Nature and Characteristics of Planning

Managerial function has some unique characteristics of its own which separate it from other functions. They are: Primacy of Planning: Planning is the first and foremost activity of Managerial function. Management starts with planning. Planing gives base for other functions like organizing, staffing, directing controlling etc. It is equally important like all other managerial functions. Planning a Process: Planning is a process of management which starts with identification of mission and goals of the organization and ends with making arrangements for fulfilling the goal. Ubiquity/pervasiveness of Planning: Planning is an function which exists in all levels of managerial hierarchy. Starting from the the CEO to down to the last line worker. But the content and quality of planning differ in different levels. Planning of top level executives considerably affect the function of organization. Middle and lower level managerial planning will not affect much of the function of the organization. Some examples of planing are: Production planning, Material requirement planning, financial planning, project planning etc. Future orientation: Planning are always future oriented. It is a process which look ahead or think ahead and making provision to tackle future event. While planning for the future managers would consider the situations and events of present and past within and outside the organization. Information base: Information is the basis of planning. Without information planning is not possible. Information about present, future and past are needed for the good planning. It will help the managers to evaluate the present and future situations and plan accordingly for the future. Rationality: Planning is done based on reasons rather than emotions. That is why planning is said to be a purposeful and conscious managerial function and is backed by necessary information, understanding and knowledge. Planning decisions are made with the awareness of their consequences. Managers are unemotional in their approach to planning. Formal and informal Nature: Normally planning is of formal and informal nature. Formal planning is done through investigation and analysis of various factors. It will be a step by step process to achieve the goal. Various jobs are allocated and communicated to managers of different levels and are recorded for future reference/control and accountability. Informal planning is done by the managers and communicated them to others through the word of mouth which are flexible. Informal planning is considered as a trial and error process.

Intellectual Process: Planning is a process which needs the ability to think in a logical way and understanding things. It needs the ability or skill to view the future opportunity and threats. The person who does the planning should have the ability to see the problems and analyze it and find an alternate way to solve these problems. Choosing the right course of action is the most important skill needed by the person who does the planning Pragmatic, action-orientation: Even if it is an intellectual process, it needs practical, flexible and sensible way of action rather than a fixed ideas or theories. Think before acting and decide before doing are part of the culture of planning. Actions should be practical and implementable. Planning follows action and these actions should be discussed and confirmed in advance. Decision making: Planning involves decision making and problem solving. It also involves identification of the issues which needs to be addressed, collection of relevant information/facts, finding out the most appropriate alternative course of action or choice. Decisions are made based on organizational policies, programs, strategies, objectives, other plans and procedures. It also involve allocation, mobilization and commitment of resources. Dynamism: Planning is a dynamic process and it is based on the external and internal changes of environment. Delay in planning may cause huge losses. Market changes and current fashion trends are to be taken in to consideration while planning. The trend is changing every day. If the organization is not changing as per the current trend, the organization will fail to continue its existence. It is a continuous process of assessment and reassessment of goals, resources, directions opportunities and problems of the organization. Levels and of planning: On the basis of scope there are two levels: 1. Corporate Planning covering the entire organization 2. Sub-corporate or functional Planning within the various divisions or units. On the basis of significance we may divide planning into 1. Strategic planning 2. Tactical or operational planning. On the basis of time we can divide planning into: 1. Long term planning covering periods of more than one year. 2. Short term planning covering a period of one year or less. Even if we divide planning into different levels to analyze, it must be coordinated and balanced to support one another and attain the objectives of the organization.

Types of plans: Plans are categorized into two groups: 1. Single use pans those which are designed to meet specific, non-repetitive and unique situations 2. Standing Plans those which are fairly stable and are meant to handle a wide range of repetitive situations over a period of time.

5 Simple Steps To Planning For Success

These are worthy goals and ambitious ones too but if you really want to succeed at anything youll get there faster with a plan. Ive already achieved many of my life dreams and the key to that has been careful planning. Here are a few life dreams Ive achieved so far:

Lived and worked in France, the USA, the UK, Zimbabwe, Laos, New Zealand, Costa Rica and Australia plus travelled to numerous other countries. Set up my own business and worked from home in three different countries for the last 12 years. Got married and had children, but not in that order. Settled near the beach in a stunning tropical place.

Do You Have a Plan?

But enough about me. Lets focus on you. What are your goals? Do you know? Because if you dont know what your goals are then you havent got much chance of making them happen. The rules are the same when it comes to planning your life, your business, you blog, your holiday or just about anything. The more time you spend planning the more success youll have. To keep this simple Im going to use my blog to explain how I plan and what you can do to plan for success too. Im focusing on a blog but the basic principles can be applied to planning just about anything. After reading this youll have a real understanding of how careful planning will help you get where you want to be. By the time you get to the end of this article you should be fired up and excited about planning your dream life, blog, business, party or whatever else you choose to focus on because planning is fun in itself and the results are even better.

Step 1: Work Out Your Goals

My blogging goals are simple:

1. To give invaluable information and help people live their dream. 2. To create a viable business. What are your goals? Keep them simple and sum them up in one or two sentences.

