State any three points of importance of planning function of management.
(i) Provides directions: Planning provides directions by deciding the goals and objectives to be achieved and how such goals to be achieved what action should be taken.
(ii) Reduces overlapping and wasteful activities: Planning reduces overlapping and wasteful activities by coordinating the activities of different. As the top management are aware of the desired goals and policies and plans they coordinate their efforts and work to achieve that goal without any delays and waste.
(iii) Pervasive: Planning must be done at all levels of the management and in all departments of the organisation. Planning is required at all departmental levels and stage in an organisation.
What are the main points in the definition of planning?
Following are the main points in the definition of planning:
(i) What to do? (ii) How to do it?
(iii) When to do it? (iv) Who is to do it?
What kind of strategic decisions are taken by business organisations?
The main strategic decisions may include the following:
(i) Whether the company will continue the existing business? or
(ii) Whether the company will combine some new products to the existing business? or
(iii) Whether the company will try to acquire the maximum market share in the existing business?
How does planning provide direction?
Under the process of planning the objectives of the organisation are defined in simple and clear words. The obvious outcome of this is that all the employees get a direction and all their efforts are focussed towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organisation.
Why are rules considered to be plans?
Plan is a sort of commitment to accomplish all the activities needed for the attainment of special results. In this way, rules are also plans as they are helpful for the attainment of special results.
What are the main features to be considered by the management while planning?
Explain the features of planning.
Following are the features of planning:
(i) Planning focuses on achieving objectives: Management begins with planning and planning begins with the determining of objectives. In the absence of objectives no organisation can ever be thought about. With the determining of objective, the way to achieve the objective is decided in the planning. In case, it is necessary to change the previously decided course of action for the attainment of objectives, there is no hesitation to do so. It is thus clear that planning is helpful in the attainment of objectives.
(ii) Planning is Primary Function of Management: Planning is the first important function of management. The other functions, e.g., organising, staffing, directing and controlling come later. In the absense of planning no other function of management can be performed. This is the base of other functions of management.
(iii) Planning is Pervasive: Since the job of planning is performed by the managers at different levels working in the enterprise, it is appropriate to call it all pervasive. Planning is an important function of every manager, he may be a managing director of the organisation or a foreman in a factory. The time spent by the higher level managers in the process of planning is comparatively more than the time spent by the middle-level and lower-level managers. It is, therefore, clear that all the managers working in an enterprise have to plan their activities,
(iv) Planning is Continuous:
Planning is a continuous process because:
(a) A plan is prepared for a particular period. Hence, there is need for a new plan after the expiry of that period.
(b) In case of any discrepancy plans are to be revised.
(c) In case of rapid changes in the business environment plans are to be revised.
(v) Planning is Futuristic: Planning decides the plan of action - what is to be done, how is it to be done, when is it to be done, by whom is it to be done, all these questions are related to future. Under planning, answers to these questions are found out. While an effort is made to find out these answers, the possibility of social, economic, technical and changes in legal framework are kept in mind. Since planning is concerned with future activities, it is called futuristic.
(vi) Planning involves decision making: Planning becomes a necessity when there are many alternatives to do a job. A planner chooses the most appropriate alternative. Therefore, it can be asserted that planning is a process of selecting the best and rejecting the inappropriate. It is, therefore, observed that planning involves decision making.