What is Planning and its Nature, Importance, and Types We have already been introduced to five essential managerial functions, namely, planning, organizing, staffing, leading and controlling.
Main steps in the planning process 1. It includes a preliminary look at possible future opportunities and the ability to see them clearly and completely, knowledge of where we stand in the light of our strengths and weaknesses, an understanding of why we wish to solve uncertainties, and a vision of what we expect to gain.
Setting realistic objectives depends on this awareness. Planning requires realistic diagnosis of the opportunity situation.
Objectives specifying the results expected indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, rules, budgets and programs.
Enterprise objectives should give direction to the nature of all major plans which, by reflecting these objectives, define the objectives of major departments. Major department objectives, in turn, control the objectives of subordinate departments, and so on down the line.
The objectives of lesser departments will be better framed, however, if subdivision managers understand the overall enterprise objectives and the implied derivative goals Nature of planning and control if they are given an opportunity to contribute their ideas to them and to the setting of their own goals.
An objective can be defined as the end point goal toward which management directs its efforts and resources. However, there are four outstanding benefits that result from the statement of objectives, these are: These are forecast data of a factual nature, applicable basic policies, and existing company plans.
Premises, then, are planning assumptions — in other words, the expected environment of plans in operation. This step leads to one of the major principles of planning.
The more individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be. Planning premises include far more than the usual basic forecasts of population, prices, costs, production, markets, and similar matters.
Because the future environment of plans is so complex, it would not be profitable or realistic to make assumptions about every detail of the future environment of a plan. Since agreement to utilize a given set of premises is important to coordinate planning, it becomes a major responsibility of managers, starting with those at the top, to make sure that subordinate managers understand the premises upon which they are expected to plan.
It is not unusual for chief executives in well- managed companies to force top managers with differing views, through group deliberation, to arrive at a set of major premises that all can accept.
The focus of this step is to search for and examine alternative courses of action, especially those not immediately apparent. There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best.
The more common problem is not finding alternatives, but reducing the number of alternatives so that the most promising may be analyzed.
Even with mathematical techniques and the computer, there is a limit to the number of alternatives that may be examined. It is therefore usually necessary for the planner to reduce by preliminary examination the number of alternatives to those promising the most fruitful possibilities or by mathematically eliminating, through the process of approximation, the least promising ones.
One course may appear to be the most profitable but require a large cash outlay and a slow payback; another may be less profitable but involve less risk; still another may better suit the company in long—range objectives.
If the only objective were to examine profits in a certain business immediately, if the future were not uncertain, if cash position and capital availability were not worrisome, and if most factors could be reduced to definite data, this evaluation should be relatively easy.Chapter 10 Operations urbanagricultureinitiative.com 3 • Business transforms input from environment into output to the environment • Operations function – executing transformation process • Operations function and operations management are directly involved with creating products and providing services in order to realize the objective of business Planning and control activities provide the systems, procedures, and decisions which bring different aspects of supply and demand together Difference between planning and control Planning concerns what should happen in the future and control copes with changes.
The planning and control necessary for this kind of operation can be called resource to order planning and control. Other operations might be sufficiently confident of the nature of demand, if not its volume and timing, to keep in stock most of the resources it requires to satisfy customers.
If planning and control is the process of reconciling demand with supply, then the nature of the decisions taken to plan and control an operation will depend on both the nature of demand.
Supply and demand affect planning and control If planning and control is the process of reconciling demand with supply, then the nature of the decisions taken to plan and control an operation will depend on both the nature of demand and the nature of supply in that operation.