Planning is the first and primary function of business management. In this function, each individual is well defined with organizational goals and the resources of the organization are allocated to achieve these goals. In short words, it can be defined as “It involves the decision of what to do and how is it to be done.” Let’s go through the planning process to understand the importance and implementation for every business.
PLANNING PROCESS
Planning is an activity which involves various types of steps which are as follows:
- SETTING OBJECTIVES: This is the most important step which involves establishing the objectives for the whole organization and for each individual. Objectives can be long term and short term.
- DEVELOPING PREMISES: Planning is always done keeping in mind the future which is always uncertain. So, in order to compete with these uncertainties, we have to make some assumptions i.e. policies, existing plans and forecasting. It should be of two types i.e. Internal & External to deal with all internal and external affairs.
- IDENTIFYING ALTERNATIVES: Next step is to identify the various alternatives available to effectively manage the business. As we all know that, there is not a one way to achieve goals. So, there should be multiple choices. All these should be identified. There must be other options available to manage the business.
- EVALUATING ALTERNATIVE COURSE OF ACTION: In this step, all positive and negative aspects of every alternative to be evaluated to achieve the objectives. It should be examined properly.
- SELECTING BEST ONE ALTERNATIVE: The ideal plan is that which is the most profitable one with least negative aspects and adaptable to dynamics situations. So, we have to select the one best alternative.
- IMPLEMENT THE PLAN: This step comes when all other functions come into play and plan is put into action to achieve the desired goal. This step involves allocating the resources, organising for labour and purchase of machinery.
In Brief, Planning is very important and crucial step. So, Planning should be done properly to achieve the organization goals.