Steps in planning
Determination of the objectives
The first step in planning is to identify certain objectives. The objectives set must clearly indicate what is to be achieved, where action should take place, who should perform it and when it is to be accomplished. The objectives should be established for the entire organization and for each and every department.
2.Collection and forecasting of information.
Sufficient information must be collected in order to make plans and sub-plans. Necessary information includes the critical assessment of current status of the organization together with a forward look at the environment that is anticipated. The collection and forecasting of the information must be done in terms of an internal environment.
3. Development of planning premises.
The next step is the establishment of planning premises. Planning premises are the assumptions and predictions about the future. The assumptions are the basis of planning. Forecasting is important in promising. It helps in making a realistic assumption about sales, cost, prices, products etc. in future. This requires the collection of data on present trends and future possibilities.
4. Discovering alternatives courses of action.
Usually, there are several alternatives for any plan. The manager should try to find out all the possible alternatives. At the time of developing alternatives, he should screen out most viable alternatives. So he has to analyze in detail a limited number of alternative.
5. Selection of best alternatives
The various alternatives identified are evaluated and compared in terms of their expected cost and benefits. Many quantitative techniques are available to evaluate alternatives, after evaluating the various alternatives the best alternatives should be selected for implementation.
6. Formulation of derivation plans
The next step is to develop detailed sub plans for its implementation. Derivative plans are required to support the overall plans. The derivative plans are developed in the framework of overall plans. These are drawn up with respect to different areas of activity.
7. Communicating the plan
It is very important to get the cooperation of the subordinates at every stage of its implementation. For this purpose, the plans should be communicated and explained to them so that they can get the clear picture of what to be done. An organization is not benefited from planning until they are put into action.
8.Follow up measures
To ensure the plans are proceeding along the right lines, the actual performance is compared with the planned performance. In this way any shortcoming can be noted and suitable remedial action can be taken.
Major factors affecting implementation of planning.
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