Planning is the process of goal setting; developing the approach to achieve those goals; outlining activities; prioritizing them; and creating a schedule that brings us closer to the goals that we set.
It is impossible to achieve such control without the right planning. Therefore, planning becomes necessary to keep good control. Being goal-centric is the key. It keeps working hard to fulfil these goals.
Browse more Topics under Planning
- Introduction, Meaning, Importance, Features & Limitations of Planning
- Planning Process
- Types of Plan
Prerequisites of Effective Planning:
1.Defined objectives:
Objectives are like goal setting. You can’t walk the path if you don’t know where it leads you. Objectives should be reachable, objective and definable. If possible, attach numbers, timelines, and even resources to these objectives. This will ensure a sense of direction for the organization and facilitate control and coordination.
2. Management Information System:
For the development of plans, a collection of data, analysis, and selection of the right alternative is needed. Well, the MIS Systems are the future of most successful companies now. It is the companies that give an edge to data and analysis to make data-driven decisions that make it big in their sectors.
3. Top-Level Initiative:
To make planning effective they originate at the top. These layers exist to ensure that a company runs like a well-oiled machine. In this situation, the work of the top level management is to visualize and chase those dreams to then pass it on to their teams further The top management should generate interest in planning throughout the organization.
A good manager always enables his/her team member to manage themselves. If a team is self-run, there’s nothing like it. This can be achieved by management by objectives, the formation of planning committees and the preparation of budgets.
4. Planning should be Flexible:
Its execution should be oriented to events. In case of changing events alternate or contingency plans should be kept ready for changes. They should be developed step by step.
5. Resistant to Changes:
There is always going to be push back when there is a need for change but the extermination of old gives way to the new. Only when there is a change can we expect exponential growth. And change is never easy to accept or work with. Which is why it is important for the management to ensure smooth transitions.
6. Careful Premising:
In planning premising is an important step. It is a pre-requisite for determining future settings. In setting planning premises due consideration is to be given for various factors based on the needs of the organization.
7. Integration of Long-Term and Short-Term Plans:
Both short and long term plans are to be prepared and integrated to achieve the objectives of the organization. They should be prepared and integrated to achieve the objectives of the organization. Perfect coordination between the two types of planning is to be achieved.
8. Cost-Benefit Analysis:
The planners are to undertake a cost-benefit analysis to ensure that the benefits of planning are more than the cost involved in it.
9. Proper Forecasting:
One of the important steps in planning is the forecasting of the future. Management must have a mechanism of forecasting changes in the environment which are influenced by economic, social, political and international factors.
10. Dynamic Managers:
Rigidity leaves no space for modifications and growth. Which is why it’s highly important for managers to grow and fix while working and be flexible to the environment.
Solved Example on Prerequisites of Effective Planning
Q: Why is having objectives important?
Objectives are like goal setting. You can’t walk the path if you don’t know where it leads you. Objectives should be reachable, objective and definable. If possible, attach numbers, timelines, and even resources to these objectives. This will ensure a sense of direction for the organization and facilitate control and coordination.
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