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NATURE, IMPORTANCE AND PURPOSE OF PLANNING process

AJAY SIMHA K.J. 1AP07EC005

INTRODUCTION
Definition of planning Considered as the most basic

and parent exercise It answers all basic questions

Nature of planning
Planning is goal oriented Continuous and ongoing process
(ex: movement of a ship)

It is a pervasive function- It is done by managers at all levels Flexible in nature. (ex: colour television)

Contd.
Intellectual process- involves choice and decision making It is an integrating processimproper planning results in random activity

Schematic Representation
Continuous And Ongoing Goal Oriented NATURE OF PLANNING Integrating Process Flexible Intellectual Process Pervasive Function

Importance and purpose


Minimizes uncertainty and riskhelps in decision making (ex: refrigerator) Gives a clear view of the futureforecasting Leads to effective use of resources and economic operation Effective control-planning and control are inseparable and interdependent

Contd.
Helps to search from various alternatives (ex: selection from various models) Helps to identify potential opportunities and threats (ex: increase
production when there is demand)

Leads to development of business strategies and budget planning

Contd
Planning is useful for teamwork Sense of direction and purpose Conveying information Building trust Dividing responsibility Simplifying goals is possible through planning

Schematic Representation
IMPORTANCE AND PURPOSE OF PLANNING Minimizes risk

Effective control
Forecasting Economic operation Choosing from alternatives Identification of opportunities Team work Development of business strategies Simplifying goals

LIMITATIONS OF PLANNING
Lack of reliable data-reliable information is not available Lack of initiative-manager fails to take initiative Costly process-time consuming and expensive process Rigidity in organizational working

Contd.
Non-acceptability of change-a commonly experienced phenomenon External limitations-very difficult to predict Psychological barriers

SUMMARY
A good plan must beSpecific and simple Logical Complete and integrated Feasible Flexible-capable of being controlled

Planning is deciding in advance what is to be done in future. ~Koontz.

Plans are only good intentions unless they immediately degenerate into hard work. ~Peter Drucker

Thinking is the hardest work there is, which is probably the reason why so few engage in it... ~Henry Ford.

"Planning is a trap laid down to capture the future." ~Allen

Even if you're on the right track, you'll get run over if you just sit there. ~Will Rogers.

Planning

without action is futile, action without planning is fatal. ~Unknown.

It's not the plan that is important, it's the planning. ~Dr Graeme Edwards.