Question

state and explain the steps involved in planning process

Answer 1

The the success of the business depends to a large extent on the effective planning. Planning is a decision making process, which is concerned with deciding in advance what is to be done and how it is to be done. The logical and scientific planning must go through the following steps -

1. Setting objectives

2. Developing premises

3. identification of alternative course of action .

4. Evaluating alternative courses.

5. Selecting an alternative .

6. Implement the plan.

7. Follow up action

1. Setting objectives: Setting objectives is the first function in the process of planning. Objectives are the goals which determine what the organisation wants to achieve. They must be specific, realistic and measurable as far as possible. Every business organisation must have certain objectives . Objectives my be set for entire organisation or for each department or a unit within the organisation . Objectives should be stated clearly to all departments and employees.

2. Developing premises: Planning is essential for the accomplishment of objectives in uncertain future . As such plans are formulated with certain assumptions . Planning premises are the assumptions about the future conditions and events like trends in population , Changes in political and economic environment , variation in production cost and prices , government and legal regulations etc . Plans should be formulated by the management within the framework of the planning premises .

3. Identification of alternative courses of action : Once objectives are set and assumptions are made then alternative courses of action are to be identified through which the organisation can achieve its objectives . There many be many ways to act and achieve the objectives . The management should know all the alternative courses of action to achieve the objectives

4. Evaluating the alternative courses : The next set is to analyse the strength and weakness of each alternative . All alternative courses of action have their own merits and limitations and there is a need to evaluate each and every course of action in the light of objectives to be achieved .

5 . Selecting an alternative : This is an real point of decision making . After examining each and every possible course of action the best is to be selected from accomplishment of objectives of the organisation . The ideal course of action must be feasible , profitable and with minimum negative consequence .

6.Implement the plan : This step is concerned with putting the plan into action to achieve the objective. Implementation of the plan requires the formulation of policies, procedures, budgets & programs. It requires delegation of the requisite authority & responsibility to the subordinates. It also requires co-operation, participation & commitment of subordinates for efficient implementation of the plan.

7. Follow up action : To see whether plans are being implemented and activities are performed as per plan adopted is also a part of planning process. Monitoring the plan is equally important to ensure that the objectives are achieved.

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