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Management Planning Process - Lesson Summary

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Term planning involves deciding the future course of action in advance. A manager has to plan what is to be done, where, how and by whom

There are six objectives of planning according to Benowitz, E.A.(2001)
Planning gives an organization a sense of direction
Focuses attention on objectives and results
Establishes a basis for teamwork
Helps anticipate problems and cope with change
Providing guidelines for decision making serves as a prerequisite to employing all other management functions.

The components of planning are usually classified as:
Objectives- The basics of every organization and the desired objectives aimed to achieve.
Policies- Made across all levels of management as a guide to channelize energies towards a particular strategy.
Procedures- These are guides for the routine activities carried out.
Programs: These outline an organization's policies, objectives, procedures, etc.
Budgets: These are quantitative statements that forecast the profit/income of an organization.
Strategies: These are established for long-term objectives, to select specific activities, and to allocate necessary resources.

There are different levels of planning, these are :
Corporate level
Business level
Operating level
Functional level

The characteristics of planning may be categorized as follows:
Planning is continuous
planning is flexible
planning ensures efficiency
planning is basic of function
planning is the key to decision making
planning is a future course of action
planning is goal-oriented
planning is an intellectual exercise
planning is an independent exercise
planning considers limiting factors
planning creates coordination
planning is the precision of actions

The scope of planning is dependent on:
Managing risk and uncertainty
Building teamwork and cooperation
creating quality of work
Better use of time frame
Resources

There are several factors that affects management plans, some limitations of planning are :
Planning creates rigidity
planning does not work in dynamic situations
planning reduces creativity
planning is a time-consuming process
planning does not ensure success
planning boosts a false sense of security

Traditional objective setting is an approach of planning in management practice. Objectives are set at the top level of the organization and then divided in sub units for each level of the organization.

The traditional objective setting has three main benefits:
Efficient use of resources
Prioritization of objective
Measurement of progress

There are different types of traditional objectives, they are:
Organizational objectives
financial objectives
strategic objectives
Defined/ stated objectives
real objectives

There are certain barriers that can lead to failures in the Traditional Objective Setting.
Lack of employees' understanding
Big Organisational Network
Cultural lag
Outdated objectives
Resource constraints

There are four important methods of planning in management. They are
Clarification of issues and problems-
For better clarification and understanding, there are techniques like
Brainstorming, SWOT Analysis, Problem Trees, Logical Framework Analysis, Force Field Analysis, Roleplay
Analysing Spatial and Inter- sectoral Relationship-
Analysing Spatial and Inter- sectoral Relationship includes the following techniques:
Maps and land use plans, Computerized simulations, models in economic geography
Socio-economic and environmental analysis-
Different techniques used for this kind of analysis are;
Social assessment, environmental assessment, benefit-cost analysis

Discuss the future

Strategic management is the process of decision making and planning which leads to the development of an effective strategy to assist with achieving an organization's goals.

Strategic management deals with making decisions about the future
Different departmental managers in an organization have different priorities
Strategic management involves major multifarious changes in the organization

Planning premises can be classified in different ways:
In view of the existing assumptions and prediction, premises may be of two types- internal and external
In view of the quantitative measurement, premises can be classified into two types- tangible and intangible
In view of the various forces and factors, premises may be of two types- constant and variable
In view of the exercising control over the planning premises, it can be classified into three types - fully controllable, partially controllable Absolutely non-controllable
planning premises involves various stages of processes ;
Study the probability of impact factors
Analyze the degree of impact factors
Development of alternatives

Forecasting has certain limitations. These are:
Balancing the benefit-cost for forecasting
No guarantee about future events
lack of proper judgment and skills
assumptions may be wrong