ASSIGNMENT

PLANNING IN INDIAN ORGANIZATIONS

Serial Name of the Topic
no.
1. Meaning of the planning

2. Characteristics of planning

3. Objectives of planning

4. Brief history of planning in India

5. Steps of Planning in Indian

Organizations
6. Central points regarding planning in
Indian organizations
MEANING OF PLANNING
Planning is a process of decision-making backed up by rationality and
logical thinking. It refers to estimating what activities to do and how
to perform them to achieve the goals of the organization as a whole.
Planning is based on predictions and forecasts. It is facilitated
through foresight and various precautions. Planning bridges the gap
between where we are and where we want to go.

CHARACTERISTICS OF PLANNING
Planning is a requisite to other principles of management
Planning is the first and foremost principle of management as it lays
the foundation for other functions such as organizing, staffing,
directing, and controlling.
Constant Process
Planning is done keeping in mind the present goals and aspirations of
the organization, once these goals are achieved new plans are
formulated. Hence planning is a continuous process.
Pervasive function
Planning is required at all times in all the departments of an
organization, however, different departments might have different
plans.

Decision making
In planning the managers have to make decisions regarding various
alternative courses of action in a very systematic manner. Thus
decision-making forms the basis of planning.

Planning is future-oriented
Planning leads to innovation as it involves achieving the
predetermined goals of the organization.

Objectives of Planning

Minimizes Risks
Competent planning takes into account all sorts of events whether
desirable or undesirable. Through planning an organization can
reduce the risk of uncertainty and safeguard itself against many
threats.

Economy in operation
As planning consists of choosing the best plan from various
alternative plans, there is a better utilization of human, financial, and
material resources.

Facilitation of Coordination and cooperation

Through the process of planning various departments synchronize
and integrate. Thus it brings about cooperation and coordination.
Planning takes precautionary steps against conflicts that may arise
within the organization.

It enables the organization to manipulate competition to some extent

Planning provides an effective way to handle competition healthily.
Through the process of planning an organization can develop various
ways to face unpredictable changes.

PLANNING IN INDIA

After independence in 1947, India owing to its status of being a

‘republic’ conformed to planning aimed at economic and social
upliftment.
HISTORY OF PLANNING IN INDIA
In 1938, a planning committee ‘National Planning Committee’ was
established with Dr.Jawahar Lal Nehru as its chairperson to foster the
cause of economic development. This committee though a step
towards economic growth was not able to implement its plans.
Through a resolution by the cabinet, The Planning Commission was
formed on March 15, 1950. after a few years of ambiguity, the
commission was asked to submit a draft of Five Year Plans.
Nationwide there are two statutory bodies and planning machineries.
They are
1. Planning Commission
This is formulated by the Union Government of India; it puts
together plans for the entire country and also incorporates
plans of states.
2. National Developmental Council
This body consists of Chief ministers of all states, union
ministers, and certain members of the other planning body-
Planning Commission. This body serves as a supervisor for the
planning commission.

FIVE YEAR PLANS

India started formulating the Five Year Plans post-independence
to achieve economic development and for proper utilization of
the country’s resources. The Planning Commission formulated,
implemented, and regulated the Five-year Plans in the country
for its economic and social prosperity. They were carried from
1951-2012. These plans focused their attention on the following
points:

 Economic stability to ensure economic and social prosperity

 To enable the economy to become autonomous
 To raise the level of sustenance of the country
 Eliminating inequality and fostering economic and social
justice
 To remodel the economy

NITI AAYOG
The Five Year plans were replaced by the National Institute for
Transforming India (NITI) Aayog. It is a policy think tank of the
government that enables the government to implement
policies and take measures to ensure its execution. The main
aim of this organization is to create a strong and self-reliant
state through economic upliftment.

