Friday 2 November 2018

The Functions of Planning

The functions of Planning in the management of the company's Board of Directors is how setting goals to be achieved and the strategies to achieve those goals. Simply put the planning function is what you want to accomplish and how to achieve it.

Planning or the functions of Planning is one of the 4 functions of management in addition to the functions of organizing, actuating and controlling. Planning is the earliest steps in the running of the company and could even effect the total for the company in the future.

The other management functions would follow the results of the planning is done. Other management function cannot work properly without the presence of management planning.

The Purpose of the functions of Planning

  • Every company has a different purpose unlike, certainly planning done any different.

  • But in General, the goal of corporate planning because:

  • It is a way to anticipate and recording changes

  • Directing to the administrator and the administrator

  • It can avoid or at least minimize wastage and overlap of implementation activities.

  • Planning to set standards that will be use to facilitate supervision.

The Benefits of Functions of Planning

  • functions of Planning has several benefits such as:

  • Results of planning into basic guidelines and reference in carrying out the activities

  • It could facilitate supervision against the activities conduct, would have been in accordance with the plan or not

  • Planning can minimize errors which may occur

  • The activities of each management unit more organize.

  • The implementation of a task to be more precise, effective and efficient

  • Irregularities that potentially could arise is anticipate as early as possible

  • Threats and barriers which might be predict will occur and be resolve as early as possible

  • Participating any change to the internal and external conditions that could affect the company's activities.

  • As a means of coordination between the field and Division within the company

  • Simplify surveillance

What are the activities of the management functions of planning?

  • Principal Activities perform the function of planning are:

  • Determine the direction of the company and its business targets

  • Strategics to reach the desire goal

  • Determine what resources are require to execute the strategy

  • Setting the standard or benchmark to determine the effort in achieving that goal.

Factors consider in Planning

Planning Restrictions

Planning essentially decides what it wants and what it will do. If you want more detail, planning should be able to answer some questions that are more familiar with the abbreviate 5W + 1 h.

# What

What company is acquiring?

Good Planning should be able to explain about the objectives to be achieve by the company.

  1. What is obtain in the short term?

  2. What it wants to get in the medium term?

  3. Goals like what is produced in the long run?

The answers to these questions will be relied upon in planning the next company.

# Why

  • (1) Why is an advance and a description of "what" the goals to be achieve by the company?

  • (2) Why the company decide that goal? Why not the other?

How is the reason that accompanies and also gave his?

What is the purpose of planning already realistic? Is it profitable and sensible planning to do?

# Where

(1) Where it relates to a project which goal in running will be done.

It should be explain why the program to achieve those goals should be specific and not available with respect to the other.

# When

(1) When will the goals set to be execute or perform?

Determine execution time jobs who want to run can't do gratuitous. There should be an analysis.

# Who

  • The who with regard to personnel that will run all the things that have been laid out above.

  • Who will undergo the task, why him and not others?

  • Who will the intend market share? and why not the other?

# How

  • Ask ! how do I aim it strives? How can an activity be run?

  • Is there any other alternative way can be done and why choose this way?

  • All these questions must be answer in the planning.

How a good plan?

Corporate plan should be drawn up with the good planning in order for systematic can be execute easily and minimize errors that can happen.

There are a few things to note to make good planning, including:

# 1. Flexible

The plan drawn up must be able to adapt to everything possible that could happen in the actual circumstances.

  • Sometimes the situation and conditions predict turn out to be a fumble from reality, the plan should be able to adjust to the changes that occur.

  • Not always alter the basic plan or change all the plans that have been drawn up, the only action is need adjustments in the face of changes that occur.

  • The plan should not be rigid.

Thus with the rigor of plan, execution of technical implementation plan could be detrimental to the company itself.

For example, the company has plans expanding market share, one trick is to reduce the selling price of the product.

However, when the plan is run, there was a rise in price of raw materials of products significantly so as to make the production costs to swell.

In the middle of a situation like this, when the selling price of the product is still "Stickler" want taken down according to plan, the company will probably not have trouble.

# 2. The Stability Plan

  • A plan drawn up should not have to undergo changes too big each time.

  • Stable Planning will make the company more focus on whatever he does.

  • For example, the company has plans expanding the market share of the company. In the middle of the journey, when the target of the plan is still not achieve, suddenly the company planned the construction of a new factory.

  • Of course this could make the focus of the company would be split, giving priority to the construction of a new factory or expand market share that had been plan earlier.

  • Because of the company's resources are limit, so the plan was compiled could not achieve everything.

  • Indeed, planning must be flexible, yet flexible here does not mean having to change plans "mother" of the company.

  • Flexible is how.

  • The way how the company running the compiled plan.

  • The main purpose of the plan or as much as possible has not change. Unless there are indeed things that force the company must change its purpose.

  • If the company has plans expanding market share and changing conditions.

  • Then the modify is a "how to" broaden the market or the shampoo. Instead of a plan or shampoo market.

  • If the previous use of A, then it can be replace with a plan b.

  • Points to the importance of planning is to have a clear purpose and focus.

# 3. Well-integrated

  • The plan must be communicate properly and easily understood by all parties that will carry out the plan.

  • This is to avoid different interpretation of different plan among the parties involve.

  • Communication error could make the plan cannot run well.

  • For example, what is done by the production management should be in accordance with the plans drawn up by the sales management and financial management. Should be suitable.

  • Likewise, with the other Management Division.

  • Don't walk alone on its own and even contradictory.

  • A good plan also has a balance responsibility on every part of the organization.

# 4. Detail

A good plan should be detail and include everything that is need in such a plan.
Especially about 5W + 1 h above.

Details of the plan, what to do, who is going to do, when to do and even the target to be achieve should be plan until the very bottom layer of management though.

