Question

Explain steps involved in process of planning.

Answer 1

Steps involved in process of planning:

1. Goal setting: Plans are the means to achieve certain ends or objec­tives. Therefore, establishment of organizational or overall objectives is the first step in planning. Setting objectives is the most crucial part of planning. The organizational objectives should be set in key areas of operations.

2. Developing the planning premises: Before plans are prepared, the assumptions and conditions underlying them must be clearly defined these assumptions are called planning premises and they can be identified through accurate forecasting of likely future events.

3. Reviewing Limitations: In practice, several constraints or limitations affect the ability of an organization to achieve its objectives. These limitations restrict the smooth operation of plans and they must be anticipated and provided for.

4. Deciding the planning period: Once the broad goals, planning premises and limitations are laid down, the next step is to decide the period of planning. The planning period should be long enough to permit the fulfillment of the commitments involved in a decision.

5. Formulation of policies and strategies: After the goals are defined and planning premises are identified, management can formulate poli­cies and strategies for the accomplishment of desired results. The res­ponsibility for laying down policies and strategies lies usually with management. But, the subordinates should be consulted as they are to implement the policies and strategies.

6. Preparing operating plans: After the formulation of overall operat­ing plans, the derivative or supporting plans are prepared. Several medium range and short-range plans are required to implement policies and strategies.

7.Integration of plans: Different plans must be properly balanced so that they support one another. Review and revision may be necessary before the plan is put into operation. Moreover, the various plans must be communicated and explained to those responsible for putting them into practice.