STEPS & PRINCIPLES IN PLANNING PRINCIPLES OF PLANNING Of late, some of the scholars in the field of management science like

Koontz, ODonnell, Weihrich, Lele and Mahajan have made a significant contributions in the form of providing some principles for the planning function. They are as follows. 1. Principle of the contribution to objectives: Every plan and its components should help in the achievement of organizational objectives, 2. Principle of the primacy of planning: Planning is considered as the first and the foremost function to be performed in the process of management. It is followed by other managerial functions like organizing, staffing, directing and controlling. 3. Principle of the pervasiveness of planning: Planning is all-pervasive and it percolates to all the levels of management from top to bottom. 4. Principle of the flexibility of planning: Every plan should be made in such a way that it adjusts and adapts itself to changes circumstances. There must be a high degree of flexibility in every good plan. 5. Principle of periodicity: Long-term plans, medium-term plans and short-term plans are to be integrated and interrelated in such a way as to achieve the organizational objectives effectively and economically. 6. Principle of planning premises: To develop consistent and coordinated plans, it is essential that planning be based upon carefully considered assumptions and predictions, known as planning premises. 7. Principle of efficiency of operations: Every plan should be designed with its components like objectives, strategies, policies, procedures, schedules, budgets, etc. to accomplish efficient realization of the plans. 8. Principle of limiting factors: There are various limiting factors like money, manpower, machinery, materials and management, which are to be taken into consideration while drafting a plan or taking a policy decision or devising a strategy. 9. Principle of revision: Every plan has to be executed, and in the execution, manager should check periodically the events and decisions, and if there is any necessity, to redraw and readjust their plan to achieve the organizational objectives. They should make provision for such changes. STEPS IN PLANNING There are various steps involved in planning. These are as follows: 1. Defining the problem. The manger has to identify and define the problems which may appear at a future date and which may require proper planning. 2. Establishing objectives. Every manger should clearly establish the objectives to be achieved by the enterprise. Every person belonging to the organization should be familiar with these. Major objectives must be clearly stated in realistic or specific terms. They will sere as a guide to action. Objectives must be specific, informative and functional. 3. Establishing the planning premises. Every plan has to be based on certain carefully considered assumptions and predictions, which are known as planning premises. A business organization has to provide for various environmental factors. Planning premises supply important facts and information relating to the future, and because of that, they are very significant to the success of planning. 4. Determining alternative course of action. The next step is to search for and examine alternative course of action. 5. Evaluation of alternative courses of action. Every alternative course of action has to be evaluated, and the relative importance of each one of them should be ascertained. Every alternative will have some strong and weak points, which are to be understood in the right perspective.

6. Selecting the course of action. After analyzing and evaluating the available alternatives, the manager has to select the best course of action. In fact, it is the real point of decision-making. 7. Formulating derivative plans. Every major plan has to be supported and developed by the preparation of other derivative plans. Within the framework of the basic plan, derivative plans are developed in each area of the business. The breakdown of the primary plan into departmental and sectional plans will strengthen the plan base of the organization. 8. Timing and sequence of operations. For every work, the manager has to prescribe the time frame, and within that, the work has to be started and completed. For smooth flow of work, it is better to maintain a sequence of operations. 9. Participation and follow-up. Each and every plan has to be communicated and explained in great detail to subordinates so that they are kept fully informed. It also helps in securing the cooperation and complete participation of the workers in executing the plans.