Professional Documents
Culture Documents
AND PURPOSE OF
PLANNING process
Continuous
And
Ongoing
Goal Pervasive
Oriented Function
NATURE
OF
PLANNING
Integrating Intellectual
Process Process
Flexible
Importance and
purpose
Minimizes uncertainty and risk-
helps in decision making (ex: refrigerator)
Gives a clear view of the future-
forecasting
Leads to effective use of resources
and economic operation
Effective control-planning and
control are inseparable and
interdependent
Contd….
Helps to search from various
alternatives (ex: selection from various models)
Helps to identify potential
opportunities and threats (ex: increase
production when there is demand)
Minimizes risk
Effective control
Forecasting
Economic operation
Identification of opportunities
Team work
Simplifying goals
LIMITATIONS OF PLANNING
Lack of reliable data-reliable
information is not available
Lack of initiative-manager fails to
take initiative
Costly process-time consuming and
expensive process
Rigidity in organizational working
Contd….
Non-acceptability of change-a
commonly experienced
phenomenon
External limitations-very
difficult to predict
Psychological barriers
SUMMARY
A good plan must be-
Specific and simple
Logical
Complete and integrated
Feasible
Flexible-capable of being
controlled
“Planning is deciding in advance
what is to be done in future.”
~Koontz.