ESSENTIALS OF PLANNING

The purpose of any organizational plan is to pursue a developmental goal or address the
current problem. It is prepared after a careful research and study of the prevailing conditions of
the enterprise. It sets target and directional strategies to accomplish the maximum potentials of
its resources. In developing a comprehensive plan, management has to do the following:
1. Define clearly the target goals and objectives. It must be set by the person having
authority and control. This should be specific, measurable, acceptable to all concerned, realistic,
and time bound. goal

2. Identify all issues and problems that need to be addressed

3. Review present and past performances.

4. Decide on the important corporate requirements and how to meet them.

5. Prepare time tables in graph and charts.

6. Develop strategies to accomplish the goals and objectives.

7. Review periodically accomplishments against targets.

RELATIONSHIP OF PLANNING AND CONTROL

Organization cannot move effectively without clear objectives, and it cannot have an
effective system of internal control unless it has plans. Plans establish guidelines for progress.
The control mechanism steers its course towards targets.
The airplane in its course towards a distant destination is guided by a map drawn in its
computer box as organization has written plans to guide its destination to progress. The airplane
changes its course when turbulence occurs, much the same way that the chief pilot of the
organization has to deviate when the path to economic prosperity becomes difficult.
Approved plans led to action with the imposition of control measures to see that the
desired output is achieved. The output is then compared with the plan as to its compliance with
the budgetary and resource allocations.
The link between planning and controlling is scheduling. The programs must be with
time tables define specifically into schedule of activities which were drawn in graphs and charts.
Any change in the scheduled time and the cost estimated is a variance and constitute a red flag
for management to investigate.
 If a job is running late or exceeding its cost estimates, something is wrong and therefore
control must be instituted by management. When control valves are loose, variance show up and
management has to fix the loose valve. Planning should always be associated with control.
Overages would be much greater when variances are not properly checked.