nature, importance and purpose of planning process
TRANSCRIPT
NATURE, IMPORTANCE NATURE, IMPORTANCE AND PURPOSE OF AND PURPOSE OF PLANNING processPLANNING process
AJAY SIMHA K.J.1AP07EC005
INTRODUCTIONDefinition of planning
Considered as the most basic and parent exercise
It answers all basic questions
Nature of planning
Planning is goal orientedContinuous and ongoing process
(ex: movement of a ship)
It is a pervasive function- It is done by managers at all levels
Flexible in nature. (ex: colour television)
Contd….
Intellectual process- involves choice and decision making
It is an integrating process-improper planning results in random activity
Schematic Representation
GoalOriented
Integrating Process
Flexible
IntellectualProcess
PervasiveFunction
ContinuousAnd
Ongoing
NATUREOF
PLANNING
Importance and purpose
Minimizes uncertainty and risk-helps in decision making (ex: refrigerator)
Gives a clear view of the future-forecasting
Leads to effective use of resources and economic operation
Effective control-planning and control are inseparable and interdependent
Helps to search from various alternatives (ex: selection from various models)
Helps to identify potential opportunities and threats (ex: increase production when there is demand)
Leads to development of business strategies and budget planning
Contd….
Planning is useful for teamworkSense of direction and purposeConveying informationBuilding trustDividing responsibility Simplifying goals is possible
through planning
Contd…
IMPORTANCE AND PURPOSE OF PLANNING
Minimizes risk
Effective control
Forecasting
Economic operation
Choosing from alternatives
Identification of opportunities
Team work
Development of business strategies
Simplifying goals
Schematic Representation
LIMITATIONS OF PLANNING
Lack of reliable data-reliable information is not available
Lack of initiative-manager fails to take initiative
Costly process-time consuming and expensive process
Rigidity in organizational working
Non-acceptability of change-a commonly experienced phenomenon
External limitations-very difficult to predict
Psychological barriers
Contd….
SUMMARYA good plan must be-Specific and simpleLogicalComplete and integratedFeasibleFlexible-capable of being
controlled
“Planning is deciding in advance what is to be done in future.” ~Koontz.
“Plans are only good intentions unless they immediately degenerate into hard work.” ~Peter Drucker
“Thinking is the hardest work there is, which is probably the reason why so few engage in it...” ~Henry Ford.
"Planning is a trap laid down to capture the future." ~Allen
“Even if you're on the right track, you'll get run over if you just sit there.” ~Will Rogers.
“Planning without action is futile, action without planning is fatal.” ~Unknown.
“It's not the plan that is important, it's the planning.” ~Dr Graeme Edwards.