Discuss the steps involved in Planning Function.

Planning function of management involves following steps:-

1. Establishment of Objectives

Planning requires a systematic approach. Planning starts with the setting of goals and objectives to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. Hence objectives should be practical, acceptable, workable and achievable.

2. Establishment of Planning Premises

Planning premises are the assumptions about the lively shape of events in future. They serve as a basis of planning. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. Establishment of planning premises is concerned to take such steps that avoid obstacles to a great extent. Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management among others whereas external includes socio- economic, political and economical changes. Internal premises are controllable whereas external are non- controllable.

3. Choice of alternative course of action

When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before.

4. Formulation of Derivative Plans

Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Secondary plans will flow from the basic plan. These are meant to support and expedite the achievement of basic plans. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization. Derivative plans indicate time schedule and sequence of accomplishing various tasks.

5. Securing Co-operation

After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence by seeking co-operation in order to continue supporting the plans.

6. Follow up/Appraisal of Plans

After choosing a particular course of action, it is put into action. After the selected plan is implemented, it is important to evaluate its effectiveness. This is done on the basis of feedback or information received from departments or persons concerned. This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.

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marto answered the question on March 4, 2019 at 07:34