What is Planning Function

 What is Planning Function

Planning is a core area of all the functions of management in an organization. This is a foundation and based on those other three functions built.

This function sets objectives and determines actions to achieve those objectives.

For example

Walt Disney – First they produce different types of cartoon films. After that they made Disneyland. Next, they design bags, shirts, mugs, and many more things by using Disney cartoon characters.

South-West Airline – They use colorful dresses for different days. Also, maintain a friendly environment.

Organizations should change their planning process according to the government rules and regulations, technical environment, employment laws and to fit the environment.

Why have Goals and Plans?

  • To provide guidance and an integrated direction for people in the organization.
  • It is a source of motivation.
  • To allocate organizational resources.
  • Rationale for decision
  • Goals are a desired future state the organization attempts to realize.

Plans specified the necessary resource allocations, schedules, tasks, and other actions required for goal achievement.

Kind of Plans

  • Strategic Plans

These plans are set by top management. Such as CEO, Chairperson, Consultants. A general plan outlining resource allocation, priorities, and action steps to achieve strategic goals. Also, they have long-term goals for the organization.

  • Tactical Plans

A plan claimed at achieving the tactical goals set by and for middle-level management. In addition, this is concerned with what lower-level units must do and who is in charge at each level.

  • Operational Plans

Plans that have a short-term focus. On the other hand, these plans are set by and for lower-level managers. Also, operational plans can be a single-use plan or an ongoing plan.

For example single-use plan – special sales program

  • Ongoing plan – rules, procedures

The Planning Process

  • Develop the Plan

Set the Mission and Vision statements for the organization. And also develop strategic goals and plans that span for about five years.

2. Translate the Plan

In this step develop tactical plans which duration about one year forward.

Contingency plans – Basically this is a sort of backup plan. It identifies the alternative causes of actions to be taken if a proposed plan is unexpectedly disrupted. We did not hear about it before that. This can be used for urgent or sudden situations.

Scenario building – learn about current trends and visualize future opportunities. This includes environmental analysis.

3. Plan Operations

Here organization develops operational-level plans. And also specify the outcomes expected by departments.

4. Execute the Plan

This is the implementation part of the plan.

  • Management by objectives – A management model that aims to improve the performance of an organization by clearly defining objectives that are agreed by both management and employees of an organization.
  • Single-use plan – we use it for one time to achieve one goal.
  • Standing plan – we are using this for all the situations. For example market competition, business strategy

5. Monitor and Learn

Here mainly review the executed plan. Try to understand the current situation and where we are in. And also learn from mistakes. According to that if there is a need to make any change adjust the plan at this stage.

6. Adjust plans as needed

after reviewing the plan identified adjustments can be applied at this stage.

Factors Affecting Planning

  • Competition

Planning may play a major role in entering the profitable, emerging market for a new product or service when a company wants to compete with its competitors.

  • Economic Conditions

The overall economy or fitness of the company’s industry also may negatively impact the planning process.

Managers must be adjustable to changing outside economic conditions even when they are at the midpoint of planning a project that is of special interest to them.

  • Ability of Managers

In general, If managers do not have the experience, education, or background in planning required to be successful, they are more likely to plan poorly. However, they may not be fully bound to the planning process, as it can be complex and time-consuming.

  • Availability of Quality Information

If We do not have accurate and updated information are more likely to plan poorly and incompletely.

Today, Management Information systems (MIS) have become a key instrument in providing accurate and updated information that is required for planning a project and developing a business strategy.