5 Vital steps of Planning

PlanningWhat is planning? Planning means looking forward into future and access the course of action to reach the organizational objectives.What is the need of planning? It helps us to cope up with the change, forecast the future, specially to reach the established goals. Since planning plays major role in the development of an organization, manager should prepare a planning strategy which enlightens the organizational goals. It is the fundamental process in an organization.https://i0.wp.com/penningtonhennessy.com/Portals/31360/images/figure_building_plan_from_blocks.jpg

 

For example, we plan our day , we plan our trips, we plan our careers, we plan everything. Planning plays vital role not only in the development of an individual but also in the Organizational growth.

Organization often fails in reaching its objectives due to lack of planning, but not because of lack of resources. Planning means looking forward into future, predicting future’s action, analyzing the changes accordingly move with the course of action to reach the prescribed objectives.

Here are five important steps to be followed to prepare a planning strategy

  • ESTABLISH ORGANIZATIONAL GOALS
  • DECIDE THE PLANNING PERIOD
  • ESTABLISH THE PLANNING PREMISES
  • ANALYZE THE CHANGES AND PROVIDE CHANGE OF COURSE OF ACTION
  • IMPLEMENTATION AND INSPECTION

1.ESTABLISH ORGANIZATIONAL GOALS:

It is the fundamental entity in the planning process. Analyze the organizational policies, procedures and requirements accordingly set the objectives. Mainly there are three  procedural categories to develop goals of the organization.

1. Organizational objectives – Here, the main objective is to attain economical growth. It can be in terms of numbers of branches established, number of employees working in the organization and profit in terms of money.

2. Social objectives– Here, the objective of an organization is to provide growth environment to the society as it uses the resources from the society. It can be providing employment opportunities and services to the society. It tries to create healthy and safe environment to the society as it is their social responsibility.

For example, providing health care services at free of cost, providing funds to the social welfare organizations etc..,

3. Cultural objectives  Here, this concerns the employee benefits as the major resource of the organization is human resources. The organization sets the objective which benefits their employees.

For example, providing extra bonus, remuneration benefits, food coupons etc..,

2.DECIDE THE PLANNING PERIOD

Here we decide the time frame to accomplish the established goals.What is the need of it??For economic development of an organization time constraint is very essential.

For example ,The value of money has changed from year to year and lot of differences in the economy has been raised. 10 years back a chocolate can be at a rate of 1 rupee ,but now it costs 10 rupees.As the time passes the value of money changes.

Since time plays major role in the economic development, there should be a time plan before which the project should be completed.

Basically there are two types of plans. They are

Long term plans– Here organization forecast the future action for long period of years.Generally, higher level managers will do long term planning as they had broad vision of organizational objectives.

Short term plans – Here organization develops the planning period for short period of days or months.Generally short term planning will be done by the low level managers.

3.Establish the planning premises

As these plan operate in the future, there should be some planning assumptions or premises in which we are going to operate.

Basically there are two types of premises 

  1. Internal premises
  2. External premises

1.Internal premises– This includes sales forecast, policies, procedures ,skills, attitudes and beliefs of the people, the resource of the organization.

2.External premises This includes all factors in the outside environment which affect the organizational growth.

  • Political changes
  • Government policies,rules, procedures
  • Economic conditions
  • Degree of competences
  • Business environment
  • Sociocultural changes

Effective making of appropriate assumptions helps to develop an effective plan.Here we have to predict the changes that can occur in future.

4.Analyze changes and provide course of action.

Once the goals has been set and planning period is decided, this is one of the vital steps of planning process.Here we predict and analyze the changes that can destroy the plan.

For example,there could be change of political and government policies can happen if there is change of government. So it can affect the organization in one way or the other.

There are many factors that affect the plan and growth of the organization. They are

  • Political factors
  • External competencies
  • Internal changes
  • Cultural changes,etc..,

Analyze all the factors and provide the plan of action that has to be followed by the employees of the organization.

5.Implementation and inspection

Success of plan is measured by the result when it is implemented. This is final and most vital part of planning.This is to operate the business plan effectively and improvise the work plan as and when required.

Here every individual in the organization get to know the each step of planning and the course of action for the effective implementation of the plan so as to achieve the goals.Later continuous inspection and reviews can be needed for its growth stage.

For example ,A company expect a sale hike of 10%in its sales forecast. It review the sales every week or month to know whether the plan was going as it was or is there any need of change. When it reaches the final stage, it compares the result with its estimated plan. That is how the implementation and review can be done effectively.

So, finally follow these steps if you are going to plan a business or to start an organization. I hope this article will help you.

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