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Stages in the process of

planning

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Stages

1. Goal setting: 2. Developing the planning premises: 3. Reviewing Limitations: 4. Deciding the planning period: 5. Formulation of policies and strategies: 6. Preparing operating plans: 7.Integration of plans: 8. Follow up measures

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1. Goal setting establishment of organizational or overall

objectives is the first step objectives should be set in key areas of

operations. they should be specified in clear and

measurable terms.

objectives are set in the light of theopportunities perceived Establishment of goals is influenced by the

values and beliefs of executives, mission of theorganization, organizational resources, etc.

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1. Goal setting objectives must be clear, specific and

informative Major objectives should be broken into

departmental, sectional and individualobjectives.

to set realistic objectives, planners must

be fully aware of the opportunities andproblems that the enterprise is likely toface.

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2. Developing the planningpremises

Before plans are prepared, theassumptions and conditions underlyingthem must be clearly defined

assumptions are called planning premises They are forecast data of a factual nature.

Analysis of internal (controllable) andexternal (uncontrollable) forces isessential

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3. Reviewing Limitations several constraints or limitations affect the

ability of an organization to achieve itsobjectives

they must be anticipated and provided for. The key areas of Imitations are finance,

human resources, materials, power andmachinery.

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4. Deciding the planning period

The planning period should be long enough topermit the fulfilment of the commitmentsinvolved in a decision.

The planning period depends on several factors future that can be reasonably anticipated, time required to receive capital investments, expected future availability of raw materials, lead time in development and commercialization of a

new product, etc.

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5. Formulation of policies andstrategies

The responsibility for laying down policies andstrategies lies usually with management.

the subordinates should be consulted as they

are to implement the policies and strategies. Alternative plans of action should be developed

and evaluated carefully

Imagination, foresight, experience andquantitative techniques are useful in thedevelopment and evaluation of alternatives.

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6. Preparing operating plans Several medium range and short-range plans

are required to implement policies andstrategies.

These plans consist of procedures,programmers, schedules, budgets and rules.

Such plans are required for the implementationof basic plans.

Operational plans reflect commitments as tomethods, time, money, etc.

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7.Integration of plans Different plans must be properly balanced

so that they support one another. plans must be communicated and

explained to those responsible for puttingthem into practice.

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8. Follow up measures A system of continuous evaluation and

appraisal of plans should be devised identify any shortcomings or pitfalls of the

plans under changing situations.