Some alternatives can be seen through, some may appear to be the most profitable and will be too expensive. All information relating to operations of the business should be collected in detail. According to Koontz and O’Donnell, “There is seldom a plan made for which reasonable alternatives do not exist. If the forecasts are accurate then planning will also be reliable. In some instances, plans are made for a year only while in others they span decades. Hence, the process of controlling is a critical part of any plan. An appropriate time schedule has to be prepared and detailed instructions are written for communication of the plan. Naturally, after the setting of objectives, what is required to be done is to secure required information from various sources. Project Planning Process Step #16: Determine all roles & responsibilities . and (iii) developing the basis for decisions and planning through systematic investigations. Subsequently, a career plan will help you capitalize on these and find a successful career path. Share Your Word File They are required to be balanced in the form of balance sheet. How to improve the processes should be also planned continuously. A course of action is determined according to the circumstances prevailing. A beginning should be made only after going through a detailed analysis of the new opportunity. Cost benefit analysis of each alternative must be made. Present and future opportunities must be found so that planning may be undertaken for them. Constructive approach can reveal the deficiencies and pinpoint weaknesses, particularly in relation with competition. This will help in the thorough analysis of the alternatives so developed. The planning process is different from one plan to another and varies from company to company. i. All secondary plans will be a part of the main plan. Planning is a combination of information handling and decision making systems. The graphic above and the next graphic provide an overview of the planning levels preceding production in the R/3 System. Similarly, products may be sold directly to the consumer by the company’s salesmen or through exclusive agencies. Planning is always for uncertain future. (ii) Is an entirely new plan necessary or is it sufficient to modify the existing plan? These are necessary to achieve the objectives within the specified period. Budgets are expressions of expectations in numerical terms. Outline the planning and controlling processes. The moment there appears to be changes in the assumptions on which the plans are based; there should be corresponding changes in the plans also. These answers will facilitate formulation of practical and realistic plans. It implies a calculation of how certain factors will behave in future. This further includes identification of problems to which solutions are to be provided and the opportunities that can be grabbed to make use of. There should be a system of follow-up. A good planner must consider combination of all possible limitations and make provision for them. Hence, the success of the planning depends very much upon the forecasts. Planning is a process, which embraces a number of steps to be taken. Working from the top … Evaluation will involve the study of performance of various actions. Organisational goals provide direction to and control the objectives of subordinate departments. The last step in the planning process should be to pull all of the notes together into one formal document. Formulation of Supporting Plan 8. The worst decision is ‘to decide not to decide.’. Identification of Alternatives 5. Plans are prepared with a view to achieve certain goals. Planning involves looking into the future which necessitates the enterprise to know, how future conditions will affect its activities. Such an evaluation must be made at the earliest possible opportunity so that adequate controlling is resorted to for ensuring achievement of planned goals. Everything you need to know about the steps involved in planning process. Budgets are generally financial, though they may be expressed in other terms also such as labour hours. For a socio-economic system, the only vehicle for change (adaptation or innovation) is the business planning and decision making process as described above. There is seldom a plan for which reasonable alternatives do not exit, and quite often an alternative that is not obvious proves to be the best. Within the framework of a basic plan, derivative plans are formulated in each functional area. Usually, alternative plans are evaluated against factors such as cost, risks, benefits, organizational facilities, etc. Adjustments and Follow Up of Plan. The product planning process begins with an idea. The different steps involved in process planning are: 1. Keeping the general economic conditions in mind, a study of the industry is made. Determination of crystal clear objectives is the first step in planning. Past information related to past objectives, courses of action being adopted, its effect and probability of achievement of objectives that can assess the effectiveness of current courses of action. It is necessary to clearly ascertain the areas requiring improvement for which planning is to be visualised. 7. Welcome to EconomicsDiscussion.net! There are a number of ways of doing a thing. The process/steps of human resource planning are as follows: Understanding goals and plans of the Organization; Assessment of current Human Resources Situation; Human Resource Forecasting (Demand and Supply) Implementation of the program (Action plan) Evaluation and Feedback (Audit and Adjustment) Human Resource Planning Process . They analyze current state and have a preliminary look at possible future opportunities. On the basis of the objectives of the organisation and the limitations of planning, alternative courses of doing a particular work can be discovered. Goal setting: Plans are the means to achieve certain ends or objec­tives. Financial Planning Process Step 1: Establish the Goal / Relationship Establishing the goal or relationship is where the adviser introduces himself or herself a client or prospective client and explains the financial planning process. Step 1: Identify Project Stakeholders Start your project planning … In developing these derivative plans, lower-level managers take steps similar to those taken by upper-level managers – selecting realistic goals, assessing their subunits’ particular strength and weaknesses and analyzing those parts of the environment that can affect them. TOS4. Content Guidelines 2. Once the organisation’s objectives are determined, the section-wise or department-wise objectives are planned at the lower level. (d) The supply of labour, raw materials etc. Budgets provide meaning to plans. Throughout the planning process, premises must be monitored and updated. Prices and wage rates can also be forecast. Koontz and O’Donnell state: “There is seldom a plan made for which reasonable alternatives do not exist.” Therefore, managers should search for and examine alternative courses of action. Determining alternative courses is the third step in