5)  What are the steps involved in Planning Process?


1. Goal setting:

Plans are the means to achieve certain ends or objec­tives.

Therefore, establishment of organizational or overall objectives is the first step in planning. 

Setting objectives is the most crucial part of planning. 

The organizational objectives should be set in key areas of operations.


2. Developing the planning

Before plans are prepared then assumptions and conditions underlying them must be clearly defined these assumptions are called planning premises and they can be identified through accurate forecasting of likely future events.

They are vital to the success of planning as they supply per tenant facts about future. 

They need revision with changes in the situa­tion. 

Contingent plans may be prepared for alternate situations.

3. Reviewing Limitations

In practice, several constraints or limitations affect the ability of an organization to achieve its objectives. 

The key areas of Imitations are finance, human resources, materials, power and machinery. 

The strong and weak points of the enterprise should be correctly assessed.


4.Deciding the planning 

Once the broad goals, planning premises and limitations are laid down, the next step is to decide the period of planning. 

The planning period should be long enough to permit the fulfillment of the commitments involved in a decision.

5. Formulation of policies

After the goals are defined and planning premises are identified, management can formulate poli­cies

The res­ponsibility for laying down policies and strategies lies usually with management. 

But, the subordinates should be consulted as they are to implement the policies and strategies.




6. Strategies of Planning

7. Preparing operating plans:

After the formulation of overall operat­ing plans, the derivative or supporting plans are prepared. 

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.


8. Integration of plans:

Different plans must be properly balanced so that they support one another. 

Review and revision may be necessary before the plan is put into operation. 

Moreover, the various plans must be communicated and explained to those responsible for putting them into practice.