What is a Limitations of Planning

The Difficulties or Criticisms which are involved in planning process can be described as follows:

• Uncertainty of future events: It is one of the biggest difficulties of planning process. It is matter of fact that planning is related with forecasting of future events in an advance manner. And we know that future is uncertain & risk-oriented what will happen tomorrow we can’t say with certainty, but we can predict about future events through planning. But it is not important the predictions which are made by us will be in accurate form. Hence, it is clear that there is a fear of uncertainty of future conditions in planning.

• Costly Process: It also creates a huge problem in course of making plans of an organization. Planning refers to an expensive process because it requires a lot of investment of money as well as effort. Infect, planning involves collection of information & data from different source & environment so that experts are needed to put into work in this field which makes planning process more expensive. Thus, it is clear that planning is a costly process.

• Time Consuming Process: Planning is the time consuming process. Because planning requires a lot of time for thinking, evaluating the business conditions and drawing the final plan and so in case emergency or important decision is required it will take optimum time and business will lose its golden opportunity. As a result business organization cannot be run smoothly for a long period.

• Lack of Accuracy: There is lack of proper accuracy in planning. Because we know that panning is based on future & future is always uncertain & unpredictable what will occur tomorrow we can’t say with certainty. Thus to make reliable data and accurate prediction is too necessary. In the absence of reliable data & accurate prediction, there is chance of business loss and failure. On the whole it is clear that there is lack of proper accuracy in planning.

• Difficulty in the Selection of the best Alternative: It is one of the greatest demerits of planning. Infect, planning provides a large number of alternatives to organization to perform its events or activities in the best form. But it is not possible for organization to select the best alternative among st the various alternatives because organization has no clear idea about the best alternatives, due to large appearance of alternative courses. So that it is clear, there is difficulty in the selection of the best alternative course in planning.

• Limited Flexibility: There is lack of required flexibility in planning. It is matter of fact that in organization every personnel are bound to do their assigned tasks according to preset plans of organization. Hence, in case the personnel face the difficulties in course of executing the tasks then they have no rights to bring changes in the plans of organization on the sport. Thus it is clear; there is lack of required flexibility in planning. 

• Psychological Barriers: Psychological Barriers are also creating great difficulties in course of making business plans. In every organization upper level managers give the priority to present events in comparison to future events because present is more certain & beneficial to organization rather than future. But on the other hand we know that planning relates to forecasting of future events in advance manner. Hence, how can it possible that managers will give important to present. On the whole we can say that there is conflict in manager’s mind about plnning due to psychological differences.

Limitations of planning from Management Study Online

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What is a Process of Planning

Either planning may be large or short from the point of view of organization but every organization want to make more effective and economical plans. Hence, to make more effective and economical plans every organization has to take a strong action or step which is termed as process of planning.

The Important Steps or Techniques or process of Planning:

• Determination of Goals or Objectives: At first step which is involved in planning process that is none other than the determination of Goals or Objectives of Organization. It is matter of fact that in organization all the various activities are done according to plan with a view to attain the primary Goals or Objectives of organization. Hence, in the absence of Goals or Objectives of Organization there is no need to do plans towards any activity. On the whole it is clear that determination of Goals or Objectives of Organization is one of the most essential steps of planning.

• Determination of Planning Premises: After determining goals or objectives of organization the next step which is taken under planning process is to determine planning premises. Premises may be depicted as criteria on which assumptions are made by organization with accuracy for bringing certainty in future events. Premises may be classified into two terms, internal premises & external premises. Internal Premises – Premises which is related to internal events of organization is called as internal premises. For Example – Premises regarding man power or other resources. External Premises – Premises which is related to external events of organization is known as external premises. For example – Premises against political, social & government issues.

• Determining alternative course of action: After establishing planning premises the next step is to set the alternatives course of action. It is matter of fact that an action may be performed by many ways but there is an appropriate way to perform actions which is most suitable for particular organization. It is the duty of management to find out these alternatives & examine them carefully in the light of planning premises. On the other hand in the absence of alternative courses any organization cannot able to perform its actions in easy way.

