PPM Importance of Planning in An Organisation - An Analysis Planning

PPM
Importance of planning in an
organisation – An analysis
Planning
Definition: Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is it to be done,
how it is to be done and who is going to do it. It is an intellectual
process which lays down an organisation’s objectives and develops
various courses of action, by which the organisation can achieve those
objectives. It chalks out exactly, how to attain a specific goal.
Planning is nothing but thinking before the action takes place. It helps us
to take a peep into the future and decide in advance the way to deal with
the situations, which we are going to encounter in future. It involves logical
thinking and rational decision making.
Characteristics of Planning
1. Managerial function: Planning is a first and foremost managerial
function provides the base for other functions of the management, i.e.
organising, staffing, directing and controlling, as they are performed
within the periphery of the plans made.
2. Goal oriented: It focuses on defining the goals of the organisation,
identifying alternative courses of action and deciding the appropriate
action plan, which is to be undertaken for reaching the goals.
3. Pervasive: It is pervasive in the sense that it is present in all the
segments and is required at all the levels of the organisation.
Although the scope of planning varies at different levels and
departments.
4. Continuous Process: Plans are made for a specific term, say for a
month, quarter, year and so on. Once that period is over, new plans
are drawn, considering the organisation’s present and future
requirements and conditions. Therefore, it is an ongoing process, as
the plans are framed, executed and followed by another plan.
5. Intellectual Process: It is a mental exercise at it involves the
application of mind, to think, forecast, imagine intelligently and
innovate etc.
6. Futuristic: In the process of planning we take a sneak peek of the
future. It encompasses looking into the future, to analyse and predict
it so that the organisation can face future challenges effectively.
7. Decision making: Decisions are made regarding the choice of
alternative courses of action that can be undertaken to reach the
goal. The alternative chosen should be best among all, with the least
number of the negative and highest number of positive outcomes.
Planning is concerned with setting objectives, targets, and formulating plan

to accomplish them. The activity helps managers analyse the present
condition to identify the ways of attaining the desired position in
future. It is both, the need of the organisation and the responsibility of
managers.
Importance of Planning
 It helps managers to improve future performance, by establishing
objectives and selecting a course of action, for the benefit of the
organisation.
 It minimises risk and uncertainty, by looking ahead into the future.
 It facilitates the coordination of activities. Thus, reduces
overlapping among activities and eliminates unproductive work.
 It states in advance, what should be done in future, so it
provides direction for action.
 It uncovers and identifies future opportunities and threats.
 It sets out standards for controlling. It compares actual
performance with the standard performance and efforts are made to
correct the same.
Steps involved in Planning
Advantage of Planning are as follow:
1. Reduces Uncertainty
2. Focus on Objectives/Goals
3. Economical Operation
4. Facilitates Control
5. Encourages Innovation and Creativity
6. Improves Motivation
7. Avoids Random Activity
8. Improves Competitive Strength
9. Focuses attention on objectives and results
10. Establishes a basis for teamwork
11. Helps anticipate problems and cope with change
12. Better coordination
Disadvantage or Limitations of Planning are as follow
1. Lack of Reliable Data

2. Rigidity
3. Time Consuming Process
4. Costly Process
5. Rapid Change
6. Internal Inflexibility
7. External Inflexibility
8. Expensive
9. Resistance to Change
Types of Organizational Planning
Strategic
A strategic plan is the company’s big picture. It defines the company’s goals for a
set period of time, whether that’s one year or ten, and ensures that those goals align
with the company’s mission, vision, and values. Strategic planning usually
involves top managers, although some smaller companies choose to bring all of
their employees along when defining their mission, vision, and values.
Tactical
The tactical strategy describes how a company will implement its strategic plan. A
tactical plan is composed of several short-term goals, typically carried out within
one year, that support the strategic plan. Generally, it’s the responsibility of middle
managers to set and oversee tactical strategies, like planning and executing a
marketing campaign.
Operational
Operational plans encompass what needs to happen continually, on a day-to-day

basis, in order to execute tactical plans. Operational plans could include work
schedules, policies, rules, or regulations that set standards for employees, as well as
specific task assignments that relate to goals within the tactical strategy, such as a
protocol for documenting and addressing work absences.
Contingency
Contingency plans wait in the wings in case of a crisis or unforeseen event.

Contingency plans cover a range of possible scenarios and appropriate responses
for issues varying from personnel planning to advanced preparation for outside
occurrences that could negatively impact the business. Companies may have
contingency plans for things like how to respond to a natural disaster,
malfunctioning software, or the sudden departure of a C-level executive.
planning is an essential business activity of any progressive, successful and growing organisation. In
thinking about an organisation’s growth stability and development, the next generation of
leadership has to be continuously planned for and its’ future leaders prepared. Organisations that do
not plan for succession risk the chance of stagnating and miss opportunities to recruit, retain and
develop existing and new talent.
In today’s changing world with economic pressures, changing life demands, and individual
expectations, volunteer organisations will need to think of creative and supportive ways to recruit
and develop its’ future leaders. Clear visions, strategies and processes will support organisations
undertaking this challenging but vital task. We hope this resource has been useful in providing you
with useful information, guidance and tools and will be an ongoing reference in your succession
planning.

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PPM

Planning is concerned with setting objectives, targets, and formulating plan

Advantage of Planning are as follow:

Disadvantage or Limitations of Planning are as follow

1. Lack of Reliable Data

Types of Organizational Planning

Operational plans encompass what needs to happen continually, on a day-to-day

Contingency plans wait in the wings in case of a crisis or unforeseen event.

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