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Fundamental Management

Planning is a strategic process aimed at achieving objectives and solving problems within organizations, involving steps such as choosing a destination and evaluating routes. It enhances efficiency, reduces risks, and optimizes resource utilization, while also fostering collaboration among employees towards common goals. Successful planning requires clear goals, effective communication, accountability, and the ability to adapt to changes, ultimately preparing businesses for future uncertainties and growth opportunities.

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6 views

Fundamental Management

Planning is a strategic process aimed at achieving objectives and solving problems within organizations, involving steps such as choosing a destination and evaluating routes. It enhances efficiency, reduces risks, and optimizes resource utilization, while also fostering collaboration among employees towards common goals. Successful planning requires clear goals, effective communication, accountability, and the ability to adapt to changes, ultimately preparing businesses for future uncertainties and growth opportunities.

Uploaded by

prabinkunwar099
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Planning:

"Planning is usually interpreted as a process to develop a strategy to achieve desired objectives,


to solve problems, and to facilitate action" .Patrick Montana and Bruce Charnov outline a three-
step result-oriented process for planning:1

 choosing a destination
 evaluating alternative routes
 deciding the specific course of the plan

In organizations, planning can become a management process, concerned with defining goals for
a future direction and determining on the missions and resources to achieve those targets. To
meet the goals, managers may develop plans such as a business plan or a marketing plan.
Planning always has a purpose. The purpose may involve the achievement of certain goals or
targets.

Major characteristics of planning in organizations include:

Planning increases the efficiency of an organization.


Planning reduces risks.
Planning utilizes with maximum efficiency the available time and resources

The concept of planning in organizations involves identifying what an organization wants to do


by using four questions: "where are we today in terms of our business or strategy planning?
Where are we going? Where do we want to go? How are we going to get there?...

Guidelines for Successful Planning and Implementation


Step-by-Step Procedure
Involve the Right People in the Planning Process
Write Down the Planning Information and communicate it widely
Goals and Objectives Should Be SMARTER
Build in Accountability (Regularly Review Who's Doing What and By When?)
Note Deviations from the Plan and Replan Accordingly
Evaluate the Planning Process and the Plan
Realize that the Recurring Planning Process is at Least as important as the Plan Document
Ensure the Nature of the Process is Compatible to the Nature of Planners
A Critical -- But Frequently Missing Step -- Acknowledgement and Celebration of Results

Why Is Planning Important?


Planning is essential to the success of any business. When a company has a plan to follow,
leaders are better equipped to prepare for the future. A business plan creates a focus for the
company, uniting employees toward common goals. When everyone works together, it’s easier
to manage time and resources, to position the company for growth.

1
Barron's Management book fourth edition, Authors: Patrick J. Montana and Bruce H. Charnov
i) Set Goals
Planning helps a business identify its goals. Preparing for the future allows business
leaders to consider the impact they would like the company to have and to find a way
to get there. When a team works together to set goals, it allows everyone to be on the
same page, working toward a common, shared purpose. Workers are better able to
recognize ways to work to achieve goals, as well as behaviours to avoid that could
prevent the company from reaching its objectives.

ii) Manage Time Efficiently


If a company doesn’t know what it’s working to achieve, leaders won’t know where
to focus their efforts. When a business plan isn’t in place, a company often wastes
time on tasks that bring little or no added value to the bottom line. Planning allows a
business to determine which
Responsibilities are most important, so that proper time can be allocated to completing
them.

iii) Allocate Resources


Employees can only handle so many projects at one time. Having a plan to guide the
direction of the company allows managers to choose assignments for employees to
work on that make the most sense to meet the objectives of the business. When
everyone works together on projects that can have the most impact, it puts the
company in a better position to achieve success.

iv) Prepare for Uncertainty


When a company has a plan in place, management is better-equipped to handle
uncertainty. Plans can be created to handle possible future scenarios, so that the
company is prepared for any situation with a list of resources. Ambiguous
circumstances can bring a company down, but proper preparation can be the key to
staying afloat during hard times.

v) Grow Existing Business


Proper planning allows management to expand the business. When a plan is in place,
management is able to easily review the strengths and weaknesses of the company.
This allows leaders to map out areas into which the business could successfully
expand. Having a strategic plan makes it easier to identify opportunities for new
business.

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