Establishment of objectives
- Planning requires a systematic approach.
- Also, Planning starts with the setting of goals and objectives to achieve.
- Objectives provide a rationale for undertaking various activities as well as indicate the direction of efforts.
- Moreover, objectives focus the attention of managers on the end results to achieve.
- As a matter of fact, objectives provide the nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise, the activities undertaken are bound to be ineffective.
- As far as possible, objectives should state in quantitative terms. For example,
- Moreover, A number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like a performance of quality control manager, effectiveness of personnel manager.
- So, Such goals should specify in qualitative terms.
- Hence objectives should practical, acceptable, workable and achievable.
Establishment of Planning Premises
- Planning premises are the assumptions about the lively shape of events in future.
- They serve as a basis for planning.
- Moreover, Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations.
- It is to find out what obstacles are there in the way of business during the course of operations.
- Also, Establishment of planning premises is concerned to take such steps that avoid these obstacles to a great extent.
- Planning premises may be internal or external. Internal includes capital investment policy, management-labor relations, philosophy of management, etc. Whereas external includes socio-economic, political and economic changes.
- Internal premises are controllable whereas external are non- controllable.
Choice of alternative course of action
- When forecast are available and premises established, a number of alternative course of actions have to consider.
- For this purpose, each and every alternative will evaluate by weighing its pros and cons in the light of resources available and requirements of the organization.
- Moreover, The merits, demerits as well as the consequences of each alternative must examined before the choice being made.
- After objective and scientific evaluation, the best alternative chosen.
- Also, The planners should take help of various quantitative techniques to judge the stability of an alternative.
Formulation of derivative plans
- Derivative plans are the sub plans or secondary plans which help in the achievement of main plan.
- Moreover, Secondary plans will flow from the basic plan. These meant to support and expedite the achievement of basic plans.
- These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization.
- Also, Derivative plans indicate time schedule and sequence of accomplishing various tasks.
- After the plans have determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence.
- The purposes of taking them into confidence are:
- Subordinates may feel motivated since they involved in decision-making process.
- Moreover, The organization may able to get valuable suggestions and improvement in the formulation as well as an implementation of plans.
- Also, the employees will more interested in the execution of these plans.
Follow up/Appraisal of plans
- After choosing a particular course of action, it put into action.
- After the selected plan implemented, it is important to appraise its effectiveness.
- This done on the basis of feedback or information received from departments or persons concerned.
- Moreover, This enables the management to correct deviations or modify the plan.
- This step establishes a link between planning and controlling function.
- Also, The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can made more realistic.