What is management planning?
In an organization , management planning is the establishment of a strategy that allows to achieve a set of pre-established objectives . The result of the planning process is a plan that will guide the actions of the company and help to use resources in the most efficient way.
The plans must not be excessively detailed and must be realistic: their objectives must be attainable.
Within the planning process, the following steps can be identified:
- Set the objectives of the organization .
- Design possible future scenarios.
- Identify the most appropriate courses of action for each of these scenarios.
- Design a plan.
- Implement the plan.
- Evaluate the plan.
- Redapt the plan.
Principles of planning
The principles to keep in mind so that planning is useful are the following:
- Flexibility . The plan must be able to adapt to the changes that are registered within the organization, either because there were changes in the needs of the firm, in operations or at the managerial level.
- Inherencia . Every organization must have a plan that determines how to solve certain problems and thus achieve the objectives in the most efficient way possible.
- Rationality . It consists of understanding a problem and then determining the design criteria of the plan, the establishment of alternatives and its application. Decisions must be made based on logic and reason, not according to emotions and values.
- Universality . Plans must specify the amount of resources needed (considering the resources available within the company) to achieve the established objectives. Thus, once the design of the plan is finished, it can be implemented immediately.
- Unit . Each member of the firm will be assigned an objective that, in turn, should be guided towards a common goal . While there is a plan for each of the functions, they must all come together in a main plan.
- Commitment . To reach the goal, the time that will involve the commitment of each resource must be calculated.
- Accuracy . The plan must be exact, any error can affect the rest of the functions of the firm. The more accurate the plans, the greater the chances of achieving the objectives.
- Limiting factor . The plan must be designed considering that before each decision the limiting factor that can prevent the realization of the objectives must be established.
- Feasibility . Every plan must be realistic: designed based on experience, concrete facts and available resources.
Types of planning
There are different types of planning:
- Strategic . It is a long-term planning carried out by the managers of the organization. It analyzes how external and internal factors impact on the established objectives: advertising campaigns, presence in the media , market incursion, etc.
- Tactic . These are the plans that are designed to deal with a crisis and that is why they are linked to short-term decisions that respond to the strategic plan.
- Interactive . In this planning solutions are designed for problems that could arise in the future, identifying the resources needed to carry it forward.
- Regulations . It consists of a set of rules that regulate the operation of the organization indoors. This plan includes working hours, rest hours, vacations and staff uniform.
- Operational . This plan addresses the way in which resources will be organized, (including employees) for conflict resolution. In this plan, the projects for each area, the steps to follow and the deadlines for each are assigned.
Elements of planning
The elements that make up the planning are:
- Vision . What the firm plans to be in the long term.
- Mission . The purpose of the signature.
- Objectives . The results that the company intends to achieve. You should always detail the deadlines and the necessary actions, in addition to the objectives of each employee to focus their tasks to that end.
- Strategies . The description of the way in which efforts will be channeled to achieve the objectives. This includes those of the organization as a whole and those of each individual. A good plan always includes a series of alternatives to opt for the most appropriate in each circumstance.
- Policies . The guide that is designed to make the decisions of each of the areas of the company.
- Program . The series of actions that must be carried out to execute each part of the plan. You must detail the time it will take to specify each of the parts.
- Budget . The financial detail of what the implementation of a plan will cost. It helps keep track of its implementation as it details costs, revenues, expenses, etc.
Importance of planning
In administration , a well-designed plan translates into benefits for the company . On the one hand, it helps to allocate resources efficiently, especially for those activities that will enable the scope of the pre-established objectives.
Planning is key to focus efforts and helps identify what the tasks of each area and employee will be to achieve the objectives efficiently.
The administrative process represents the flow and interaction of planning, organization, management and control activities to achieve a common objective. All these activities aim to make the most of all the resources that the firm has available.
The use is not only reflected within the company but also takes into account the shareholders and the company. In other words, the administrative process seeks to meet your lucrative and social needs.