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Principles of Planning
Planing is a dynamic process, it is very essential for every organisation to achieve their ultimate
goals, but, there are certain principles which are essential to be followed so as to formulate a
sound plan....
Importance of Planning
1.
Planning increases the organization's ability to adapt to future eventualities: The future
is generally uncertain and things are likely to change with the passage of time. The uncertainty
is augmented with an increase in the time dimension. With such a rise in uncertainty there is
generally a corresponding increase in the alternative courses of action from which a selection
must be made. The planning activity provides a systematic approach to the consideration of
such future uncertainties and eventualities and the planning of activities in terms of what is
likely to happen.
2.
Planning helps crystallize objectives: The first step in planning is to fix objectives which
will give direction to the activities to be performed. This step focuses attention on the iesults
desired. A proper definition and integration of overall and departmental objectives would result
in more co-ordinated inter-departmental activities and a greater chance of attaining the overall
objectives.
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Planning helps the company to remain more competitive in its industry: Planning may
suggest the addition of a new line of products, changes in the methods of operation, a better
identification of customer needs and segmentation and timely expansion of plant capacity all of
which render the company better fitted to meet the inroads of competition.
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Planning makes control easier: The crystallization of objectives and goals simplify and
highlight the controls required.
9.
Planning enables the identification of future problems and makes it possible to provide for
such contingencies.
10.
Planning can help the organization secure a better position or standing: Adequate
planning would stimulate improvements in terms of the opportunities available.
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Planning increases the effectiveness of a manager: As his goals are made clearer,
adequate planning would help the manager in deciding upon the most appropriate act.
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Principles of Planning
A good plan today is better than a perfect plan tomorrow.
1.
Principle of Contribution: The purpose of planning is to ensure the effective and efficient
achievement of corporate objectives, in-fact, the basic criteria for the formulation of plans are to
achieve the ultimate Objectives of the company. The accomplishment of the objectives always
depends on the soundness of plans and the adequate amount of contribution of company
towards the same.
2.
Principle of Sound and Consistent Premising: Premises are the assumptions regarding
the environmental forces like economic and market conditions, social, political, legal and
cultural aspects, competitors actions, etc. These are prevalent during the period of the
implementation of plans. Hence, Plans are made on the basis of premises accordingly, and the
future of the company depends on the soundness of plans they make so as to face the state of
premises.
3.
Principle of Limiting factors : The limiting factors are the lack of motivated employees,
shortage of trained personnel, shortage of capital funds, government policy of price regulation,
etc. The company requires to monitor all these factors and need to tackle the same in an
efficient way so as to make a smooth way for the achievement of its ultimate objectives.
4.
5.
Principle of Coordinated Planning: Long and short-range plans should be coordinated with
one another to form an integrated plan, this is possible only when latter are derived from the
former. Implementation of the long-range plan is regarded as contributing to the implementation
of the short-range plan. functional plans of the company too should contribute to all others
plans i.e. implementation of one plan should contribute to all the other plans, this is possible
only when all plans are consistent with one another and are viewed as parts of an integrated
corporate plan.
6.
Principle of Timing: Number of major and minor plans of the organisation should be
arranged in a systematic manner. The plans should be arranged in a time hierarchy, initiation
and completion of those plans should be clearly determined.
7.
Principle of Efficiency: Cost of planning constitute human, physical and financial resources
for their formulation and implementation as well. Minimizing the cost and achieving the efficient
utilization of resources shall has to be the aim of the plans. Cost of plan formulation and
implementation, in any case, should not exceed the organisations output's monetary value.
Employee satisfaction and development, and social standing of the organisation are supposed
to be considered while calculating the cost and benefits of plan.
8.
Principle of Flexibility: Plans are supposed to be flexible to favour the organisation to copeup with the unexpected environments. It is always required to keep in mind that future will be
different in actuality. Hence companies, therefore, require to prepare contingency plans which
may be put into operation in response to the situations.
9.
Principle of Navigational Change: Since the environment is always not the same as
predicted, plans should be reviewed periodically. This may require changes in strategies,
objectives, policies and programmes of the organisation. The management should take all the
necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of
the organisation.
10.
Planning Definition
"Planning bridges the gap from where we are to where we
want to go. It makes it possible for things to occur which
would not otherwise happen"
- Koontz and O'Donnel.
Importance of Planning
Planning Definition
"Planning bridges the gap from where we are to where we
want to go. It makes it possible for things to occur which
would not otherwise happen"
- Koontz and O'Donnel.
Importance of Planning
Features of planning
Planning is pervasive
Planning is continuous
Planning is futuristic
Features of planning
Planning is pervasive
Planning is continuous
Planning is futuristic
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Types of Plans
Objectives: Objectives are very basic to the organisation and they are defined as ends which the
management seeks to achieve by its operations.They serve as a guide for overall business planning.
Strategy: strategy is a comprehensive plan for accomplishing an organisation objectives. This
comprehensive plan will include three dimensions,
(a) determining long term objectives,
(b) adopting a particular course of action, and
(c) allocating resources necessary to achieve the objective.
Policy: They are guides to managerial action and decisions in the implementation of strategy.
Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified
steps to be followed in particular circumstances.
Method: Methods provide the prescribed ways or manner in which a task has to be performed
considering the objective. It deals with a task comprising one step of a procedure and specifies how
this step is to be performed.
Rule: Rules are specific statements that inform what is to be done. They do not allow for any
flexibility or discretion.
Programme: Programmes are detailed statements about a project which outlines the objectives,
policies, procedures, rules, tasks, human and physical resources required and the budget to
implement any course of action.
Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument
in many organisations.
Also See:
Functions of Management
Principles of Management
Principles of Planning
Principles of Planning : Planing is a dynamic process, it is very essential for every organisation
to achieve their ultimate goals, but, there are certain principles which are essential to be
followed so as to formulate a sound plan.
Principles of Organizing
Principles of Organizing; Organizing can be effective only if managers follow some guiding
principles in order to make important decisions and act upon them.
Principles of Directing
Direction is always a complicated task as it involves dealing with employees of different kind. A
manager can become successful in the skill of efficient direction by learning and practicing the
basics of direction.
Principles of Staffing
Principles of Staffing; Staffing process of management assists in obtaining the right talent and
also nurturing it. Staffing principles which are universally accepted are not present.
Principles of Controlling
Principles of controlling; Controlling is a procedure of ensuring that satisfactory progress has
been made in accordance with the plans and noting down the experience benefited for
achieving forth coming goals.
Importance of Planning
Importance of Planning
The importance of the planning function should have be clear to you. We can outline the
importance of planning function as follows:
Provides Direction: Planning provides a clear sense of direction to the activities of the
organization and to the job behavior of managers and others. It strengthens their confidence
in understanding where the organization is heading and what for, how best to make the
organization move along the chosen path, and when should they take what measures to
achieve the goals of the organization.
Provides opportunity to analyze alternative courses of action: Another source of
importance of planning is that it permits managers to examine and analyze alternative
course of action with a better understanding of their likely consequences. If managers have
an enhanced awareness of the possible future effects of alternative courses of action, for
making a decision or for taking any action, they will be able to exercise judgment and
proceed cautiously to choose the most feasible and favorable course of action.
Reduces uncertainties: Planning forces managers to shake off their inertia and insular
outlook; it induces them to look beyond those noses, beyond today and tomorrow, and
beyond immediate concerns. It encourages them to probe and cut through complexities and
uncertainties of the environment and to gain control over the elements of change.
Minimizes impulsive and arbitrary decisions: Planning tends to minimize the incidence of
impulsive and arbitrary decisions and ad hoc actions; it obviates exclusive dependence on
the mercies of luck and chance elements; it reduces the probability of major errors and
failures in managerial actions. It injects a measure of discipline in managerial thinking and
organizational action. It improves the capability of the organization to assume calculated
risks. It increases the freedom and flexibility of managers withing well-defined limits.
King-pin function: As stated earlier, planning is a prime managerial function which provides
the basis for the other managerial functions. The organizational structure of task and
authority roles is built around organizational plans. The functions of motivation, supervision,
leadership and communication are addressed to implementation of plans and achievement
of organizational objectives. Managerial control is meaningless without managerial
planning. Thus, planning is the king-pin function around which other functions are designed.
Resource Allocation: Planning is means of judicious allocation of strategic and scarce
resources of the organization in the best possible manner for achieving strategic goals of the
organization. The strategic resources include funds, highly competent executives,
technological talent, good contacts with government, exclusive dealer network and so on. If
the organization enjoys a distinct advantage in possession of such resources, a careful
planning is essential to allocate them into those lines which would strengthen the overall
competitive position of the organization.
Resource use efficiency: For an ongoing organization, planning contributes towards a
more efficient functioning of the various work units. There is better utilization of the
organization's existing assets, resources and capabilities. It prompts managers to close
gaps, to plug loopholes, to rectify deficiencies, to reduce wastage and leakages of funds,
materials, human efforts and skills so as to bring about an overall improvement in resource
use efficiency.
Adaptive responses: Planning tends to improve the ability of the organization to effectively
adapt and adjust its activities and directions in response to the changes taking place in the
external environment. An adaptive behavior on the part of the organization is essential for its
survival as an independent entity. For a business organization, for example, adaptive
behavior is critical in technology, markets, products and so on.
Anticipative action: While adaptation is a behavior in reaction and response to some
changes in the outside world, it is not enough in some situations. In recognition of this fact,
planning stimulates management to act, to take hold initiatives, to anticipate crises and
threats and to ward them off, to perceive and seize opportunities ahead of other
competitions, and to gain a competitive lead over others. For the purpose, some enterprises
establish environmental scanning mechanism as part of their planning systems. Thereby
such enterprises are able to direct and control change, instead of being directed and
controlled by the pervasive external forces of change.
Integration: Planning is an important process to bring about effective integration of the
diverse decisions and activities of the managers not only at a point of time but also over a
period of time. It is by reference to the framework provided by planning that managers make
major decisions on organizational activities, in an internally consistent manner.
Strategic education plans keep taxpayers in the loop about learning initiatives
Instructions
1.
