PLANNING — Definition, Scope & Objective | MYMCQHUB
DEFINITION OF PLANNING
A plan is a forecast for accomplishment. It is a predetermined course of action. It is today’s projection for tomorrow’s activity. In other words, to plan is to produce a scheme for future action, to bring about specified results at a specified cost, in a specified period of time.
Management thinkers have defined the term, basically, in two ways:
1. Based on futurity: “Planning is a trap laid down to capture the future” (Allen). “Planning is deciding in advance what is to be done in future” (Koontz). “Planning is informed anticipation of future” (Haimann). “Planning is ‘anticipatory’ decision-making” (R.L. Ackoff).
2. As a thinking function: “Planning is a thinking process, an organised foresight, a vision based on fact and experience that is required for intelligent action” (Alford and Beatty) “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.”
It is deciding in the present, what is to be done in future. It is the process of thinking before doing. A plan is a specific, documented intention consisting of an objective and an action statement. The objective portion is the end, and the action statement represents the means to that end. Stated another way, objectives give management targets to shoot at, whereas action statements provide the arrows for hitting the targets. Properly conceived plans tell what, where and how something is to be done.
CHARATERISTICS OF PLANNING
1. Planning is goal-oriented: All plans arise from objectives. Objectives provide the basic guidelines for planning activities. Planning has no meaning unless it contributes in some positive manner to the achievement of predetermined goals.
2. Planning is a primary function: Planning is the foundation of management. It is a parent exercise in management process. It is a preface to business activities.
3. Planning is all-pervasive: Planning is a function of all managers. It is needed and practised at all managerial levels. Planning is inherent in everything a manager does. Managers have to plan before launching a new business.
4. Planning is a mental exercise: Planning is a mental process involving imagination, foresight and sound judgment. Planning compels managers to abandon guesswork and wishful thinking.
5. Planning is a continuous process: Planning is continuous. It is a never-ending activity. Once plans for a specific period are prepared, they are translated into action.
6. Planning involves choice: Planning essentially involves choice among various alternative courses of action.
7. Planning is forward looking: Planning means looking ahead and preparing for the future. It means peeping into the future, analysing it and preparing for it.
8. Planning is flexible: Planning is based on a forecast of future events. Since future is uncertain, plans should be reasonably flexible.
9. Planning is an integrated process: Plans are structured in a logical way wherein every lower-level plan serves as a means to accomplish higher level plans. They are highly interdependent and mutually supportive.
10. Planning includes efficiency and effectiveness dimensions: Plans aim at deploying resources economically and efficiently. They also try to accomplish what has been actually targeted. The effectiveness of plans is usually dependent on how much it can contribute to the predetermined objectives.
OBJECTIVES OF PLANNING
1. Planning provides directions:By stating in advance how the work is to be done, planning provides direction for action. If there was no planning, employees would be working in different directions and the organization would not be able to achieve its goals efficiently.
2. Planning reduces the risk of uncertainty:Planning is an activity which enables a manager to look ahead, anticipate changes, consider the impact of changes and develop appropriate responses.
3. Planning reduces wasteful activities:Planning serves as the basis of coordinating the activities and efforts of different departments and individuals whereby useless and redundant activities are reduced.
4. Planning promotes innovative ideas:Planning is the first function of management. Managers get the opportunity to develop new ideas and new ideas can take the shape of concrete plans.
5. Planning facilitates decision making: Under planning targets are laid down. The manager has to evaluate each alternative and select the most viable option. Thus planning facilitates decision making.
6. Planning establishes standards for controlling: Planning provides the standards against which the actual performance can be measured and evaluated. Controlling is blind without planning. Thus planning provides the basis for controlling.
