Planning can be defined as “thinking in advance what is to be done, when it is to be done, how it is to be one and by whom it is to be done”. Planning bridges the gap between present position and future situation.
1. Setting up of the objectives. In planning function manager begins with setting up of objectives because all the policies, procedures and methods framed for achieving objectives only. The managers set up very clearly the objectives of the company keeping in mind the goals of the company and the physical and financial resources of the company.
2. Listing the various alternatives for achieving the objectives. After setting up of objectives the managers make a list of alternatives through which the organisation can achieve its objective and managers must know all the ways to reach the objectives.
3. Developing premises for each alternative. Premises mean assumptions regarding future whenever the managers are listing out the alternative way s to reach the objective. For each alternative managers make some assumptions.
4. Selection of best alternative. After making the list of various alternatives along with the assumptions supporting them, the manager starts evaluating each and every alternative and notes down the positive and negative aspects of every alternative.
5. Formulation of supportive or derivative plans. After preparing the main plan, the organisation prepares number of small plans to support the main plan and these plans are derived from main plan. These plans are performance oriented and are required to accomplish the objective of the main task. The common supportive plans are to buy an equipment, raw materials, recruitment & selection of employees and so on.
6. Put the plan in action: For implementing the plans or putting the plans into action, the managers start communicating the plans to the employees very clearly as they are the ones to carry out the plan with given specification. After communicating...