Planning involves selecting mission and objectives and the actions to achieve them; it requires decision making, which is, choosing from the alternatives available the future courses of action.
Plan thus provides a rational approach to achieve preselected objectives.
Planning also strongly implies managerial innovation, even planning and control are inseparable.
Plan can be defined in few steps like:
- Purpose of plan,
- Objective of plan,
- Strategies for completing plan,
Purpose of plan:
Purpose identifies the basic task of an organization or agency or any part of it.
Objective of plan :
Objectives are the ends towards which the activity is aimed.
Strategies for completing plan:
A strategy is defined as the determination of the basic long term objectives of an enterprise and adoption of action and allocation of resources necessary to achieve those goals.
Policies are plans in that they are general statements that guide in decision making, policies define an area within which a decision is to be made and ensure that the decision will be consistent with, and contribute to, an objective. Policies help decide issues before they become problems.
Procedures are plan that establish a required method of handling future activities.
Rules are usually the simplest type of plan. “Do Not Spit” is a rule that allow no deviation from a stated course of action.
Programs are a complex of goals, policies, procedures, rules, and task assignments, step to be taken, resources to be employed, and other elements necessary to carry out a given course of action; they are usually supported by budgets.
Budget is a statement of expected result expressed in numerical terms. It can be expressed in financial terms; in terms of labor-hours, unit of products, machine hours; or nay numerically measurable terminology,
All Managers should take a preliminary look at possible future opportunities and see them clearly and completely , know where they stand in light of their strengths and weakness, understand what problem they wish to solve and why, and know what they expect to gain.
Planning requires a realistic diagnosis of the opportunity situation.