• Evaluating alternative courses: After the determination of alternative course of action the next step is to evaluate these alternatives in the light of goals or objectives of organization. It is a complex process of planning. Because it is not possible for organization to select the best alternative among all the alternatives by evaluating each of them carefully in the light of goals of organization. But despite of all this complexity it is an important process of planning.

• Formulating Secondary Plan: After selecting the best alternative course of action the next step which is involved in planning process has to formulate Secondary plans. Secondary plans are made by lower level managers of organization to eliminate the problems which are grown up in course of executing all the various activities.

• Determining Participation of Employees: The successful execution of plans properly depends upon the whole hearted co-operation of the employees. In the absence of coordinating approach among the employees any organization cannot able to attain its primary goals in the best and cheapest way. Thus, it is clear that this is an essential step of planning.

• Establishing the strategy: Strategy is the vital part & parcel of planning because whenever an organization face the difficulties in course of executing the secondary plans then organization has to make strategy plans on the basis of fundamental plans of organization to avoid the problems. Hence, it is too important that every organization should make strategy plans to face future uncertainty & risk. 

• Follow Up: It is the last but one of the most important step of planning. Because it is too easy for any organization to make its own plans but the hard thing is to follow the plans carefully for the achievement of its own goals. Infect, without following the plans carefully any organization cannot able to attain its goals in a proper way. Hence, it is clear that success & failure of every plans & organization as well depend on this process.

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What is a Types of Planning

There are various types of planning which are properly depending upon the conditions & the application time of planning. These are as follows:

On the basis of period planning can be divided as:

• Short-term planning: Short-term planning may be described as such plan which is prepared by any individual, firm or industry for a very short duration of time; such as daily, weekly, monthly, quarterly, half-yearly & Yearly basis. The purpose of these planning is to wind up the contemporary problems of organization. 

• Long-term or perspective planning: Long term planning may be described as a plan which is prepared by any individual, firm or industry for a long duration of time; such as plan which is made for 10 years, 15 years & 20 Years. The purpose of these planning is to gain goals of enterprise in the proper way.

On the basis of management level planning can be divided as:

• Top Level Planning: Top level planning can be described as such plan which is made by top level management of organization. This kind of planning is generally made by general manager of organization. 

• Middle Level Planning: Middle level planning may be described as such plan which is made by middle level managers of organization. It is generally adopted by organization as an instrument to achieve its primary goals in the most proper way. This kind of planning is made by the departmental managers of organization. 

• Lower Level Planning: Lower level planning may be depicted as such plan which is made by lower level managers of organization. It is generally prepared by supervisor of organization & also directly concerned with the activities which are performed by personnel of enterprise. 

On the basis of environment planning:

• Internal Plans: Internal plans can be described as such plans which is done by organization for its internal activities. for example - plans for human resource. The above example concerns with internal activity. Hence, it is termed as internal plans. 

• External Plans: External plans can be described as such plans which is done by organization for its external activities. for operating and controlling the external activities organization has to make external plans. for example - sales plans, purchase plans, both examples are related with external activities. Hence, plans for these activities are termed as external plans. 

On the basis of use planning can be divided into two forms:

• Standing use plans: Standing use plans are one of the most important type of planning. This is generally prepared by the top level managers of organization. Standing use planning is the foundation of organization activities because over all activities of organization are based on this plan. In fact, it provides a proper guidance to the personnel to understand their tasks & encourage them to perform tasks accordingly, towards the result-oriented works. This plan is, termed as standing use planning because it cannot be changed according to the business conditions. These are rigid. For example:- Objectives of organization, Policies of organization, Rules etc. 

• Single use plans: Single use plans are also the important type of planning. This type of planning is adopted by organization for removing specific problems. Single use plans are flexible in nature this means it can be changed according to the conditions of business. While the business’s problems are removed then the importance of these plans is declined. For example- Budgets & programs, both are made by organization for removing specific problems. Hence, budgets and programs are termed as single use plans. 

