Thursday 20 December 2018

Simple Steps of Management Planning process

Management Planning process

Management planning process is a step by step guide to creating a realistic organizational plan to meet set goals after assessment of available resources. It takes into consideration both long-term and short-term corporate strategies and spells out.

  1. Recognizing Need for Action:

    The first step in planning process is the awareness of business opportunity and the need for taking action. Present and future opportunities must be found so that planning may be undertaken for them. The trend of economic situation should also be visualize. For example, if thinking of the government is to develop rural areas as industrial centers, a far sight businessman will think of setting up units suitable to that environment and will avail the facilities offer for this purpose. Before venturing into new areas the pros and cons of such projects should be evaluate. A beginning should be made only after going through a detail analysis of the new opportunity.

  2. Gathering Necessary Information:

    Before actual planning is initiate relevant facts and figures are collect. All information relating to operations of the business should be collect in detail. The type of customers to be dealt with, the circumstances under which goods are to be provide, value of products to the customers, etc. should be study in detail. The facts and figures collect will help in framing realistic plans.

  3. Laying Down Objectives:

    Objectives are the goals which the management tries to achieve. The objectives are the end products and all energies are divert to achieve these goals. Goals are a thread which bind the whole company. Planning starts with the determination of objectives. The tie between planning and objectives helps employees to understand their duties. Objectives are the guides of employees. It is essential that objectives should be properly formulate and communicate to all members of the organization.

  4. Determining Planning Premises:

    Planning is always for uncertain future. Though nothing may be certain in the coming period but still certain assumptions will have to be made for formulating plans. Forecasts are essential for planning even if all may not prove correct. A forecast means the assumption of future events. The behavior of certain variables is forecast for constituting planning premises.Forecasts will generally be made for the following:

    • The expectation of demand for the products.

    • The likely volume of production.

    • The anticipation of costs and the likely prices at which products will be market.

    • The supply of labor raw materials etc.

    • The economic policies of the government.

    • The changing pattern of consumer preferences.

    • The impact of technological changes on production processes.

    • The sources for supply of funds.

    It is on the basis of these forecasts that planning is undertaken. The success or failure of planning will depend upon the forecasts for various factors mention above. If the forecasts are accurate then planning will also be reliable. The effect of various factors should be carefully weigh.

  5. Examining Alternative Course of Action:

    The next step in planning will be choosing the best course of action. There are a number of ways of doing a thing. The planner should study all the alternatives and then a final selection should be complete. Best results will be achieve only when best way of doing a work is select. According to Koontz and O'Donnell, "There is seldom a plan made for which reasonable alternatives do not exist." All the pros and cons of methods should be weigh before a final selection.

  6. Evaluation of Action Patterns

    After choosing a course of action, the next step will be to make an evaluation of those courses of actions. Evaluation will involve the study of performance of various actions. Various factors will be weight against each other. A course of action may be suitable but it may involve huge investments and the other may involve less amount but it may not be very profitable. The evaluation of various action patterns is essential for proper planning.

  7. Determining Secondary Plans:

    Once a main plan is formulate then a number of supportive plans are require. In fact secondary plans are mean for the implementation of principal plan. For example, once production plan is decide then a number of plans for procurement of raw materials, purchase of plant and equipment, recruitment of personnel will be require. All secondary plans will be a part of the main plan.

  8. Implementation of Plans:

    The last step in planning process is the implementation part. The planning should be put into action so that business objectives may be achieve. The implementation will require establishment of policies, procedures, standards and budgets. These tools will enable a better implementation of plans.

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