This step involves allocating the resources, organising for labour and purchase of machinery. For example, a superior’s plans affecting a sub-ordinate manager’s area of authority become premises for the latter’s planning. External premises include total factors in task environment like political, social, technological, competitors’ plans and actions, government policies, etc. Planning is the process of deciding when, what, where and how to do a certain activity before starting to work. This is the primary step in the process of planning which specifies the objective of an organisation, i.e. Q. Plans are prepared with a view to achieve certain goals. Step # 1. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. The most common problem with alternatives is not that of finding of alternatives only but to reduce the number of alternatives so that most promising ones may be taken for detailed analysis. 4 Question Vrio Framework Explained, BCG Matrix Explained - Boston Matrix Model Analysis and Advantage, Difference between Strategy and Planning - Strategy versus Planning, Role of strategic planning in an organization, 7 simple reasons that justify the importance of planning, The Importance of Strategic Planning in an Organization, Tactical Planning - Definition, Importance, Characteristics And Strategy, 3 Main Types of Business Strategies Planning. The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented. Identify the Step. (3) Identifying Alternative Courses of Action. This is the step where other managerial functions come into the picture. could be known. I love writing about the latest in marketing & advertising. the screen. Developing Planning Premises 4. Planning premise is planning assumptions – the expected environmental and internal conditions. Objectives are specific and are measurable in terms of units. Cheers. Which is the Most Crucial Step in Planning Process? Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within the planning premises and within the availability of capital. This presents a problem because each alternative may have certain positive points on one aspect but negative on others. The nature of planning premises differs at different levels of planning. All the alternative courses of action should be identified. You can follow me on Facebook. This article throws light upon the eight main steps involved in the planning process of an organisation. After the evaluation of various alternatives the fit one is selected. The major plans, both old and new, will materially affect the future against which the managers at lower units must plan. Plan must make sure that every activity undertaken contributes to the achievement of objectives. However, this awareness is very important for planning process be-cause it leads to formulation of plans by providing clue whether opportunities exist for taking up particular plans. Since all alternatives cannot be considered for further analysis, it is necessary for the planner to reduce in preliminary examination the number of alternatives, which do not meet the minimum preliminary criteria. Required fields are marked *, Planning Process: 7 Vital Steps of Planning. The above mentioned is the concept, that is elucidated in detail about the ‘Planning Process’ for the Class 12 Commerce students. Your email address will not be published. It is one of the primary managerial duties. Establishing Goals (or Setting Objectives): This refers to deciding what the organisational or subunit wants or needs. In this function, managers define the organizational goals and allocate resources of the organization to achieve such goals. Objectives can be long term and short term as well. Thus, there will be hierarchy of objectives in the organization. This provides an opportunity to set the objectives in real sense because the organization tries to relate itself with the environment. So planning will … From this point of view, it can be considered are the beginning of planning process. Planning is essentially focused on the future, and there are certain events which are expected to affect the policy formation. Such techniques will be described in a later chapter. In doing so, it takes the advantages of opportunities and avoids threats. Internal factors include organization’s policies, resources of various types, and the ability of the organization to withstand the environmental pressure. Before doing something, the manager must form an opinion on how to work on a specific job. Monitoring the plan constantly and taking feedback at regular intervals is called follow-up. For example, if an organization has set its objective to grow further, it can be achieved in several ways like expanding in the same field of business or product line, diversifying in other areas, joining hands with other organizations, or taking over another organization, and so on. The project planning process is closely linked to the planning … Mobile phone company hires salesman on a large scale, creates T.V advertisement, and starts online marketing activities and set up service workshops. At the top level, it is mostly externally focused. Forecasting plays a major role in planning premises. In this step, managers communicate the plan to the employees clearly to convert the plans into action. Can someone else please comment and let Thanks alot my God keep blessing marketing91 thank u all ??? Objectives are end results which the management wants to achieve by its operations. Preliminary criteria can be defined in several ways, such as minimum investment required, matching with the present business of the organization, control by the government, etc. As one moves down the organizational hierarchy, the composition of planning premises changes from external to internal. This is the second and perhaps the most important step of the planning process. It is a complex of tasks for setting up a project plan and also defining subsidiary plans. Based on plans at various levels, it can be decided who will do what and at what time. The documents developed may include: Strategic plans (long-range, high-level company goals) As planning is an activity, there are certain reasonable measures for every manager to follow: A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the current sales. Thus, planning premises are external and internal.