Step 2: Do Some Research

Ive spent a year researching blogging which is a bit over the top but I want my plan to work so I needed to find out if it was possible. Here are the three key questions you need to ask yourself before you set up a blog or business. 1. Are the products or services you offer in demand?

2. Can you offer a unique selling point? 3. Do you have the know how to supply your target audience and deliver the goods? My research has told me that: Yes, the information Im giving here is needed. Yes, theres a gap in the blog market for honest, concrete advice on self improvement for the self employed, from a woman whos been there and done it. Yes, I have the necessary skills to supply the goods. Im a writer with a good understanding of Web design. Some skills like social media I dont have I can learn myself and other skills I lack like technical expertise and graphic design I know people who can help me with those. If you dont have the skills you need work out how to get them or access them. Is your idea viable? Is your dream realistic?

Step 3: Assess Where Youre Up To

So far on this blog Ive:

Built up a huge amount of content. There are over 120 articles here ~ probably around 120,000 words which is the size of a decent book. Built up a core of dedicated readers who like what I have to say, keep coming back to read more and tell other people about it.

What skills and experience have you already got that will stand you in good stead when it comes to achieving your goal?

Step 4: Work Our What You Need To Do Next

To achieve my goals I need to:

Keep building more subscribers. Carry on writing excellent content and giving it away free of charge here and with guest posts on related blogs. Introduce income streams.

What steps do you need to take to work towards your goal?

Step 5: Create a Timeline

When you make a timeline plan the actions you need to take within a certain time frame. I could procrastinate for hours, weeks or probably years given half a chance but I find actually working out a timeline, writing it down and committing to is the best way for me to stay on track and achieve my goals. Because Im a parent and work around my kids I work in school terms or semesters as theyre called in the States. Here in Australia there are four terms of 10 weeks each. I find this a useful way to divide up my year, parcel out the work and decide how to fit it in. A 10 week plan also gives me a break four times a year when I can stop, take stock of progress and have a well deserved break. Youll need to work out a timeframe that works best for you. How To Make a Timeline That Works For You 1. Work out a goal. 2. Plan how to achieve it. 3. Break it into small tasks. 4. Introduce a time frame and make a timeline that works for you. 5. Work out what the key barriers are. 6. Stick to the timeline as much as possible. 7. Measure your progress. 8. Learn from your mistakes and dont give up.

My 10 Week Blogging Plan

Heres my plan for the coming 10 weeks. I know it wont go exactly according to plan but I also know that the plan will help me get more done than if I was blogging freestyle. Ive already created an editorial calendar so I know what topics Ill be writing about here until June. Weekly Tasks Every week I plan to write two posts for Get In the Hot Spot and one guest post. This might look easy to you but I have my own business to run, copywriting clients with deadlines, three kids and a household to run too. Plus Coca Cola have just headhunted me for a trip to Shanghai to launch their Live Positively initiative because they like the uplifting tone of my writing here. Im not kidding! Its an interesting story and a wonderful opportunity. In addition to the three posts I plan to write every week Ive allocated each of the 10 weeks to one task. The idea is that I can work on one of these major goals each week. For some of the goals thats realistic. For some its well nigh impossible. For example, creating an ebook is definitely not something I can turn around in a week. But by putting it on the list I can at least get started by deciding on what the topic is and planning the contents in detail. Im a planner. I love it. In fact I think the danger for me is that I could spend more time planning things than actually following through on them. So here I am committing to keep my blog moving forward no matter what else is going on in my life.

My Week By Week Plan

1. Work out a plan of action to reach my blogging goals. 2. Redesign the blog. 3. Incorporate video or audio. 4. Complete my 12 step blog program its a course Im developing to help people learn to blog by giving them only the most important information. Ive started writing it and am testing it out on two budding bloggers to see make improvements to it and make sure it makes sense. 5. Create a free product (probably an ebook) to encourage email subscriptions. 6. Find a sponsor. 7. Open a store and sell two select affiliate products that I believe in 100%. 8. Create a survey to poll readers on what would be a good product to create myself Im thinking of an ebook but want to see which topic interests readers most. 9. Create a product and get it ready to launch in September. 10. Design and lead some blogging seminars for small business owners or writers in my local area the Sunshine Coast, Queensland, Australia.

Over To You
My goal for my first year of blogging was to get 1000 subscribers which I achieved by a squeak. Ive already said I want to have a total of 5000 subscribers by the end of year two (March 2011). I dont know if that will be easy, hard or if its realistic. But since I met my goal last time Ive decided to ratchet it up a bit and go for 15,000 subscribers. I think if I set the goal higher Ill step up to the mark and achieve it. Even if I dont make it Ill be glad I tried. In case youre interested I also want to climb Mount Kilimanjaro. Id love to win the World Series of Poker but know that ones just a pipe dream. And as for the triathlon, thats no dream of mine but if thats what youre aiming for Ill support you all the way.