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What is a Objectives of Planning

The essential objectives of planning in business organization can be described as follows:

• To bring certainty in future events: Planning provides a proper guidance to an organization how to bring certainty in future events for the achievement of organizational goals. As we know that future is uncertain & risk-oriented. What will occur tomorrow we cannot say with certainty, Hence to avoid these future uncertainties & to bring certainty in future events organization has to make plan.

• To provide specific direction: Planning provides a specific direction for doing various activities in an appropriate manner.

• Forecasting: Forecasting is the essence of planning. The objective of planning is to predict about the future course of events.

• To bring economy in managerial operations: It is an important objective of planning. Planning provides a proper guidance to an organization how to bring economy in all around operations. So that, organisation can easily utilizes all available resources in the best & cheapest way.

• To attain predetermined goals: It is one of the most essential objectives of planning. In fact, in the absence of planning any organization cannot able to achieve its predetermined goals in a proper way.

• To get victory over competitions: Planning provides a proper guidance to an organization how to get victory over market competitions.

Objectives of planning from Management Study online

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What is a Importance of Planning

Planning has gained an essential place in the field of business management. Because now-a-days every organization use to make plan for doing various activities in the most appropriate manner. In fact in the absence of planning any organization cannot able to attain its primary objectives in the best and cheapest way. on the whole it is clear that planning is one of the most important part & parcel of business organization.

The importance of planning can be described as below:

• Planning reduces uncertainty of future events: Planning plays an important role in the reduction of future uncertainty of an event. It is matter of fact that future is uncertain and risk-oriented. What will occur tomorrow we cannot say with certainty but we can forecast about future events through planning. Hence, to avoid these future uncertainty and risk every organization has to make plan. Thus we can say that planning reduces uncertainty of future events.

• Planning makes objectives clear and specific: Planning provides a huge guidance to an organization by making its objectives more clear and specific. As we know that in organization all the events or activities are done by the personnel with view to achieve primary objectives of organization, hence if the objectives of organization is not clearly defined then as a result the personnel cannot able to do their assigned tasks in proper way. Hence, we can say planning makes objectives clear and specific. 

• Planning brings economy in operations: Planning provides a proper guidance to an organization by bringing economy in all around operations of organization. It is matter of fact that every organization has done its works on the basis of adopting plan so that organization cannot face any difficulties in course of executing the whole operations and as a result the cost of operations will be reduced. Thus it is clear that planning brings economy in operations of organization.

• Planning provides the basis of control: Planning provides the basis of control to an organization. In fact in the absence of planning any organization cannot able to make its controlling process. Because we know in controlling process every action are performed or decisions are taken by keeping in view to plan of organization. In the absence of planning organization cannot able to keep on its controlling process for a long while. On the whole it is clear that planning is the basis of controlling process.

• Planning establishes unity & co-ordination: Planning plays a significant role in the establishment of unity & co-ordination among st various resources. Either it may be like man, material, money & all other resources. It provides the proper information to an organization how to integrate all the resources by the proper utilization of man power towards the achievements of primary goals of organization. Therefore, planning establishes unity & co-ordination among st resources.

• Planning takes optimum utilization of available resources: Planning plays an essential role to take optimum utilization of available resources. In fact, it integrates the whole available resources in such a manner, so that the personnel cannot face any problems in course of getting optimum benefits from available resources. Hence, we can say that planning helps to take optimum utilization of available resources.  

• Planning helps to control hasty decisions: Planning provides a great scope for controlling hasty decisions which is often taken by organization without making up the mind. It is matter of fact that planning provides a large number of alternatives to an organization to perform various activities in the best & cheapest way. Hence, if organization will select the best alternative courses & perform activities accordingly then organization can easily control hasty decisions.                               

• For development of organization: Planning plays a vital in the development of organization. Because it is matter of fact that in organization all the events are done according to planning, hence if the planning of organization will sound then organization can smoothly obtain its goals. As a result organization will be developed by leaps & bounds; on the other hand if the planning of Organisation will not sound then organization cannot obtain its goals easily & as a result organization will not be developed properly. Thus, it is clear that planning helps in the development of organization.