the planning process. Examination of Alternative Courses of Action: An action may be performed in many ways but a particular way is most suitable to the organisation. vi. Plans are blue prints of what is to be done, how is to be done, who has to do etc. Without bud­gets, plans cannot be executed; they become paper exer­cise. Objectives should clearly define as to what is to be achieved by policies, procedures, rules, strategies, budgets and programmes. Share Your PPT File, Features of Management: Top 17 Features of Management, Planning Process: 11 Important Steps of Planning in Organisations, Steps Involved in Planning Process – According to Koontz and O’Donnell, Steps Involved in Planning Process – 7 Important Steps which Differs from Organization to Organization, Steps Involved in Planning Process – 8 Steps (Ranging from Determining the Problem to Follow-Up Action), Steps Involved in Planning Process – 8 Steps in the Planning Process in Management, Steps Involved in Planning Process – Setting Objectives, Developing Premises, Identifying Alternative Courses of Action, Evaluating Alternative Courses and a Few Others, Steps Involved in Planning Process – Some Important Steps to be Followed by all Types of Companies for Having a Comprehensive Planning for Execution, Steps Involved in Planning Process – 8+ Major Steps, Steps Involved in Planning Process – Planning Process which may be Treated as Commonly Acceptable. Sometimes, the manager may de­cide to follow many viable, feasible or sufficient realistic courses rather than the one best course. Various factors such as profitability, investment requirements, etc., of such alternatives should be weighed against each other. Control process is very easy if the objectives are clearly defined. Moreover, before weighing alternatives and reaching a decision, one is wise to search for alternatives that may not be immediately apparent. But, every organisation has to prepare the plan according to the changing trends in the external environment. Forecasting means the assumption of and the anticipation of certain events. For example, once a basic plan of sales is decided upon, a number of secondary plans could be prepared. Once the plan has been formulated, its broad goals must be translated into day-to-day operations of the organization. Define a High-Level Vision. If no gap is found from the above analysis (step six), there is hardly any problem. Planning means thinking in advance. Forecasts will generally be made for the following: (a) The expectation of demand for the products. Organizational objectives provide a general direction, objectives of departments will be more planned and detailed. Establishing Objectives 3. Plans should reflect the enterprise’s objectives. The objectives fixed must clearly indicate wha… Establishing Objectives 3. Plans and subsidiary plans are first used on trial basis to the possibility of their success. Establishing Sequence of Activities. There is however, one problem which confronts us while analysing these alternative courses. what exactly is to be accomplished? Premises encompass the expected environment of plans in operation. Normally, managers will select the alterna­tive that, in their judgement, will best enable the firm to accomplish its goals. Planning determines the future course of action for utilising various resources in a best possible way. Determining Alternative Courses 5. Planning is a process, which embraces a number of steps to be taken. Since future environments are so complex and uncertain; it would not be realistic to make assumptions in great details about every environmental factor. To get co-operation in imple­mentation, subordinates should be associated in the planning process. Following a career planning process will enable you to discover your professional strengths. After having decided the chief plan and the subsidiary plans, they are to be implemented. The strategic planning process helps an organization fill the gap between its current state and the desired state. The fifth and most important step in planning process is evaluation and selection of the optimum plan. Analysis and interpretation of data facilitate in determining the enterprise objectives. Let us now briefly view the steps generally involved in the planning activity. Obviously, it is foolish to let a plan run its course without monitoring its progress. Techniques of decision-making are applied to choose a particular course of action. At this step of the strategic planning process, managers are faced with the question of whether a new strategy is required and, if so, what kind of strategy it will be. It is advisable to limit premising to those factors which are critical or strategic to the planning process. It is a combination of information handling and decision making systems based on information inputs, outputs and a feedback loop. Follow up or feedback mechanism is an attempt to determine whether the plan has achieved the desired results. This involves putting the plans into action so as to achieve the business objectives Implementation of plans requires establishment of policies, procedures, standards, budgets, etc. Therefore, the management may decide to select two or more alternatives and combine them to have most feasible plan. These plans are meant for the implementation of the main plan. Doing the ground work Page14 What is planning? The continuous evaluation of planning is also necessary. In other words, it is decided as to who will do a particular job and at what time. It requires managers to keep a careful eye on plan progress and results. Before publishing your Articles on this site, please read the following pages: 1. The steps are: 1. Following steps are taken in planning process: 1. It is exactly the point at which decisions are made. For Example—for effective operation of the basic production plan, a number of secondary plans for purchasing basic production plan, a number of secondary plans for purchasing of raw materials acquisition of plan and machinery, training of workers arranging for adequate finance, etc., have to be prepared for the successful operation of the basic plan. Whether you’re planning your business’s opening, its growth, its projects, its risk mitigation, its sale, its closing, or anything else, all planning begins with a … The ultimate objective of the plan is to achieve certain objectives, results or goals. Constraints such as Governmental control will also exist. It should also show some decision points or paths during this process for instance criteria for special procedural steps or competitions. Welcome to the Planning Process -ERP PP page. Future in form at in is nothing but logical anticipation of near as well as distant future. After selecting the best course of action, the management has to formulate the secondary plans to support the basic plan. Finally, the manager should draft a final plan in definite terms. Implementation means that resources are committed and employees act. Changes in the environment and the organisation subvert even the best plans. 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