What
Steps Comprise the Planning Process?
The
following are the many phases of the planning process:
1. Setting goals
Plans are the tools used to carry out specific goals or objectives.
Therefore, the first stage in planning is to set organisational or general
objectives. The most important aspect of planning is setting objectives. Key
operational areas should be the focus of the organization's goals.
should be measured and, to the extent possible, defined in plain language
that can be verified. The goals are decided upon taking into account the
chances that management see. The executives' values and views, the organization's
mission, its resources, and other factors all play a role in determining goals.
In order to create strategic and procedural plans, objectives provide
instructions (what to do). Without knowing what needs to be achieved, one
cannot establish plans. The mission of a company is made up of its objectives.
They provide a template for future behaviour.
Clear, specific, and educational objectives are required. Departmental,
sectional, and individual objectives should be separated into major goals.
Planning professionals need to be completely informed of the opportunities in
order to set realistic objectives The issues that the business is likely to
encounter.
2. Creating the planning assumptions:
Plans must have its underlying assumptions and conditions, or
"planning premises," well specified before they can be created.
Planning premises can be found by accurately projecting expected future events.
These are true forecasting data. Environmental assessment aids in
identifying opportunities and limitations. Sound planning requires analysis of
both internal (controllable) and external (uncontrollable) forces. Premises are
important elements that set planning parameters.
They are essential to the success of planning because they provide individual future facts for each tenant. With the situation having changed, they require adjustment. Plans that can change can be made in case something unexpected happens.
3. Examining Restraints:
In reality, a number of restrictions or limitations interfere with an
organization's capacity to accomplish its goals. These constraints prevent
plans from operating as intended and must be foreseen and accommodated for.
Finance, human resources, materials, power, and machines are the main
focuses of imitations. It is important to accurately identify the enterprise's
strengths and weaknesses.
4.
Deciding the planning period:
The next stage is to choose the planning period after the broad goals,
planning assumptions, and restrictions have been established. The length of the
planning period should allow for the fulfilment of the commitments associated
with a choice.
This is referred to as the commitment principle. The length of the
planning period is determined by a number of variables, including the future
that can be fairly foreseen, the time needed to receive capital investments,
the projected future supply of raw materials, the lead time in developing and
commercialising a new product, etc.
5.Development
of strategies and policies:
Management
can create policies and strategies for achieving desired results once the goals
are defined and the planning assumptions are determined. Management is
typically in charge of formulating policies and plans. However, since they will
be carrying out the plans and strategies, the subordinates should be consulted.
To choose
the best policy for the company, alternative plans of action should be created
and properly assessed. The creation and assessment of alternatives benefit
greatly from the application of creativity, foresight, experience, and
quantitative tools.
The pros and
cons of the available options should be assessed in light of the planning
assumptions and objectives. The numerous options may be blended in action if
the examination reveals that more than one solution is equally good.
6. Creating
operating plans is step
The
preparation of the derivative or supporting plans comes after the creation of
the overall operating plans. It takes a number of medium and short-term plans
to put policies and objectives into action.
The
components of these plans are protocols, programmers, schedules, budgets, and
guidelines. Such plans are necessary for the execution of fundamental plans.
Operational
plans represent commitments about tactics, resources, etc. These plans are
beneficial for carrying out long-term strategies. To maintain operational
continuity, time and sequence of actions are decided along with supporting
strategies.
7. Plan
integration:
To support
one another, various plans must be well balanced. Prior to implementation, the
plan may require review and adjustment. The people in charge of carrying out
the various plans must also be informed and given an explanation.
For plans to
be implemented successfully, subordinates' involvement and collaboration are
required. Plans that have already been put in place should be evaluated
occasionally in order to adjust them as needed.
To find any
flaws or hazards in the plans under changing circumstances, a system of ongoing
evaluation and appraisal should be developed.
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