PROCESS OF PLANNING

 PROCESS OF PLANNING

Planning process consists of various steps in a sequence through which plans are formulated.

Perception opportunity is not strictly a planning process. However, it is very important for planning because it leads to formulate plans by providing due whether opportunity exist for taking up particular plans once the opportunity are perceived to be available, steps of planning  are undertaken.

1.       Setting objectives – major organizational objective are set. Objectives are the end results to be achieved by implementations of plans. Organizational objectives are specified in all key result area. Once organizational objectives are identified, objectives of organization units and sub units can be identified on the basis of organization objective.

 

Establishing planning premises- after setting organizational objectives, the next step is establishing planning premises i.e, the conditions under which planning activities will be undertaken. Planning premises are

1.       assumption about the expected environmental and internal conditions in future. These are based on which the plans are formulated.

There are two types of planning premises:-

A)     EXTERNAL:- it includes factors of environment which affect organizational working.

B)      INTERNAL:- includes organization policies, resources and ability of organization to with stand the environment pressure.

At the top level it focus externally, as one moves down the organization hierarchy emphasis on planning premises changes from external to internal.

 

2.       Identifying alternatives- based on the organization objectives and planning premises , various alternatives (course of action) are identified. It suggests that a particular objective can be achieved through alternative actions.

 

3.       Evaluating alternatives- In this, an attempt is made to evaluate how each alternative contribute to achieve objective of the organization in light of its resources and constraints. For evaluation of alternative rational criteria should be used like organizational vision, cost, return, risk, etc.

 

4.       Choosing alternative- after evaluating an alternative, the most suitable one is selected. Sometimes more than one alternative is equally good, in such case more than one alternative is chosen keeping in view the various planning premises. This is beneficial as the planner must be ready with alternative plan, known as contingency plan, which can be implemented in changing situations.

 

5.       Plan implementation- after selecting plan it is implemented i.e, putting the plan into action, for implementing the plan, various action plan known as supporting plans/ derived plans are formulated like, plans for buying equipments, buying raw materials, recruitment and training etc on the basis of main plan these are implemented.

 

6.       Follow up action- plan implementation takes a lot of time. Therefore, when the plan is taken into action, follow up action is required to see whether the plan is implemented according to the schedule or not.