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Definition of Planning And its Features

In simple sense whatever we decide in advance for doing any future events, is termed as planning. For Example:- if i would want to go to Delhi tomorrow then. I will have to make plan either i will go by bus or by train. Hence, it is clear that planning is done for doing future events not past.

              According to managerial language planning may be defined as a forward looking process. Which is adopted by an organization with view to bring certainty in the present events or activities so that, organization may have more confidence regarding the accuracy of future events. Hence, it is clarify that planning is directly concerned with the forecasting of future events.

Features of Planning:

• Goal-Oriented Approach: The features of planning can put to be a goal oriented approach because it is directly related with goals of organization. In the absence of goals or targets we can not assume about planning because within the organization all the various activities are done with a view to attain the primary goals of organization. In fact in the lack of goals there is no need to do plan towards any activity. On the whole we can say; planning is a goal oriented approach.

• Forward Looking Process: It is a salient feature of planning. Planning is forward looking process because it is directly concerned with forecasting of future events. The purpose of every plan is to determine the future events with a view to bring certainty in the present activities of the organization. Thus we can say that planning is forward looking process.

• Choice Making Activity: Planning can set to be a choice making activity because planning provides a large number of alternative courses to an organization to do a various activities in the most appropriate manner. It is matter of fact that an action may be performed by many ways but there is particular way to perform an action which is most appropriate to organization. Planning provides these alternatives to organization to perform its various actions in the most proper way. Thus, planning is a choice making activity.

• Primary Function: The feature of planning refers to primary function because planning is the first task of business management. All other functions of business management such as organizing, staffing, directing & controlling are done after completing the planning. Infect, whenever we are going to do any event or activity at first we make plan & accordingly we will perform to attain result oriented work. Thus we can say to plan as primary function.

• Planning is a Continuous Process: Planning can put to be a continuous process because it is not an event which is concerned with the point of time. It is needed every walk of life of an organisation. Infect, in the absence of planning any organisation cannot able to take even one step properly. Thus, it is clear that planning is a continuous process.

• Pervasive Function: It is a unique feature of planning. Planning is a pervasive function because it can universally applicable at all the levels of management either it may be like top level of management, middle level of management or lower level of management. In fact planning is the function of all managers. So that, planning is a pervasive function.

• Planning is a Dynamic process: Planning can be treated as a dynamic process because it is affected if any changes are made in the internal & external environment of organization. Such as if the goals of organization will change then it also affects the plans of organization. Similarly in external environment if any changes are made in the government policy, regarding business then it also affects the plans of organization. Therefore, it is clear that planning can put to be as a dynamic process.

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Difference between Standing Plans & Single use Plans

Basis	Standing Use plans	Single Use Plans
Meaning	Standing use plans may be defined as a long term approachable plan which is prepared by the top level managers of organization.	Where as single use plans may be defined as a short term approachable this is prepared by the lower level managers of organization.
Objectives	The objective of Standing Use Plans is to attain the primary goals of organization.	Where as the objective of Single Use Plans is to attain to the specific goals or to remove the specific problems of organization.
Nature	Standing Use Plans are stable in nature. It cannot be changed at any cost.	On the other hand Single Use Plans are flexible in nature & it can be changed as per the conditions of organization.
Basis	Standing Use Plans are based upon the primary objectives of organization	On the other hand Single Use Plans are based upon the standing use plans of organization.
Types	Standing Use Plans has five types – (1) Objectives, (2) Polices, (3) Rules, (4) Procedures, (5) Strategies.	On the other hand Single Use Plans has only two types – (1) Budgets (2) Programs.
To Prepare	Standing Use Plans are mainly prepared by the Top level managers of organization.	On the other hand Single Use Plans are mainly prepared by the Lower level managers of organization.
Period	Standing Use Plans are made for a long duration of time. For example – Objectives of organization, Policy of organization etc.	Where as Single Use Plans are made for a very short duration of time. For example – Programs of organization, Budgets of organization.

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