Meaning and Characteristics of Planning, Levels of Planning

Meaning of Planning

Planning is the steps for future action which is prepared for achieving goals efficiently and effectively. It is also called blueprint of action. It is the first and foremost function of management. It decides what to do or what not to do, who will do it and how the result will come in the coming days. It’s the primary function of management. It focuses on the future course of action. All the organization needs planning to achieve their goal. For planning, it requires both creativity and analysis in defining business opportunities. It is the process of guiding the business towards the clear way.

According to Robert R Kreitner, “Planning is the process of coping with uncertainty by formulating the future course of action to achieve specified result”.

According to Richard steers, “Planning is the process by which managers define goals and take the necessary step to ensure that these goals are achieved”.

According to Ricky W. Griffin, “Planning is setting an organization’s goals and deciding how best to achieve them”.

From above definitions, we may come to the point that it is the process by which a manager looks into future and discovers alternatives course of action so as to select best alternatives among alternatives.

Characteristic of Planning

The different characteristics of planning are as follows:

1. Primary function: Planning is the primary function of management. It plays the vital role in co-ordination of all function of management. Planning provides the basis for organizing, staffing, leading, controlling, etc.

2. Pervasive activity: Managers at all levels of the organization perform the planning function. Planning is needed for all activities at all levels although nature and extends of planning varies with the position a person is holding in the organizational hierarchy and with the broad guidelines provided by his superior managers. In other words, top level management prepares strategic plans, middle-level management prepares department plans and lower level management prepares day to day operational plans.

3. Future-oriented: Planning is always done for future. To ensure its survival and growth, it is one of the basic objectives of every business. Its main motive is to meet the future course of action or events. It is done if only planning is able to cope up with the changing environment. Thus, it impulses analyzing, anticipating and predicting the future. It also provides guidelines, suggestion and develops a framework for future operation

4. Continuous Activity: Planning is continuous and never ending process because of changing environment of business. All organization at all points of time have clearly defined a hierarchy of plans. Management can’t plan once for all. When a business organizational objective is achieved, a new plan is made to achieve future objectives of the organization. So, due to this, it is a never ending process.

5. Intellectual work: Planning involves local thinking and decision making. It is a mental work. Planning needs intelligence, imagination, and fair judgment. Top level managers were making plans and they must have experiences and ability. Before making plans, they thinks about coming problems and their alternatives courses of action and their impact. Thus, planning is mental or thinking process.

6. Flexible: Plans must be flexible in manner. It should draft in such a way that they can adjustable if there is a change in environment. It may be affected by many factors in future. So, it should be flexible even though there is a change in environment.

7. Efficiency and economy: Planning involves efficient utilization of various resources like materials, machines, labor, etc. The efficiency of a plan is measured by the amount of its contribution to the goals and objectives as against the costs involved in the formation and implementation of the plan.

Level of Planning

Planning is the future base of action. It has different types. It may be classified as per time period, nature of plans and managerial hierarchy. The planning is preparing either for a short period or long period of time. Following are the types of planning:

• Strategic plan
• Tactical plan
• Operational plan

1. Strategic plan: Strategic plan is prepared by the top level management. It is the brand action plans to achieve the mission and strategies goals. It covers the total organization. It consists of policies, schedules and program to utilize the available resources of the organization. These plans are mainly concerned with the determination of organization, long- term goals and formulation realities. Strategic plans are long term for three, five or more years. They provide long-term direction to the organization.

2. Tactical plan: Tactical plan is prepared by a middle level management. It is prepared for implementation of corporation plan. In this planning, managers identifies the plans on the basis of priority of work. Allocation of works and resources are a focus on the basis of programs. It prepares to allocated divisional activities like finance, personnel, marketing, production and so on. This plays a role of a bridge between operational and corporate plans.

3. Operational plan:Operational plan is prepared by lower or first line level management. It considers day to day activities. Such plan is developed by lower level management. These plans have a very short term focus. It prepares regular production schedule of production department. So, importance should be given to regular production process.

Reference

Poudyal, Dr.Santosh Raj. Principles of management. Bhotahity,Kathmandu: Asmita Book publishers & Distributors(P)Ltd, 2011.