STEPS IN PLANNING
Planning consists of the following steps:
 Setting the objectives: The main purpose of a plan is to
achieve the goals of the organization thus, the first step
towards planning is setting up the objectives. Objectives
provide the basic guidelines as to how to perform tasks.
 Establishing planning premises: Planning premises provide
the boundaries within which plans can be executed.
Planning premises are established through foresight and
predictions.
 Determining alternative courses of action: various courses
of plans are evaluated based on the cost involved and
overall profitability.
 Choosing the best plan: After evaluating various plans the
most convenient and most aligned with the company’s
policy is chosen to achieve various goals of the
organization.
 Forming a derivative plan: The mere process of choice of
the plan is not involved in Planning rather a derivative
plan is formed to ensure the implementation of the
chosen plan.
 Procuring coordination and cooperation: For the
successful implementation of the plan, combined efforts
of the entire company are required. The plans should be
 ‘communicated’ very clearly to all the departments to
ensure its absolute operation.
 Follow-up action: The relevance and effectiveness of
currently adopted plans are evaluated at regular intervals.
Furthermore, plans which are deemed to be inadequate
are altered. New plans are also formulated keeping in
mind the dynamicity of the market.

PRESENT SITUATION
Currently, the country is maneuvering post-COVID-19 effects
and is dealing with economic strain accompanied by the same.
Listed below are a few points that the Indian organizations,
keep in mind in the process of planning:

Operational Planning
This type of planning pertains to the day-to-day activities of the
organization like the allocation of work and resources. Under this, the
top management plans specific courses of action to meet the short-
term goals of the organization and assigns work to the individual best
suited to perform it.

Budgeting
Budgeting involves maintaining a healthy balance between net outlay
and revenue generated. It also bolsters a healthy and regular cash
flow to finance all the departments of the organization.

Strategic Planning
Strategy is an integrated plan with long-term motives and short-term
implications, In strategy an organization can achieve its goals by
developing a course of action. An effective strategy goes a long way if
it is implemented properly it becomes elemental for the organization
to achieve its goals.
Computation of Human Resource
Calculation and planning of human force required by the organization
is essential for determining how the resources will be allocated
between various personnel and departments. An adequate and
efficient workforce is the key to the smooth functioning of the
organization.

Risk management
Since the business environment is dynamic, a certain degree of risk is
always present. Organizations minimize the risk involved in the
business by regularly monitoring the external as well as the internal
environment. The companies remain updated regarding changes and
trends in the market to minimize the adverse effect of dangers
causing risks. The business also adopts various mitigation strategies.

Sustainable and environmental goals

In the current scenario, it has become potent to be environmentally
conscious, thus Indian organizations have begun planning to embrace
sustainable ways to operate. This policy also portrays them in a good
light in the eyes of the customer and also is beneficial for the
environment.
Regulations by the government
One of the most important aspects of planning g is to find a way to
incorporate the policies of the government without making them
impact the organizations unfavorably. This is done by creating certain
shock absorbers that absorb unfavorable conditions and various
threats. The organization integrates its operations with government
policies. For eg. ‘Make in India’, and ‘Digital India’ fostered the
growth of Indian industries.
International growth
Indian organizations focused on global expansion plans, keeping
factors such as foreign exchange, demand-supply factors, fluctuations
in currency, general acceptability, and cultural inclusivity.
Organizations also plan for ‘supply chain” pliability.

Consideration for e-commerce and online marketing

The modern economy relies heavily on the use of technology,
organizations plan regarding online advertising, and various channels
to promote the products of the company and engage customers.
Adoption of technology is of great essence to improving the
operational efficiency of the business.

Protection and privacy of data

The organization takes initiatives through prior planning to protect
the data of the company and protect it against cyber threats. Strict
measures as well as certain restrictions are imposed to prioritise the
privacy of the company as well as its employees.

Customer Focus
The customer is supposed to be the focal point of the activities of an
organization. A company cannot survive in the wrong run if it does
not provide its customers with value for money. Through planning
Indian organizations assess the current needs of the consumers and
many factory products to maximise the utility of customers and
maximize their profits.
SUBMITTED BY:

GAURI GUPTA
500121503