PLANNING

Definition

■ Planning is the function of management that involves setting objectives and determining a

course of action for achieving those objectives. Planning requires that managers be aware of
environmental conditions facing their organization and forecast future conditions.
■ Planning is the process of thinking regarding the activities required to achieve a desired goal.
■ Planning is futuristic

Management planning examples includes looking into the future, analyzing it and deciding a
future course of action beforehand. For an example of planning in management process, an
annual sales plan is made based on an estimate of future sales.
■ Planning bridges the gap between where we are (present) and where we want to go (future).
■ In simple words, foreseeing the future contingencies and plan for it to accomplish an objective.
Why is planning important?

■ It helps us to identify our goals clearly. It makes us decide clearly and concretely what we need to do to have the effect on society
that we want. It helps us make sure that we all understand our goal and what we need to do to reach it by involving everyone in the
planning process.
■ Planning provides directions: Planning assures that the objectives are certainly asserted so that they serve as a model for
determining what action should be taken and in which direction. If objects are well established, employees are informed of what the
company has to do and what they need do to accomplish those purposes.
■ Planning decreases the chances of risk: Planning is an activity which permits a manager to look forward and predict changes. By
determining in prior the tasks to be completed, planning notes the way to deal with changes and unpredictable effects.
■ Planning decreases overlapping and wasteful activities: Planning works as the foundation of organising the activities and purposes
of distinct branches, departments, and people. It assists in avoiding chaos and confusion. Since planning guarantees precision in
understanding and action, work is conducted on easily without delays.
■ Planning encourages innovative ideas: Since it is the primary function of management, new approaches can take the form of actual
plans. It is the most challenging project for the management as it leads all planned actions pointing to growth and of the business.
■ Planning aids decision making: It encourages the manager to look into the future and make a decision from amongst several
alternative plans of action. The manager has to assess each option and pick the most viable plan.
Types

The 4 Types of Plans

■ Operational Planning. “Operational plans are about how things need to happen
■ Strategic Planning. “Strategic plans are all about why things need to happen
■ Tactical Planning. ...
■ Contingency Planning.
Levels

Planning is a critical component that is carried out in three distinct levels namely functional,
business and corporate levels.
■ Corporate level
■ An organization’s overall strategic direction is normally planned at the corporate level.
Planning at the corporate level is carried out by a senior leadership within an organization.
■ This explains why this level of planning is usually referred to as a grand strategy bearing
in mind that it constitutes that level of decision making which dictates the activities of all
the other levels. A leader in this case provides a mission and a vision which is duly needed
in the organization towards accomplishing the set goals and objectives.
Levels

■ Business level
■ At business level, all businesses enterprises can be categorized under specific
organizations that work within specific industries. These businesses develop strategies
which work at their level and that which reflect their current position and the amount of
resources they have or need in respect to the competitive environment they are
operating.
■ As a matter of fact, competition at this level can either be price competition or a unique
selling point. Through this level a business can demonstrate its uniqueness through
product or service provision which it can also use to command higher margins.
Levels

■ Functional level
■ The functional level of planning focuses on support functions which are possessed by a business enterprise.
According to Lichtenthaler (2008), such support functions include human resources, manufacturing,
marketing and finance departments. At the functional level, strategies are defined, a consideration which
Schellekens et al (2010) suggest that supports overall corporate and business strategies.
■ Individuals in an organization rely on goals and activities planned by their leaders to align to and make
contributions towards the success of attaining set objectives.
■ In addition, the functional level of a business organization is indeed charged with the responsibility of
ensuring that each and every single aspect of an organization is run in the moist professional manner. In any
case, this level of operation is known to discharge the mandate of ensuring that the various departments of
an organization are aligned with each other in terms of the set aims and objectives which must be achieved
within a give period of time.