Importance of Planning
In any organization Planning plays an important part because of the numerous reasons listed below 1. Primacy of Planning Planning precedes all other managerial functions. Since managerial operations in organizing, staffing, directing, and controlling are designed to support the accomplishment of organizational objectives, planning logically precedes the execution of all other managerial functions. Although all the functions intermesh in practice as a system of action, planning is unique in that it establishes the objectives necessary for all group effort. All other functions are performed to achieve the objectives set b the planning process. 2. To Offset Uncertainty and Change There is continuous change in the environment and the organization has to work in accelerating change. This change is reflected in both tangible and intangible forms. Tangible changes are in the form of changes in technology, market forces, government regulations, etc. Intangible changes reflect in changes in attitudes, values, cultures, etc. In order to cope up with the requirements of such changes, organization must look ahead for its future course of action which is basically provided by planning process. Planning does not stop changes in the environment but gears the organization to take suitable actions so that it is successful in achieving its objectives. 3. To Focus Attention on Objectives Planning focuses on organizational objectives and direction of action for achieving these objectives. Sometimes people in the organization may not be specific about its

objectives because of lack of clarity and precise definitions. For example, often we take profit as the objective of a business organization. It is too abstract to be pursued. In order to enforce managerial actions, 1ihis should be defined more precisely. When planning action is taken, these objectives are made more concrete and tangible. The objectives are defined in more meaningful terms so that managerial actions are possible. For example, even if the organizational objective is profit earning, planning activity will specify how much profit is to be earned looking into all facilitating and constraining factors. 4. To Help in Coordination. Though all managerial functions lead to coordination in the organization, real beginning is made at the level of planning stage. Well considered overall plans unify interdepartmental activities and consequently restrict the area of freedom in the development of purely departmental plans. Thus, various departments work in accordance with the overall plan, and harmony is achieved. It is true to say that coordination is essence of management and planning is the base 5. To Help in Control Control involves the measurement of accomplishment of events against plans and the correction of deviations to assure the achievement of objectives as set by the plans. Thus, control is exercised in the context of planning action as standards against which actual results are to be compared are set up through planning. At the control stage, an attempt is made to monitor the performance on continuous basis so that immediate action is taken if anything goes wrong. 6. To Increase Organizational Effectiveness Planning ensures organizational effectiveness in several ways. The concept of effectiveness is that the organization is able to achieve its objectives within the given resources. Thus, for effectiveness, it is not only necessary that resources are gut to the best of their efficiency but also that they are put in a way which ensures their maximum contribution to organizational objectives. In fact, taking appropriate planning can do this. Planning states the objectives of the organization in the context of given resources. Therefore, each resource of the organization has a specific use at a particular time. Thus, planning along with control ensures that resources are put in action in a way in which these have been specified. If this is done, organization will achieve effectiveness.

Characteristics of Planning
1. Planning is goal-oriented.
a. b. Planning is made to achieve desired objective of business. The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected.

c. d.

Planning identifies the action that would lead to desired goals quickly & economically. It provides sense of direction to various activities. E.g. Maruti Udhyog is trying to capture once again Indian Car Market by launching diesel models. Planning is done for future. It requires peeping in future, analyzing it and predicting it. Thus planning is based on forecasting. A plan is a synthesis of forecast. It is a mental predisposition for things to happen in future. Planning is a mental exercise involving creative thinking, sound judgement and imagination. It is not a mere guesswork but a rotational thinking. A manager can prepare sound plans only if he has sound judgement, foresight and imagination. Planning is always based on goals, facts and considered estimates. Planning essentially involves choice among various alternatives. Therefore, if there is only one possible course of action, there is no need planning because there is no choice. Thus, decision making is an integral part of planning. A manager is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of the enterprises. Planning lays foundation for other functions of management. It serves as a guide for organizing, staffing, directing and controlling. All the functions of management are performed within the framework of plans laid out. Therefore planning is the basic or fundamental function of management. Planning is a never ending function due to the dynamic business environment. Plans are also prepared for specific period f time and at the end of that period, plans are subjected to revaluation and review in the light of new requirements and changing conditions. Planning never comes into end till the enterprise exists issues, problems may keep cropping up and they have to be tackled by planning effectively. It is required at all levels of management and in all departments of enterprise. Of course, the scope of planning may differ from one level to another. The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same. Planning leads to accompishment of objectives at the minimum possible cost. It avoids wastage of resources and ensures adequate and optimum utilization of resources. A plan is worthless or useless if it does not value the cost incurred on it. Therefore planning must lead to saving of time, effort and money. Planning leads to proper utilization of men, money, materials, methods and machines. Planning is done for the future. Since future is unpredictable, planning must provide enough room to cope with the changes in customers demand, competition, govt. policies etc. Under changed circumstances, the original plan of action must be revised and updated to male it more practical.

2. Planning is looking ahead.

a. b. c. d. e. a. b. c. d. a. b. c. d.

3. Planning is an intellectual process.

4. Planning involves choice & decision making.

5. Planning is the primary function of management / Primacy of Planning.

a. b. c. d. a. b. c.

6. Planning is a Continuous Process.

7. Planning is all Pervasive.

a. b. c.

8. Planning is designed for efficiency.

a. b. c. d. e. a. b. c.

9. Planning is Flexible.