Making Planning Effective

What is Planning?
Planning involves determination of objectives of the

business, formation of programmes and courses of
action for their attainment, development of
schedules and timings of action and assignment of
responsibilities for their implementation.
Planning thus precedes all efforts and action, as it
is the plans and programmes that determine the
kind of decisions and activities required for the
attainment of the desired goals.
What is Planning Process?
The planning process is the steps a company takes to

develop budgets to guide its future activities. Planning
is ascertaining prior to what to do and how to do. It is
one of the primary managerial duties. Before doing
something, the manager must form an opinion on how
to work on a specific job. Hence, planning is firmly
correlated with discovery and creativity.
Types of Planning
• Strategic planning
-looks at the long-term issues of the organization, and helps
develop a plan for growth or change of business function.
Goals developed at the strategic planning-level are often
increased by dividing them into tactical and operational
levels.
• Operations planning
-focuses on day-to-day issues, such as staffing levels or
inventory quantities. Operational-level planning includes
more detailed objectives with concrete deadlines and task
assignments.
Types of Planning
• Tactical planning
-is used to reach the goals set out by strategic and operational
planning. Tactical planning includes short-term objectives and
tasks designed to create specific results within a limited time
span. Tactical plans often include operational level plans, and
make way for the development of contingency level plans.
• Contingency-level planning
-This includes more detailed action items with specified
responses in case of unexpected events or emergencies, such
as natural disasters or extreme weather events that disrupt
business operations.
Steps on making planning effective
Step # 1. Well-Defined Objectives:

• For efficient planning well-defined objectives are needed. Objectives are
to be rational and understandable. They should be realistic and idealistic.
Step # 2. Management Information System:

• For development of plans, collection of data, analysis and selection of the
right alternative is needed. Not for developing but also for evaluation of
plans management needs information.
Step # 3. Top-Level Initiative:
• To make planning effective they are originate at the top. The
top management is to take initiative in planning and must
support it and it should enlist the support of lower level
executives.
Step # 4. Planning should be Flexible:
• Its execution should be oriented to events. In case of changing
events alternate or contingent plans should be kept ready for
changes. They should be developed step by step.
Step # 5. Resistant to Changes:
• Resistance to changes should be met with patient selling of
ideas careful dissemination of information and aggressive
leadership.
Step # 6. Careful Premising:
• In planning premising is an important step. Planning
premises constitute a framework within which planning is
done. Premises are the assumptions to be made regarding
future happenings.
Step # 7. Integration of Long-Term and Short-Term Plans:
• Both short and long term plans are to be prepared and
integrated to achieve objectives of the organisation. They
should be prepared and integrated to achieve the
objectives of the organisation.
Step # 8. Cost-Benefit Analysis:
• The planners are to undertake cost-benefit analysis to
ensure that the benefits of planning are more than the
cost involved in it.
Step # 9. Proper Forecasting:
• One of the important steps in planning is forecasting. Management must
have a mechanism of forecasting changes in environment which are
influenced by economic, social, political and international factors.
Step # 10. Dynamic Managers:
• The managers associated with the task of planning should be dynamic in
outlook. They must have the initiative to make business forecasts and
develop planning premises. They should always keep in mind that
planning is looking ahead and he is to prepare plans for the future which is
highly uncertain.
How to make Management Planning more Effective?
1. Create climate for planning:

• Conducive climate must be provided so that activities proceed
smoothly and systematically and as planned.
• Planning must not be left to chance. A stepwise sequence needs to be
created so that top managers are able to remove obstacles to planning.
• This can be achieved by establishing clear-cut goals, realistic planning
premises and offering required information and appropriate staff
assistance at various levels as and when required.
2. Equal Participation:
• Plans can only be implemented if the employees acknowledge this
concept and are ready to participate in the whole processes.
3. Proper communication:
• Nothing can be possible in the organisation until and unless there is
a proper and a well developed communication network hence goals,
premises and policies must be properly communicated to people.
4. Integration:
• All the plans that have been formulated must be properly balanced
and integrated with the organisational Mission Statement. They
must support each other and should not work at cross purposes.
5. Strict monitoring:
• Plans must be subjected to regular and appraisal in view of the
dynamic nature of the environment that includes both the internal
as well as external changes.

Making Planning Effective

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What is Planning?

Planning involves determination of objectives of the

The planning process is the steps a company takes to

Step # 1. Well-Defined Objectives:

Step # 2. Management Information System:

1. Create climate for planning:

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