Planning and its nature

Category: Bank
Posted on: Monday, September 18, 2017

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Simply stated, planning means deciding future course of action i.e. making plans for attaining organization’s objectives. Planning is the process of determination of organization’s objectives and selecting the course of action i.e. plans for attaining them.

 According to Weihrich and Koontz – “Planning involves selecting mission and objectives and actions to achieve them. If requires decision making i.e. choosing from among alternative future course of action.

 According to Robert Albanese, “Planning is the process or activity of determining in advance specifically what should be done in order to achieve particular goals, how it should be done, when or where it should be done and who should do it.”

 Nature of Planning:

 (1) Primary or Basic Function: It is a primary function because it is the foundation on which all other managerial function rest.

(2) Pervasive Function: Each and every manager has to perform this function regardless of his level and area of specialization.

(3) Purposeful: Planning begins with some goals or objective that an organization wishes to achieve.

(4) Interdependent Activity: Planning in one development is dependent on the planning of other department.

(5) A Process: Planning is a process in which managers anticipate future by analyzing environmental factors, set goals or objectives.

(6) Planning is a Path Finder Process: It is the process by which answers to questions like where, when, how etc.

(7) It is a continuous and never ending process.

(8) It is a dynamic process.

(9) It is an intellectual process because it requires managers to think intelligently and rationally before doing.

(10) Futuristic: Every plan is prepared to face and win over the future challenges and threats.

(11) Time Bound: It is always time bound. It may be of short range or medium range or long range.

(12) Planning involves Decision Making: It is a process of selecting one best course of action out of the available alternatives.

(13) Planning and Action are Twins: Planning alone cannot serve any purpose. Planning presupposes necessary action for its implementation. Both must go hand in hand.

(14) Planning and Controlling are Inseparable: Plans furnished the standards against which actual performance is measured and controlled.

(15) Forecasting is the Basis of Planning: Future course of action are decided on the basis of information and knowledge provided by forecasting.