Planning is the first and most important function of Management , because “management starts with planning and ends with control”.

It bridges the gap between where we are and where we want to go. It is a process of visualizing into the future and discover alternative courses of action so as to select the best alternative, to achieve the desired goal.

DEFINATION OF PLANNING

Theo Haimann- “Planning is the deciding in advance, what is to be done”.

ACCORDING TO CLAUDE S GEORGE, “planning involves looking ahead, conceptualizing about future events and making decisions today which affects the future”.

ACCORDING TO KOONTZ AND O DONNELL, “planning is an intellectual process, the conscious determination of future course of action, the basing of decision on purpose, facts and considered estimate.

ACCORDING TO LOUIS A ALLEN, “planning involves the development of forecast, objectives, policies, programmes, procedure, schedules and budgets.

 

CONCEPT

There are two terms-

1.       PLANNING- it is a process consisting of various steps.

2.       PLAN- it is a commitment to a particular course of action, believed necessary to achieve particular results.

for example- government of India prepares 5 year plans, which consists of various actions to be taken , results to be achieved and resources to be used. These plans are prepared through planning process.

“Planning involves deciding in advance what to do and how to do it, i.e., planning decides future course of action which an organization takes.