Stages in the process of planning

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

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 the opportunities perceived Establishment of goals is influenced by the values and beliefs of executives, mission of the organization, organizational resources, etc.

1. Goal setting
objectives must be clear, specific and informative Major objectives should be broken into departmental, sectional and individual objectives. to set realistic objectives, planners must be fully aware of the opportunities and problems that the enterprise is likely to face.

2. Developing the planning premises

Before plans are prepared, the assumptions and conditions underlying them must be clearly defined assumptions are called planning premises They are forecast data of a factual nature. Analysis of internal (controllable) and external (uncontrollable) forces is essential

3. Reviewing Limitations
several constraints or limitations affect the ability of an organization to achieve its objectives they must be anticipated and provided for. The key areas of Imitations are finance, human resources, materials, power and machinery.

4. Deciding the planning period

The planning period should be long enough to permit the fulfilment of the commitments involved 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.

5. Formulation of policies and strategies

The responsibility for laying down policies and strategies 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 and quantitative techniques are useful in the development and evaluation of alternatives.

6. Preparing operating plans

Several medium range and short-range plans are required to implement policies and strategies. These plans consist of procedures, programmers, schedules, budgets and rules. Such plans are required for the implementation of basic plans. Operational plans reflect commitments as to methods, time, money, etc.

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 putting them into practice.

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.