Introduction to Planning
The process of deciding on a course of action in advance to attain a desired goal is known as planning. It entails the creation of a strategy. It establishes the benchmarks to be met. It has to do with the formulation and achievement of a corporate organization’s goal. It is a fundamental management function that entails the creation of one or more detailed plans in order to achieve the best possible balance of needs and demands with available resources.
According to Marry Cushing Niles, “Planning is the conscious process of selecting and developing the best course of action to accomplish an objective.”
According to Stephen P. Robbins,” Planning is deciding in advance about what to do, how to do it, when to do it, and who is to do it. It provides the ends to be achieved.”
Importance of Planning
- Focus on goal
- Minimize uncertainty
- Maintain effective control
- Innovation and creativity
- Organizational effectiveness
- Economy in operation
- Facilitates coordination
- Avoids business failure
Types of Planning
On the basis of Hierarchy
- It’s a strategy that lays out resource allocation decisions, priorities, and action stages to achieve strategic objectives. A strategic plan is one that is made for the long run.
- Top-level executives create strategic strategies for their companies.
- The strategic plan establishes the organization’s direction.
- A tactical plan is a strategy for attaining the organization’s tactical objectives.
- It is aligned with the organization’s strategic goals and has a mid-term impact.
- They are created by an organization’s middle management.
- An operational plan is a strategy for attaining the organization’s operational objectives.
- It goes over the ways for achieving the objectives in great detail.
- Lower-level managers are in charge of preparing operational plans.
- These are short-term plans that are connected to each operational unit.
On the basis of Time
- A long-term plan is one that is focused at attaining the organization’s strategic goals.
- Long-term plans span several years, if not decades; most long-term plans are five years or longer.
- Top-level executives create long-term strategies.
- A mid-term plan is a strategy for attaining the organization’s tactical objectives.
- A mid-term plan is usually one to five years in length.
- Managers at the mid-level establish mid-term strategies.
- A short-term strategy is one that is targeted at attaining the organization’s operational goals.
- A mid-term strategy usually lasts one year or fewer.
- Lower-level managers are in charge of creating such plans.
On the basis of Use
Single use plans
- A single-use plan is a series of activities designed to accomplish a specific goal within a certain budget and time frame that will not be repeated in the future.
- It’s a term used to describe plans made for a one-time project or event.
- Depending on the project or event, the length of a single-use plan varies substantially.
- It could last a week, a couple of weeks, or even a few months.
- Standing plans are frequently rules, procedures, and programs created to ensure that a company’s internal operations run smoothly.
- They are frequently created once and then changed to meet the demands of the business as needed. Standing plans include things like policies and procedures.
- Such strategies are made with the long term in mind.
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