planning Flashcards
essential in every walk of life. Each and every person has to frame a plan to recede in his activities. The plan period may be short or long.
Planning is the first and foremost function of management.
planning
facilitates early achievement of objectives, which depends upon the efficiency of the planner.
effective planning
can develop his efficiency by preparing himself to face the functional developments.
planner
an intellectual process of thinking resorted to deicide a course of action which helps achieve the predetermined objectives of the organization future.
planning
are prepared for various departments, and then the top executives of the organization take steps to co ordinate the various departmental plans.
separate plans
“Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulations of proposed activities believed necessary to achieve desired results
Terry has rightly said that
Planning is looking into the future.
• Involves pre determined line of action.
• It discovers the best alternative out of available many alternatives.
• It requires considerable time form implementation.
• It is a continuous process.
• Its object is to achieve pre determined objectives in a better way.
• It integrates various activities of organization.
Characteristics of Planning
It is done for a specific period.
• It not only selects the objectives but also develops policies, programs and procedures to achieve the objectives.
• It is required at all levels of management.
• It is an interdependent process which co ordinates the various business activities.
• It directs the members of the organization.
Characteristics of Planning
Objectives of Planning
Reduces uncertainty
Anticipates unpredictable contingencie
Economy in operation
Brings cooperation and coordinatio
Reduce competition
Achieving the predetermine d goals
are considered while selecting the best alternative among the available ones.
Economy and certainty
• The nature of planning is as below that is self explanatory.
• Primary Function
• Planning contributes to objectives
• Planning is an intellectual activity
• Planning results in higher efficiency
• Planning is a continuous process
Nature of planning
Planning is flexible
• Entails unity and consistency
• Planning is common to all
• Basis for all managerial functions
• Getting coordination
• Considering limiting
Nature of planning
is guessing of the future course of events correctly, whereas planning is a wider term that includes forecasting and it is part of planning and is based on the past experience.
forecasting
Importance of Planning
tackling increasing complexities of business , effective utilization, to manage objective , convert uncertainty to certainty, effective control, help in coordination , avoiding business failure
Better utilization of resources
• Helps in achieving objectives
• Economy in operation
• Minimizes future uncertainties
• Improves competitive strength
• Effective control
• motivation
Advantages of planning
Cooperation
• Promote growth and improvement
• Develops rationality among management executives
• Prevents hasty judgment
• Reduces redtapism
• Encourages innovative thought
Advantages of Planning
Improves ability to cope with change
• Creates forward looking attitude in management
• Development of efficient methods
• Delegation of authority facilitated
• Anticipation of crisis
Advantages of Planning
Methods of Planning
Standing plans, Objective plans, Master plans
are treated as basic a plan that is necessary for all types of planning operations.
Objective also play role in organizing, directing and controlling.
Objective plans
includes policies and procedures and is liable repetitive actions. Actions can be repetitive and non repetitive. It helps ready guidelines for solving recurring problems.
Recurring problems are solved in different way
Standing plans
covers the complete course of action along with consideration of time and strategy. Plans may be either broad or detailed in character
Master plans
Limitations of Planning
Inflexibility
• Limitation of forecasts
• Unsuitability
• Time consuming
• Costly
• Mental ability
Limitations of Planning
False sense of security
• Delay during emergency period
• Capital Investment
• Political climate
• Trade union
• Technological changes
Obstacles of Planning
Unreliability of forecasts
• Recurrence of same type of problems
• Expensive
• Loss of initiative
analysis is a framework used to evaluate a company’s competitive position and to develop strategic planning.
SWOT analysis assesses internal and external factors, as well as current and future potential.
SWOT (strengths, weaknesses, opportunities, and threats)
is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry.
The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.
SWOT analysis
describe what an organization excels at and what separates it from the competition:
strengths
They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.
Weaknesses:
These are some commonly considered internal factors
Financial resources (funding, sources of income and investment opportunities)
• Physical resources (location, facilities and equipment)
• Human resources (employees, volunteers and target audiences)
• Access to natural resources, trademarks, patents and copyrights
• Current processes (employee programs, department hierarchies and software
favorable external factors that could give an organization a competitive advantage
opportunity
refer to factors that have the potential to harm an organization
threats
Competition. The potential actions of a competitor are the most common type of threat in a business context….
• Talent. Loss of talent or an inability to recruit talent. …
• Market Entry. The potential for new competitors to enter your market….
• Customer Service. …
• Quality. …
• Knowledge….
• Customer Perceptions. …
• Customer Needs.
Possible threats
