Planning is a method to achieve goals. According to Henry Foyol, “Planning is chalking out a plan of action. i.e., the result envisaged in the line of action to be followed. The stages are to go through the methods to use”.
In other words, Planning is a purposeful activity as it involves determining various decisions and actions to be performed for achieving the goals of the organisation.
Process of Planning:
- Setting up objectives
- Provides directions: It means to provide directions to employees for their roles and responsibilities in an organisation.
- Reduces the Risk Uncertainty: It helps to overcome uncertainties
- Reduces overlapping and wasteful activities : planning evaluates the uses of available and prospective resources of the business
- Promotes innovative Ideas: planning makes the people innovative and creative
- Facilitates Decision Making: It helps to facilitate the Decision making by taking courses of action
- Establishes standards for controlling: It has controlling ability to suggest remedial measures.
Limitations of Planning:
- Reduces creativity: when we start working rigidly according to a plan, we might miss some creative opportunities that has come our way otherwise.
- Involves Huge costs: It involves huge cost because it is an intellectual process so that companies hires only professional experts
- Time consuming Process: Lot of time is needed to develop the planning process.
- Not sure to get success: Planning is only analysing the future not the solution.