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3
Move on to a section called "Declarations." Prepare a list of statements
reflecting the district's beliefs about what conditions are necessary for
learning. For example, a declaration might be, "Students learn best when
actively engaged in the learning process."
4
Call the next section "Key Strategies." Write one goal at the top of the
page. Underneath it, write objectives for achieving the goal. For example,
an objective for a goal to intensify academic challenges might be to have
90 percent of students pass standardized literacy tests. Write objectives for
all goals identified in the report's introduction. Provide details for
accomplishing each objective. In this section, a strategy might be to design
new reading programs that enhance scores on reading comprehension
tests.
5
Start a new section called "Measuring Progress." List daily assessment
tools teachers use to gauge student progress and explain how often
assessments are given. For example, a measurement of success in sixthgrade English classes might be that all students scored in the top
percentile on weekly comprehension tests administered from October
through November.
6
Conclude the strategic plan with a page of "Credits." List the names of
teachers, staff and parents who helped prepare the report. Identify the
office that produced the final version and tell readers whom they should
contact for more information.
A school's strategic plan is the school's road map for the next several years. The school
board, superintendent and school administrators spend months or even longer on a
strategic plan. The document goes through several writing, approval and revision cycles.
The strategic plan includes objectives and the planned means to both meet those objectives
and measure success. The goals are usually academic performance goals, financial goals
and plans for school grounds and buildings. The strategic plan usually covers several
years.
Instructions
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1
Write down goals for the school in a brainstorming session. Number the
goals from the most important to the least pressing or important. For
example, if the high school is overcrowded, building a new high school
might be the highest goal while something like raising language arts
grades might be last.
2
Write an introduction discussing these goals. Specify how your school will
achieve them. point out any needed changes, like cutting the budget in
other areas to pay for a new building.
3
Write the next section, called "Declarations." This is a list of statements
oulining how the school feels about the best conditions for learning.
4
Name the next section "Key Strategies." In this section, write a goal and
underneath write how you plan on reaching that goal. In this section, write
at length about how you plan on achieving each goal.
Write a section called "Measuring Progress" which lists daily goals and
tools teachers use in the classroom to measure success.
Write "Credits" as the final section. Use this section to list any teachers,
administrators or others that helped prepare the report.
Instructions
1.
Put together a team that represents all departments within your business.
Depending on the size of the business, strategic planning teams should not
exceed eight people.
avaya.com/Collaborate&Grow
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3
Create a list of short-term goals. These goals can include increasing the
number of employees, moving to a larger space, increasing customer
4
Create a list of long-term goals. These goals are to be met within a 5-year
time period and can include increasing sales by a certain percentage,
creating new goods and services, implementing new procedures or
operational tasks, company expansion or, in some cases, downsizing. Longterm goals may be implemented in phases (for example, if you want to
expand your company, leasing new warehouse space, hiring additional
employees or introducing new products may be completed over the span of
5 years).
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Set measurable goals and time limits to meet these goals. These are shortand long-term goals that can be measured through increased production,
increased sales or increased customer interest. Measurable goals help keep
employees motivated and allow team members to make changes if goals
are not met at a predetermined time.
6
Outline possible ways to meet both short- and long-term goals. Brainstorm
with team members for new ideas and concepts. Even though some ideas
will not be used, brainstorming is the best way to involve every department
within the company. Make sure every member of the team is allowed to
contribute to brainstorming sessions.
7
Put vision and mission statements, short- and long-term goals, and ways to
meet these goals into a report that also includes budgets, financial forecasts
and other overhead information. This is your 5-year strategic plan.
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History
o
extends from the TAM concept. George Albert Smith Jr. and C. Roland
Christiensen from Harvard Business School are credited with the acronym
during the 1950s and 1960s to evaluate gaps and resources within companies
as an organizational strategy. The SWOT concepts were refined over the years
to become one of today's marketing tools.
Significance
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Features
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Considerations
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so that an action plan can be prepared. Other tools such as Porter's Five Force
analysis can supplement information in a SWOT.
Misconceptions
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Definition
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Function
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Benefits
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One of the benefits to having strategic planners is that they help the
organization develop goals and stay on the right path, as well as identify action
plans for implementing the strategy. Strategic planners calculate how long the
strategy will take to execute, and perform financial projections to determine how
profitable the strategy will be in the end
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Strengths
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The "S" in SWOT stands for strengths, internal factors that are favorable
to achieving the desired outcome. Strengths may include product patents,
trade secrets, exclusive access to resources and company reputation.
Weaknesses
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The "W" in SWOT stands for weaknesses, internal factors that may
interfere with achieving the desired result, including high overhead, lack of
supplier relationships and poor reputation.
Opportunities
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The "O" in SWOT stands for Opportunities; these are external factors that
may help in reaching the desired outcome, including new technologies,
increased customer demand and loosened regulations.
Threats
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The "T" in SWOT stands for threats, external factors that may hinder the
achievement of the desired goal; these include changes in customer
preferences, intense competition in a particular market and governmental
regulations.
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1.
Advantage: Clarity
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Advantage: Cost
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