# 5. Consider The Resources

As powerful as any of his plans, he should carefully take into account the resources that belong to the company.

Whether the plan is realistic and can be achieve with resources that are own or prove too " take the air" that are difficult to achieve.

All available resources be use effectively and helpless to the maximum.

The plan may be ambitious when resources are own can support it.

# 6. Simple and not difficult to be implement (Application)

A good plan is the plan simple and not difficult to run. This does not mean the difficult run plan into a plan that is not good.

It's not that ...

If there is an easier way, then it's better.

Minimal Effort with maximum results.

Planning is certainly taking into account all the possibilities that exist. Likely the easiest run option is prioritize.

The Process of Making Plans

# 1. Set tasks and Goals

  • The first step in putting together a planning is set tasks and goals.

  • The task is about what will be done by the designate "who".

  • The goal is what will be gain. The value of wanting to obtain.

  • A task that is execute is the desire goal. The task is definitely in tune with the goals.

  • A plan cannot be compiled without any clear objective.

# 2. Observation and Analysis

The next step is to conduct observations of matters relating to the efforts of achieving the objectives specify.

Some of the data collect and analysis done to determine how that will be use to run the plan.

# 3. Whip Up Some Possible

After some of the data has been analyze, the next step is setting up some alternatives or options in planning.

  • Each plan should at least set up some chances in achieving goals.

  • Alternatives another alternative can be prepare in the planning.

  • There is the possibility of a plan cannot run optimally. For that alternative plans that can be use should be prepare.

For example, the length of the completion of a task that turn out to be a fumble, cost efficiency is less than the plan target and others.

# 4. Create A Synthesis

Synthesis is to combine the various possibilities that exist as alternatives to be chosen.

Every possible weakness of each, combining several possibilities could have been making plans a much better alternative.

Who Are the Makers of the Plan?

# 1. The Planning Committee

The Planning Committee is compose of various elements that represent multiple parties that derive from the organizational structure of the company.

Each representative brings the plan, hope and mission of its own.

All the ideas that come from representatives of this group will be merge and cover up to detail the company's plans to be made.

There is a difference on planning of each Deputy in accordance with the divisions and offices. In general planning base on level of management was divide into:

# Top Management

  • Planning at this level of management are:

  • Strategic

  • Formulate long-term goals

  • Decision making

Plan be use as a guideline by the present management further down

# Middle-Level Management

The level management planning (middle) this tends to be administrative and prepared the various alternative ways to be forwarded to the management level below.

# Lower Level Management

Planning on lower level management focus more towards the technical planning field. The lower level management planning in more detail even very detail planning to execute that has been produce by middle-level management.

# 2. Planning Section

There are several companies that do indeed come with special units just to do the planning.

His job is just to draw up plans and there is no element that becomes representative of a part of the Organization of the company.

# 3. Staff Personnel

Functionally, in a company there are generally two groups, namely:

Executor. A group handle it job directly

Staff. Could be said as a thinker who indirectly produce the company's products. Its main task is to conduct data analysis of existing data and then plan something base on the results of the analysis of the data.

Form The Planning Form

# 1. The Global Plan

The plan can be said to be a global vision of the company, the company's direction. Will be brought where the company's future.

There are a few things into consideration in drawing up the plan of global companies commonly known as SWOT analysis.

  • Strength | The strength of the

Strength is all the things being the main force of the company.

Another Strength is the "brand" and the market share was already spread almost thoroughly region in India. Competitors still have yet to reach this stage.

  • Weakness | The weakness of the

Weakness or weakness is the other side of the strength that is own by the company.

  • Opportunity | Opportunities

Opportunity is an opportunity open to get the maximum results that are own by the company.

Sulk in the example above, PT Indonesia Cement business opportunities is still wide open with the status of India as a developing country. Developing countries that have thousands of physical project, infrastructure in need of cement. Not to mention about the market share of the household.

Needs of cement in the country still cannot fully met this is a huge opportunity with the number of competitors can still be counts on the fingers.

  • Threat | The barriers

Treat is pressure and obstacles inherent in the company.

Pressure or resistance could come from an internal or external company could even be attach at any industrial in charge by the company.

For example, it is still about PT Indonesia Cement, the new technology in the establishment of a building that is not too need cement could become threats to pressure the company for cement.

Maybe later will be found new technologies that can reduce the use of cement. Example of simple is the use of brick light installation not too need cement.

In addition, as a condition of state-own-enterprise can be unstable if the political conditions are volatile. Turn of the Minister of  for example, then it could just be a new Minister's policy direction is different from the previous one.

Of these SWOT analysis should be consider in the planning of the management of the company. The results of this analysis will be the guidelines for further planning of the more detail and specific.

# 2. Strategic Plan

The strategic plan is part of a global plan but more detail and detail.

Strategic plan drafting which will be run in achieving a global plan.

Usually the strategic plan is a long-term business plan and use the priority system which plans a priority will be executed first.

There are several reasons why strategic plans drawn up:

  • As a guideline for other planning that will run

  • Facilitate an understanding of the other planning

The starting point in the assessment of all activities perform by management and other parties.

# 3. The Operational Plan

Operational planning is a plan of operations will be complete in the short term.

There are two types in operational planning, namely disposable and planning anyway.

  • Disposable Plans | Single Use Plan

Disposable plans are planning that will not be use again after the goal is reach.

For example, the plan of purchasing the machine.

After the machine successfully bought, then no plan of buying the machine back at least in the next few years.

  • A Fixed Plan | Standing Plan

The plan remains operational planning is still going to be use again even though the goal has been achieve.

Usually a fix planning is complete on the basis of a standard approach and treatment of preexisting conditions can be predict in advance.

For example, the purchase of raw materials, the purchase of supplies, purchases of supplies and more. The activities that will be perform repeatedly each time.

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