Planning Process of Management

Summary:

The techniques of decision-making covered include marginal analysis, financial analysis, break-even analysis, ratio analysis, operations research techniques, linear programming, decision-tree method, game theory, and simulation. These techniques provide tools for evaluating alternatives, optimizing resource allocation, and analyzing possible outcomes.

Management by Objectives (MBO) is the process of setting goals for employees to align their actions with organizational objectives. It enhances communication, establishes hierarchies, and promotes a positive work environment, increasing motivation and commitment.

Forecasting is the process of predicting the future based on available information. It helps with production scheduling, inventory management, cost reduction, optimized transport logistics, and enhancing customer satisfaction. However, forecasting has limitations, such as relying on inaccurate information and the potential for unexpected market changes.

Policies and procedures play a crucial role in guiding organizational decision-making and actions. Policies outline the organization’s principles and rules, while procedures provide specific steps for implementing those policies. Policies focus on the organization’s vision and goals, while procedures serve as a roadmap for achieving them.

Excerpt:

Planning Process of Management

Contents:- planning, concept, objectives, nature, limitations, planning process, importance, forms, techniques and process of decision making, objectives, tools.

Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who will do it. It is an intellectual process that lays down an organization’s objectives and develops various courses of action, by which the organization can achieve those objectives. It chalks out exactly, how to attain a specific goal.

Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision-making. Planning is the first primary function of management that precedes all other functions. The planning function involves deciding what to do and how it is to be done. So managers focus a lot of their attention on planning and the planning process.