PRINCIPLE OF MANAGEMENT

PLANINNG PROCESS

PRESENT BY

DABARA MAHESH SHINGALA MEHUL RAMANI PANKAJ

INTRODUCTION
There must be a definite goal before any
plan is prepared. Planning has become a general rule in economic development in managing a business unit and even in managing family affairs. Plan are prepared in response to such question as to what to be done , how , where and when it is to be done. In the absence of planning waste of time, energy and resour.

Meaning of Planning
Henry fayol: 1.According to Henry fayol Panning refers to a preview of future activities.'

2.This definition stresses that planning is concerned with future. 3.It draws a picture of future events into the present.

 George R.Terry:
1.Plannng is the selecting and relating of facts and using of assumption regarding the future in the visualization of formulation of proposed activities believed necessary to achieve desired results. 2.This is a comprehensive definition, incorporating for important features of planning.

Planning of Process
1. Establishing of Objectives 2. Building premises 3. Collection, classification and analysis of

4. 5. 6. 7. 8.

data Determining alternative courses Evaluating alternative Selection of a course of action Preparing derivative plans Providing follow-up

Establishing of Objectives
Planning is not possible if objectives are
not clear. As stated before that planning has its origin in objectives. Objectives indicate what is to be accomplished in future. If there are more then one objectives they should be arranged in order of priority.

Building premises
Planning is a programming of future
action. The premises are assumption about future setting in which planning takes place. assumption are to be made about future price of the product, wages rates, taxes sales etc

Collection, classification and analysis of data

Plan can be formulated on a scientific
basis only if proper data relating to three types of premises stated above are collected. This would enable management to interpret it and to make the course effect relationship only.

Determining alternative courses

There may be alternative courses to
achieve the goal. The component parts can either be manufactured in the factory or can be bought from outside. The additional capital can be raised either through the issue of shares or by issuing debenture.

Evaluating alternative
After considering all possible alternatives
each one of them must be properly assessed in terms of its profitability. For this propose mathematical and statistical methods and formulas may be used whenever possible.

Selection of a course of action

Assessment of various alternates makes
comparison possible and earier. The best alternatives among them can be easily identified. The selection of the alternative must be made carefully and at a right time,because the selection of an alternative can have for reaching effects on the enterprise.

Preparing derivative plans

After formulating basis plan it is to be
divided into various subsidiary plans for each selection or department. Each head of the department participates in formulating a plan for his own department and contributes in the successful implementation of the basis plan.

Providing follow-up
The plan may be executed on an
experimental basis and the chances of its success may be assessed. The debenture or difficulties noised during such trial may be rectified. Also it is essential to keep on eye on the progress of the plan when it is fully put into operation.