MANAGEMENT-PRINCIPLES-AND-ITS-APPLICATION

MANAGEMENT PRINCIPLES
AND ITS APPLICATION

TOPIC: planning
NAME: Yash Yadav
ROLL NUMBER: 24/51129
Bcom (Hons)
Planning: A Business
studies perspective
Planning is defined as the process of setting objectives for a
given time period, formulating various courses of action to
achieve them and then selecting the best possible alternative
from among the various courses of action available.
Steps Involved in Effective Planning: A Practical
Guide
Effective planning is a methodical process that involves a series of steps, each contributing to the overall effectiveness of the plan.
These steps provide a structured framework for translating vision into for translating vision into action, ensuring that all elements
are considered and addressed, ultimately leading to a well-defined plan that guides actions towards achieving desired outcomes.
Settting objectives:
Objectives may be set for the entire organization and each department or unit within the organization. They specify
what the organization wants to achieve.
Developing Premises:
Planning premises are the assumptions made about the future. Assumptions are made in the form of forecasts about
the demand for the product etc. Planning premises are base material upon which plans are to be drawn.
Identifying alternative courses of action:

As there may be many ways to achieve the objectives, all the alternative courses of action should be identified.
Evaluating alternative courses of action:

The positive and negative aspects (l.e., feasibility and consequences) of each alternative are evaluated.
Selecting an alternative:
- .
This is the real point of decision making The best plan would
,
be the most feasible profitable and with least negative
consequences .
Implementing the plan:

.
It means putting the plan into action This is the step where
.
other managerial functions also come into the picture This
step would also involve organising for labour and purchase of
machinery .
Follow up action:
which involves seeing that activities are performed according
.
to plans Monitoring the plans is equally important to ensure
that objectives are achieved.

Features of planning:
Planning focuses on achieving
objectives:
As specific goals are set out in the plans along with
activities to be undertaken to achieve the goals. Planning is futuristic:
As it involves looking ahead and preparing for the
future to meet future events effectively.
Planning involves decision making:
As it involves evaluation of each alternative course of
action and choosing the most appropriate one.
Planning is the primary function of
management:
As it lays down the basis for all other functions of
management.
Planning is a mental exercise:
Planning is an intellectual activity of thinking rather than doing.
It requires application of mind involving foresight, intelligent
imagination and sound judgement.
Planning is pervasive:
As it is required in all types of organizations, at all levels of
management and in all departments of an organization. Top
management undertakes planning for the whole organisation.
Middle management does the departmental planning. At the
lowest level, day-to-day operational planning is done by
supervisors.
Planning is continuous:
A plan is framed and implemented for a specific period of time
and is followed by another plan and so on.
Objectives of Planning: Setting the Course
Goal Clarity Resource Allocation Risk Mitigation Continuous

Planning helps define specific Planning facilitates the Planning involves identifying Improvement
and measurable goals, efficient allocation of potential risks and developing Planning encourages
ensuring everyone involved resources, including time, strategies to mitigate or avoid continuous evaluation and
understands the intended money, and personnel, by them, minimizing the improvement, allowing for
outcomes and can work identifying priorities and likelihood of unexpected adjustments to strategies and
collaboratively to achieve maximizing the utilization of setbacks and ensuring a tactics based on progress and
them. available assets. smoother path toward goals. feedback. This adaptability is
essential for staying on track
and achieving optimal results.
The Importance of Planning:
Provides direction:
Planning provides directions by stating in advance
how work is to be done; what action should be taken
and in which direction Reduces overlapping and wasteful
activities:
Planning reduces overlapping and wasteful activities
Establishes standards for by coordinating the activities of different divisions,
departments and individuals.
controlling:
Planning provides standards against which actual performance is
measured. By comparing actual performance with some standard,
managers can know if there is any deviation and take corrective Facilitates decision making:
action.
Planning facilitates decision making by making a
choice from among the alternative courses of action
Promotes innovative ideas: Reduces the risks of uncertainty:
Planning promotes innovative ideas requiring application By deciding in advance the task to be performed, planning
of mind and foresight. It is the most challenging activity for shows the way to deal with changes and uncertainty.
the management as it guides all future actions leading to Planning cannot eliminate changes/uncertainties but can
growth and prosperity of the business. anticipate them and develop managerial responses to
them.
The limitations of planning:
Planning leads to rigidity:
Once a well defined plan is drawn the managers may
,
not be in a position to change it This kind of rigidity

Planning is time consuming:
.
in plans may create difficulty .
sometimes not much time is left for its

implementation .
Planning may not work in a

dynamic environment:
as the organisation has to constantly adapt itself to
changes .
Planning involves huge costs:
in terms of time and money e g checking accuracy
, . .
of facts may require a lot of time The costs incurred

.
sometimes may not justify the benefits derived from

the plans.
Planning does not guarantee
success:
The success of an organisation is possible only when
plans are properly drawn up implemented and Planning reduces creativity:
translated into action Managers have a tendency to
. as it is mostly done by the top management rest of
;
rely on previously tried and tested successful plans

. the members just carry out orders and think on the
same lines as others They are neither allowed to
.
deviate from plans nor are they permitted to act on

their own Thus their initiative or creativity gets lost
. ,
or reduced .
Bibliography
MindTools. (n.d.). Project planning: Defining your goals and objectives. Retrieved from
https://www.mindtools.com/pages/article/newTMC 00.htm
Harvard Business Review. (2018). The importance of strategic planning. Retrieved from https://hbr.org/2018/05/the- Importance-
of-strategic-planning
Project Management Institute. (2020). The PMBOK ® guide: A guide to the project management body of knowledge Retrieved from
https://www.pmi.org/pmbok-guide-standards
American Planning Association. (n.d.). Introduction to planning. Retrieved from
https://www.planning.org/aboutplanning/ Mindset Works. (2021). Goal setting and planning for success. Retrieved from
https://www.mindsetworks.com/resources/goal-setting-planning/
Harvard Business School Online. (2020). Strategic planning basics. Retrieved from
https://online.hbs.edu/blog/post/strategic-planning-basics
Smartsheet. (n.d.). How to create a project plan. Retrieved from https://www.smartsheet.com/content/project-planning-guide
The Balance Careers. (2021). Setting objectives for effective planning. Retrieved from
https://www.thebalancecareers.com/setting-objectives-2275752
CIO. (2019). Why project planning is essential for project success. Retrieved from
https://www.cio.com/article/329357/why-project-planning-is-essential-for-project-success.html
MindTools. (n.d.). SWOT analysis: Discover new opportunities. Retrieved from
https://www.mindtools.com/pages/article/newTMC05.htm

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MANAGEMENT PRINCIPLES

AND ITS APPLICATION

Identifying alternative courses of action:

Evaluating alternative courses of action:

Implementing the plan:

step would also involve organising for labour and purchase of

that objectives are achieved.

Goal Clarity Resource Allocation Risk Mitigation Continuous

not be in a position to change it This kind of rigidity

in plans may create difficulty .

sometimes not much time is left for its

Planning may not work in a

of facts may require a lot of time The costs incurred

sometimes may not justify the benefits derived from

rely on previously tried and tested successful plans

deviate from plans nor are they permitted to act on

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