Planning is important for all the types of organizations irrespective of its size,  variety of products, number of employees there is no standard planning process as such. Among which few of crucial steps are listed below

 

1) Perception Of Oppournuties.

This is not actual step in the planning however before going for planning process one has to study & find opportunity in the environment. If opportunity does not exist in the surrounding whole planning process may fail.So to make planning more successful one has to study legal, political framework or existing position, change in customer mindset change in technology competition,  the present position of the industry level.Here organization has to analyze its own strength& weakness if the good opportunity is existing in surrounding organization can proceed to next step.

For Eg. For Industries like hotels, the market is good nowadays because the income has been increased over last 5-6 years, the lifestyle of youth has been changed, even females are working more in number these days etc.

2) Establishment of Objectives

Once the opportunity is perceived in the organization and unit objectives are been set from which specific result are expected at the end of planning. The organizational objectives should be specific to all key result areas.

For eg Sales profitability, R& D, quality & so on. Once these objectives are set the objectives of lower units that are department objective setting is a crucial task which guides the organization throughout the planning process. Planning Premises

3) Planning premises

It is nothing but study of external & internal environment i.e SWOT analysis is nothing but the study of external & internal environment i.e SWOT analysis

External environment include the study of following

  1. Indian Economy.
  2. National income availability of natural resources.
  3. Availability of natural resources.
  4. Political, social, legal technology.
  5. Competitors plan –their status in the market.

While internal environment includes

  1. Availability of workforce.
  2. Availability Of funds cost effectiveness.
  3. Cost-effectiveness.
  4. Brand strength.
  5. High market share.

This one will analyze strength/weakness/opportunity  & treat in the organization & out of an organization.

4) Identification of alternative

This is an important step where the companies find various alternatives to achieve a particular objective.

For eg If a company wants to launch a new mobile hand, this can be done in various ways

  1. Creating mobile for youth
  2. Creating for low or high-class income group
  3. Whether smartphone including 3g & 4 g features
  4. Where should be mobile manufactured in India or out of India

5. Evaluation Of Alternatives

Various alternatives are evaluated for different criteria like cost, future competition, generation of profit, the requirement of manpower etc. Out of this best suitable alternative is been selected

6) Choice of alternative

After the evaluation of the various parameter, the best alternative is selected this alternative is selected by keeping in the view environmental factor. Planning process & objectives

7) Formulation Of Supporting Plan

Once the best alternative or plan is selected a various supporting plan are prepared to support the main plan like as

  1. Buying of raw material
  2. Recruitment of new staff
  3. Training of staff
  4. Advertisement plan
  5. Buying of equipment’s

8) Establishing sequence of activities

Once the supporting plan was prepared the sequence of actions are  decided

for eg Who will do a specific task when it will be completed what exactly he has to do etc

 

Importance of Planning in context with Principles of Management click here

 

 

 

 

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