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