Planning Test - 2

Planning is a continuous process. It starts with setting the objectives and then putting them into action. One can ensure the proper implementation of plans with proper monitoring by comparing the actual results with expected. Thus it is the last step of planning process.

Programmes are a combination of goals, policies, procedures, rules. These are made to get a systematic working in the organisation.  e.g. development of new product, construction of shopping mall etc.

Objectives are the ends towards which all the activities are directed. Thus planning begins with objectives because all the policies, strategies, procedures etc. are formed to achieve objectives only.  Therefore the first step of planning is setting up the objectives.

Policy is the organisation's general response to a particular problem or situation. It is the organisation's own way of handling the problems. Thus hiring only university trained engineers is the example of policy.

Rules are the code of conduct or general instructions in any organisation. It specifies what to do and what not to do.  Thus rules maintain descipline in the organisation.

Methods are the systematic way of doing routine or repetitive jobs. e.g. method for valuation of stock, method of training etc.

Procedure involves to establish  required sequence of steps in advance to handle the future problems. e.g. procedure of selection of employees, procedure for admission in a school

To perdict Cash inflows comes from sales and other revenue generating activities and cash outflows in the form of expenses over a period of time, a type of budget is prepared which is called cash budget.

Planning only provides a base for analysing future.  Future is uncertain as business environment always keeps on changing. There may be a number of unknown factors that could have not predicted. Thus planning does not give guarantee success.

It means planning is futuristic.  Managers make predictions for future not for the past. The past is used as basis to make assumptions for future.