Planning is the systematic process of setting the objective of the business and deciding on the best course of action to take to achieve the goal.

It is the first function of management and it comes before organizing.

Just like there are four main p's of marketing, there are 6 p's of planning, namely: purpose, philosophy, premise, policies, policies and priorities.

1. Purpose: A popular dictum stays "When the purpose of a thing is not known, abuse is inevitable".

This is equally true of planning. For planning to be effective, a clear understanding of the purpose for which planning is done is required.

Planning requires an understanding of the organizational purpose.

That is, the reason for the existence of the organization must be determined.

Is it to make more money, create more jobs, gain market share, or create new products?

A proper understanding of the purpose of the organization will ensure that the plans made in the organization are geared toward achieving the purpose

2. Philosophy: Every organization has a philosophy, which is the fundamental belief about how the organization's objectives should be accomplished.

For example, a company's philosophy could be to achieve profitability by providing high-quality services.

However, for long term growth, a philosophy of ethical conduct must be adopted by an organization.

3. Premise: This is the evaluation of the strength and weaknesses of an organization based on the knowledge and assumptions of the environment.

With the use of business forecasting and other methods for anticipating future changes in the business environment, some conclusions can be obtained in this regard.

As a result, when an organization's management is aware of the organization's strengths and weaknesses, it can more effectively deal with changes in the business environment.

4. Policies: These are the general statements or guidelines that aid managerial thinking and doing.

They are broad declarations or guidelines that influence administrative or managerial decision-making.

A typical organization has numerous policies that govern management's actions. Such policies are financial policies, production policies, accounting policies, human resource policies, and marketing policies.

These policies aid managers in their daily operations and decision-making.

5. Plans: These are general frameworks that outline how a company intends to accomplish its goals.

A plan consists of specific objectives and action statements. Objectives are the goals to be met while action statements are the means to achieve these goals.

Plans provide a step-by-step framework for achieving organizational goals while also keeping track of the organizational progress toward those goals at various stages.

6. Priorities: The organization has several goals it wants to achieve at any given time.

As economists would recommend, each organization's goals must be prioritized on a scale of importance, with the most important goal receiving more attention and resources and the less important goal receiving less attention and resources

Because the organization's resources, such as capital, manpower, and material, are always limited, they must be allocated based on the priorities set by the organization.

This enables the organization to focus more resources on its most important priorities

The priority of organizational goals must be determined in light of the organization's philosophy and premises, as well as the economic, social, and political environment.

A research-oriented organization, for example, will prioritize and allocate resources differently from a profit-oriented business.

There you have it! Got questions relating to this post? Do well to ask me in the comment box.

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