PLANNING

Planning involves selecting missions and objectives and actions to achieve them.
STEPS IN PLANNING
Following steps are involved in planning:
1. BEING AWARE OF OPPORTUNITY: An awareness of opportunity in the external environment as well as with in the organization is the real starting point for planning, taking in view
a. The market.
b. Competition.
c. What customers want?
d. Our strength.
e. Our weaknesses.
2. SETTING OBJECTIVES: It means where we want to be and what we want to accomplish and when Objectives specify the expected results and indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies procedures, rules, budgets and programmes. The objective is then given to subordinate department to accomplish.
3. DEVELOPING PREMISES/PARAMETERS: Three types are:
a. Non-Controllable Parameter for example population growth, future price level, dollar rate, political environment.
b. Semi-Controllable Parameters for example labour turnover, labour policy, and price policy.
c. Assumed Parameters
4. DETERMINING ALTERNATIVE COURSES: The planner should search for and examine alternative courses of action, especially those not immediately apparent in case of failure of primary plan.
5. SELECTING A COURSE: This is the point at which the plan is adapted and procedural decisions are made.
6. CHECKING OF PLANNING PROGRESS: In this progress should be checked with respect to time.
7. CHECKING OF PLANNING PROGRESS: Objective is targeted and then derivative plans are made like: (a). Material Procurement.
(b). Machinery Plan.
(c). Labour Plan.
(d). Personnel Training Plan.
8. NUMERIZING PLANS BY BUDGETING: The overall budget s of an enterprise represent the sum total of income and expenses, with resultant profit or surplus and budget of major balance sheet items such as cash and capital expenditures. First short-range plans are made; if they give required %age of profit, only then long range plans are made.