Nature, elements and types od planning PDF

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Characteristics of planning / Nature of planning: 1. Planning is primary function of management: It is the first function of management and it involved in all levels of managerial functions, so sometimes it called as an essence of management. 2. Planning focuses on objectives: Planning is for the achievement of organizational objectives. The purpose of every plan is to create a route map for the achievement such objectives. 3. Planning is a function of all managers: Business organization may include three levels of managers like top, middle and lower. In business organization planning is done in these three levels. 4. Planning as an intellectual process: Planning is a mental work basically concerned with thinking before doing. It is an intellectual process and involves creative thinking and imagination. 5. Planning as a continuous process: Planning is a continuous and permanent process and has no end. A manager makes new plans and also modifies the old plans while executing existing of plans. It is a never ending process. 6. Planning is dynamic (flexible): Planning is a dynamic, because, changes and modifications are continuously done in the planned course of action based on the changes in business environment. 7. Planning secures efficiency, economy and accuracy: Planning will lead to the attainment of objectives at the least cost. It should also help in the optimum utilization of available human and physical resources by securing efficiency, economy and accuracy. 8. Planning involves forecasting: Planning mainly depends business forecasting. Forecasting means the uses of historical data as inputs to make prediction on the direction of future trends. 9. Planning is a linking factor: An organization may involve factors like men, money, machines, materials and management, planning helps these factors to be linked. 10. Planning is realistic: A plan always outlines the results to be attained most of the time it may realistic and successful so planning is characterized like realistic in nature.

Components or Elements of Planning Elements of planning are the parts of planning that cannot be split. 1. Objectives Destinations of all activities are called objectives. Targets are also the destination points like objectives, but determined quantitative objectives for the specific certain time period are called targets. The objectives are the end and planning is its successive action. The objective is the foundation of planning. 2. Policies The principles guiding the decisions are called policies. In other words, policies mean the guiding principles, which specify the general limitations and line of direction. 3. Procedure Procedure implies the determination of the sequence of activities to accomplish business objectives. 4. Rules Rules mean a schedule which tells, what specific and certain activity is to be carried out in particular circumstances. 5. Programme Programme means the determination of the sequence of various activities of work. 6. Methods Methods mean specific ways of the performance of each activity or stage of procedures. 7. Budget Budget is a plan for estimating cost for executing any particular programme. 8. Time Schedule Deciding of time for every stage of the programme is called a time schedule. 9. Standards Standards mean yardsticks which are used as a basis to evaluate the work performed to be performed in future. 10. Strategies Strategies mean specific course of action that bring the business organization from the current situation to where the manager want to be.

Types of Planning 1. Strategic Planning Strategic plans are designed with the entire organization. Top-level managers will design and execute strategic plans. Essentially, strategic plans look ahead to where the organization wants to be in three, five, even ten years. Strategic plans, provided by toplevel managers, serve as the framework for lower-level planning. 2. Tactical Planning Tactical plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization. Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan. 3. Operational Planning Operational plans describe the day-to-day running of the company. Operational plans are often described as single use plans or ongoing plans. 4. Contingency Planning Contingency plans are made when something unexpected happens. Contingency planning is essential in moments when changes can’t be foreseen....