Meaning of Planning
Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence, planning is firmly correlated with discovery and creativity. But the manager would first have to set goals. Planning is an essential step what managers at all levels take. It needs holding on to the decisions since it includes selecting a choice from alternative ways of performance.
As planning is activity there are certain reasonable measures for every manager to follow:
- Setting Objectives: The primary step is to establish objectives. Every establishment must have definite objectives. Objectives may be fixed for the complete organisation and each division or section within the company.
- Developing Premises: Planning is involved with the future which is unpredictable and every detailer is using theory about what might occur in future. Hence, the manager is expected to make some opinions about the future. These theories are called premises. Assumptions are the foundation element upon which policies are to be formed.
- Identifying alternative courses of action: Once objectives are introduced, presumptions are made. Then the following step would be to work upon them. There may be many steps to perform and accomplish objectives.
- Evaluating alternative courses: The subsequent step is to estimate the pros and cons of all alternative. Each area will have multiple variables which have to be measured against each other. The positive and negative features of each program need to be assessed in the information of the goals to be obtained. In financial plans, for instance, the risk-return trade-off is very normal.
- Selecting an alternative: This is the actual purpose of decision making. The best plan has to be selected and executed. The perfect idea, of course, would be the most likely, practical and with limited negative results.
- Implementing the plan: This is the step where other managerial duties also come into understanding. The step is concerned with setting the plan into execution, i.e., doing what is needed.
- Follow-up action: To mark whether plans are being executed and actions are implemented according to plan is also part of the planning method. Controlling the plans is evenly important to assure that objectives are achieved.
The above mentioned is the concept, that is elucidated in detail about the ‘Planning Process’ for the class 12 Commerce students. To know more, stay tuned to BYJU’S.