Wednesday, December 1, 2010

STEPS IN PLANNING

STEPS IN PLANNING
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
There are eight applicable steps in planning which should be followed by managers in
connection with major programs and in any other through planning.
1. AWARENESS OF OPPERTUNITIES
An awareness of opportunities in the external environment as well as within the
organization is the real starting point for planning. All managers should take look at
future opportunities and see them clearly and completely. They should know where
they stand in light of their strengths and weakness, understand what problems they
wish to solve and why, and know what they expect to gain. Setting realistic objectives
depends on this awareness.
(i) About market (ii) About expected competition (ii) What customers wants (iv)
Awareness about their qualities and weakness
2. SETTING OBJECTIVES
The second step in planning is to establish or set objectives for the entire enterprise
and then for each subordinate work unit. Objectives specify the expected results and
indicate the end points of (i) What is to be done (ii) Where the primary emphasis is to
be placed (iii) What is to be accomplished by the network of strategies, policies,
procedures, rules, budgets and programs.
3. DEVELOPING PREMISES
The third logical step in planning is to establish planning premises. Such as forecasts,
applicable basic policies and existing company plan. The are assumptions about the
environment in which the plan is to be the carried out. It is important for all the
managers involved in planning to agree on the premises.
Forecasting is important in premising: What kind of markets will be there? What
volume of sales? What prices? What products? What technical developments? What
cost? Etc
4. INDENTIFYING ALTERNATIVE COURSES OF ACT
ION
The forth step in planning is to search and examined alternative courses of actions.
The planner must usually make preliminary examination alternative courses to
accomplish the goal.
5. EVALUATING ALTERNATIVE COURSES
After determining alternative courses and examining their strong and weak points, the
next step is to evaluate the alternatives. That which alternative will give the best of
meeting goals at the lowest cost and highest profit in a given period.
6. SELECTING A COURSE
Selecting an alternative is the real point of decision making. This is the point at
which the plan is adopted. After identifying and evaluatin
g alternative the manager
has to decide one best alternative or several alternative courses of action.
7. FORMULATING DERIVATIVE PLANS
The seventh step in planning is formulating derivative plans. When a decision is made
next step is to formulate a supporting plan, such as to buy equipment, materials, hire
and train workers and develop a new product.
8. NUBERISING PLANS BY MAKING BUDGETS
After decision making and formulating plans the final step in planning is to
numberise decision and plan by converting them into budgets. The overall budgets of
an enterprise represent the sum total of income and expenses with resulting profit.
Budgets are important thing in planning process.
STEPS IN PLANNING


Ditulis Oleh : Naz Nazir // Wednesday, December 01, 2010
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