Mastering the Principles of Management: A Comprehensive Guide to Planning

Management

Management is the process of getting things done with the aim of achieving goals ‘Effectively’ & ‘Efficiently’ 

It is a Process of Effectiveness and Efficiency which involves a series of inter related function like doing the right task and achieving goals on time and also doing the task correctly with minimum cost.

1. Effectiveness achieves the goal within time.
2. Efficiency is optimum use of resource to achieve the goals.

Management should be both effective and efficient. For example, furniture of factory.

Planning 

Planning is the process of setting objectives for a given period, formulating various courses of action to achieve them and then selecting the best possible alternative from among the various courses of action available. In simple word, A good planning is half work done.

Current Status (where we are now) and planning bridges the gap for future stage (where we want to go).

1. Setting objective for a given time period.
2. Selecting best possible alternative
3. Formulating various courses of action to achieve them.

Features or Nature or Characteristics of planning

1. It focuses on achieving objectives 
2. It is a primary function of management
3. It is pervasive
4. It is continuous 
5. It is futuristic
6. It involves decision making
7. It is a mental exercise

Importance of planning

1. It provides directions
2. Planning reduces the risks of uncertainty
3. Planning reduces overlapping and wasteful activities
4. Planning promotes innovation ideas
5. Planning facilitates decision making
6. Planning establishes standards for controlling

Limitations of planning

1. Planning leads to rigidity
2. Planning may not work in a dynamic environment
3. Planning reduce creativity
4. Planning involves huge costs
5. Planning is a time-consuming process
6. Planning does not guarantee success.

External limitations of planning

1. Natural calamities
2. Changes in government policies
3. Strategies of competitors
4. Technological changes
5. Changes in fashion, taste etc.

Steps in planning process

1. Step 1 – Setting objective
2. Step 2 – Developing premises
3. Step 3 – Identifying alternative course of action
4. Step 4 – Evaluating alternative course
5. Step 5 – Selecting an alternative
6. Step 6 – Implement the plan 
7. Step 7 – Follow up Action

Type of plan process

1. Objective (Neither single use plan nor standing plan) -  objective are the ends which the management seeks to achieve within a given time period by its operations. It represents the end point of planning. Usually set by top management. It defines the future the organization aim to achieve should be expressed in specific terms (quantitative term) for example – Car company – Sales 1 year – 30% increase.
2. Strategy (Neither single plan nor standing plan) -  strategy is a comprehensive plan for accomplishing an organization objective. Features of strategy to formulated by top management due to its relative importance and also formulated after considering both internal and external environment. It is dynamic and it depends on ever changing business environment. It provides guidelines for thinking and action. For example – Jio launch – Free Sim, Free data.
3. Policies (Standing plan) – Are the general statements that guide thinking or channelise energy towards a particular direction. Policies are derived from objectives. Policies provide a basis for interpreting strategy. They are guide to managerial action and decision in the implementation of strategy. Policies pre-decide some issue, avoid confusion and it becomes easier to resolve problems or issues. For example – policy not employee person who is less than 18-year-old.
4. Procedures (Standing plan) – chronological sequence of various steps to be taken in order to perform an activity in an efficient manner. A procedure is generally established for repetitive activity, so that same steps are followed, whenever that activity is performed. Policies and procedure are related to each other as procedure are steps to be carried out within a board policy framework. Procedure is rigid. For example – enterprise may follow procedure for purchase of goods.
5. Method (Standing plan) – Is a prescribed process in which a particular operation or an activity is performed considering the objective of the organization. Selection of proper method saves time, money and effort and increase efficiency. For imparting training to employee at various levels, different method can be adopted should be stated in clear and precise term. For example – different method available for valuation of stock – FIFO, LIFO & HIFO.
6. Rules (standing plan) – Specific statements that inform what is to be done. Rule is managerial decision that certain action must or must not be taken. Rules are rigid and demand strict compliance. Simplest plan, no compromise or change unless a policy decision is taken. For example – no smoking in factory.
7. Programme (single use plan) – is a detailed statement about a project which outlines the objectives, policies, procedure, rules, tasks, human and physical resources required and the budget to implement any course of action. It gives a step-by-step approach to guide the action necessary to reach pre-determined goal. For example – production programme, training programme, promotion programme, conference, seminar.
8. Budget (Single use plan) – Is a statement of expected result expressed in numerical terms over s specific period of time. It is a plan which quantifies future facts and figures. Budget is expressed in numerical terms; it becomes easier to compare actual figures with expected figures and take corrective action subsequently. Budget is also a control device for example – sale budget, production budget, cash budget, government budget etc.

Classification of plan

Plan is a document showing detailed scheme, program and strategy worked out in advance for fulfilling an objective of Single use plans and Standing plans

1. Single use plans – one time plan which is specifically designed to achieve a particular goal. For example, budget for handling non-recurring problem. Plan includes budget, programme and projects. It also known as ‘Specific plan’ as they are formulated to fit the specific situation.
2. Standing plans – the plan which is used for activities that occur regularly over a period of time. Designed for internal operations of organisation. This plan developed once but is modified from time to time to meet business need. It includes policies, procedures, method and rules.
3. Other plan – There are other plans which are usually not classified as single use or standing plans. For example, strategy and objective as they are usually set by the top management and serve as a guide for overall planning. Single use and standing plan are part of operational planning process.

Based on what plans seek to achieve, plan can be classified as objective, strategy, policy, procedure, method, rule, programme, budget etc.

Difference Single use and Standing plan

Category	Single Use	Standing plan
Meaning	Plan formulated to meet the requirement of a particular situation and to accomplish specific objective	Used for activities that occur regularly over a period of time.
Objective	Plans are developed for activities which are not likely to be repeated in future.	Developed for activity that are recurring in nature.
Period	Generally formulated for short period.	Formulated for long period.
Stability	Less stability as they are discarded when the specific situation /project is over.	Are relatively stable as they are used over and over again.
Scope	Have narrow scope as they are formulated to fit the specific situation.	Wide scope as they involve more than one department of business function.
Example	Budget, programmes	Procedure for processing as order or recruitment of employee, policies, methods, rule.

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