Answer the following Questions:
Define planning and explain its nature.
ANSWER:
Planning states in advance where to move and in which direction to move. It is a continuous process that helps in reducing the risk of uncertainty. Planning is an essential activity that provides the rationale for undertaking policies to achieve the set goals. The following points highlight the nature of planning:
i. Objective oriented - Planning serves as a basis for all other functions. It helps in determining what goals are to be achieved and how those goals are to be achieved. Every management should formulate plans keeping specific goals in mind. These plans should ensure that the desired objectives are attained. Managers should make sure that the plans made are purposeful.
ii. Stepping stone - Planning acts as the stepping stone in the success of any organisation. This means that planning precedes all other functions like organising, directing, staffing and controlling. This is because plans state the objectives and all other functions are in accordance with those objectives. Once the plans are determined, the role of other interrelated functions comes into play. Thus, planning sets the basis for other functions of management.
iii. Pervasive - Planning must be done at all levels of an organisation. It is not just a function of the top-level managers; it should be performed at every level of management. However, its scope differs along the various dimensions of a business. For example, the top-level managers chalk out policies regarding the overall management, the middle-level managers decide upon the authority to be given to their subordinates and the lower-level managers prepare small targets for day-to-day operations.
iv. Continuous - Planning should be done continuously. This is because after the completion of one planned project, a need arises for the formulation of another plan, keeping in view new objectives and circumstances. Moreover, within a planned period, a need may arise for modifying the plans as per the changing needs and requirements. Thus, planning has no end. It is a continuous process; it continues throughout the life of an organisation.
v. Choice making - Planning is a process of making choices among different alternatives available for the attainment of the desired objectives. These alternatives are based on the path to be taken and strategies or policies to be used for the achievement of goals. Managers need to evaluate these choices thoroughly and then select the most rational scheme for achieving the set objectives.
vi. Futuristic - Planning should be futuristic in nature. This means that it should be able to foresee and analyse the future. Planning should be done to prepare the organisation to deal with any future event. Managers should be able to anticipate probable situations and take steps accordingly to cope up with those situations in an efficient manner.
