PLANNING PROCESS
As planning is activity there are certain reasonable measures for every
manager to follow:
(1) Setting Objectives
• This is the primary step in the process of planning which specifies the
objective of organisation i.e. what an organisation wants to achieve.
• The planning process begins with the setting of objectives.
• Objectives are end results which the management wants to achieve by its
operations.
• Objectives are specific and are measurable in terms of units.
• Objectives are set for the organisation as a whole for all departments and
then departments set their own objectives within the framework of
organisational objectives.
Example:
A mobile phone company sets the objective to sell 2, 00,000 units next year,
which is double the current sales.
(2) Developing Planning Premises
• Planning is essentially focused on the future and there are certain events
which are expected to affect the policy formation.
• Such events are external in nature and affect the planning adversely if
ignored.
• Their understanding and fair assessment are necessary for effective planning.
• Such events are the assumptions on the basis of which plans are drawn and
are known as planning premises.
Example:
The mobile phone company has set the objective of 2, 00,000 units’ sale on the
basis of forecast done on the premises of favourable Government policy
towards digitization of transactions.
(3) Identifying Alternative Courses of Action
• Once objectives are set, assumptions are made.
• Then the next step is to act upon them.
• There may be many ways to act and achieve objectives.
• All the alternative courses of action should be identified.
Example:
The Mobile company has many alternatives like reducing price, increasing
advertising and promotion, after sale service etc.,
(4) Evaluating Alternative Course of Action
• In this step, the positive and negative aspects of each alternative need to be
evaluated in the light of objectives to be achieved.
• Every alternative is evaluated in terms of lower cost, lower risks, and higher
returns, within the planning premises and within the availability of capital.
Example:
The mobile phone company will evaluate all the alternatives and check its pros
and cons
(5) Selecting One Best Alternative
• the best plan which is the most profitable plan and with minimum negative
effects is adopted and implemented.
• In such cases, the manager’s experience and judgement play an important
role in selecting the best alternative.
Example:
Mobile Phone Company selects more T.V advertisements and online marketing
with great after sales service.
(6) Implementing the Plan
• this is the step where other managerial functions come into the picture.
• This step is concerned with “DOING WHAT IS REQUIRED”
• in this step, managers communicate the plan to the employees clearly to
convert the plans into action.
• This step involves allocating the resources, organising for labour and
purchase of machinery.
Example:
Mobile Phone Company hires salesman on a large scale, creates T.V
advertisement, and starts online marketing activities and set up service
workshops.
(7) Follow Up Action
• Monitoring the plan constantly and taking feedback at regular intervals is
called follow-up.
• Monitoring of plans is very important to ensure that the plans are being
implemented according to the schedule.
• Regular checks and comparisons of the results with set standards are done to
ensure that objectives are achieved.
Example:
A proper feedback mechanism was developed by the mobile phone company
throughout its branches so that the actual customer response, revenue
collection, employee response, etc. could be known