Different approaches to planning and purpose served by planning

Planning

1. Different Approaches to Planning and Purpose Served by Planning

2. Planning Planning  is the conscious, systematic process of making decisions about goals and activities that an organization will pursue in the future . A plan is a pre-determined course of action. Planning is essentially a process to determine and implement actions to achieve organizational objectiv es.

3. Planning involves the task of deciding in advance :- What to do? How to do? When to do it? Who will do it?

4. A manager has to answer four basic questions while formulating a plan :- Where are we now realistic assessment of current situation? Where do we want to be? Gap between where we are and where we want to be? How do we get there?

5. Different Approaches to Planning Top down approach Bottom up approach Composite approach Team approach

6. Top down approach Authority and responsibility is centralized at the top. The top management defines the mission and lays down strategies and plan of action required to achieve stated goals. The blueprint of the plan is passed on to the people working at lower levels who do not participate in the planning process. The success of this approach depends upon the qualification, experience and capabilities of top management

7. Bottom up approach Lower level managers are responsible for preparation and implementation of plans (make functional plans which are approved by top management)

8. Composite approach In such a approach the lower and middle management is responsible of drafting out plans in accordance with guidelines and boundaries stated by the top management.  Every plan is up for a discussion and debate and a middle path is chosen to facilitate smooth implementation of plans.

9. Team approach In such a approach a team of managers having relevant experience and skills in various functional areas are assigned the job of planning. The plans are then approved by the top management

10. Purpose Served by Planning 1. Facilitates Accomplishment of Objectives 2. Ensures Economy in Operations 3. Precedes Control 4. Provides for Future Contingency 5. Facilitates Optimum Utilization of Resources 6. Pr-requisites for other Managerial Functions 7. All Pervasive Function 8. Coordinates the Activities 9. Provides for the Delegation of Authority