Nature of planning and control

All operations require plans and require controlling, although the degree of formality and detail may vary. To understand more fully the nature of planning and control, we will discuss the difference between planning and control, how the supply and demand affect planning and control, and the planning and control activities.

Nature of planning and control

What is Planning and its Nature, Importance, and Types We have already been introduced to five essential managerial functions, namely, planning, organizing, staffing, leading and controlling.

This is also the widely accepted conceptual framework of management. Planning is the most basic of all managerial functions.

Nature of Planning The following facts come to light about its nature and features: Management begins with planning and planning begins with the determining of objectives.

It is the process by which managers establish goals and define the methods by which these goals are to be attained.

Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making, which is choosing from among alternative future courses of action.

Planning is thus taken as the foundation for future activities. It may also be treated as a process of thinking before doing. Planning involves determining various types and volumes of physical and other resources to be acquired from outside, to allocate these resources in an efficient manner among competing claims and to make arrangement for systematic conversion of these resources into useful outputs.

As it is clear from the above discussion, plans have two basic components: Goals represent an end state — the targets and results that managers hope to achieve.

Operations Management – The Nature Of Planning And Control (1) Notes

Action statements represent the means by which an organization goes ahead to attain its goals. Planning is a deliberate and conscious act by means of which managers determine a course of action for pursuing a specific goal.

Planning to a manager means thinking about what is to be done, who is going to do it, and how and when he will do it. It also involves thinking about past events retrospectively and about future opportunities and impending threats prospectively. Planning enquirers about organizational strengths and weaknesses and involves decision making about desired ways and means to achieve them.

There are, however, differences between decision making and planning. Decisions can be made without planning but planning cannot be done without making decisions. Nature of Planning The nature of planning can be understood by examining its four major aspects.

It is pervasiveness, and The efficiency of resulting plans. An organized enterprise exists to accomplish group objectives through willing and purposeful co-operation.

Planning quite logically, therefore, comes first before executing of all other managerial functions as it involves establishing the objectives necessary for all group efforts. Also, all the other managerial functions must be planned if they are to be effective.

Likewise, planning and controlling are inextricably bound up. Control without a plan is meaningless because the plan provides the basis or standard of control.

Pervasiveness of Planning Planning is a unique and universal function of all managers. The effectiveness of a plan relates to the extent to which it accomplishes the objectives.

The efficiency of the plan, however, means its contribution to the purpose and objectives, offset by the costs and other factors required to formulate and operate it. Plans are efficient if they achieve their objective at a reasonable cost when such a cost is the measure not only in terms of time, money or production but also in terms of satisfaction of the individual or group.

Nature of planning and control

Both conceptual and practical reasons are put forward in support of planning. Two conceptual reasons supporting systematic planning by managers are limited resources and an uncertain environment.

Meeting the Challenge of Resource Scarcity Resource scarcity is a very important consideration for any organization today. There would be no need for planning if material, financial and human resources were unlimited and cheap.

Planners in both private business and public agencies are challenged to stretch their limited resources through intelligent planning. Otherwise, wasteful inefficiencies would give rise to higher prices, severe shortages, and great public dissatisfaction.

Facing Environmental Uncertainty The second most important conceptual reason is that organizations continually face environmental uncertainty in the course of accomplishing the tasks. Organizations meet this challenge largely through planning safeguard. Besides, managers have several practical reasons for formulating plans for themselves, their employees, and various organizational units, viz.

Planning and Performance Although organizations that use formal planning do not always outperform those that do not plan, most studies show positive relationships between planning and performance.

Effective planning and implementation play a greater part in high performance than does the amount of planning done. Studies have shown that when formal planning has not led to higher performance, the external environment is often the reason.

The Role of Goals and Plans in Planning Planning is often called the primary management function because it establishes the basis for all other functions. Planning involves two important elements: Goals often called objectives are desired outcomes for individuals, groups, or entire organizations.

There are many types of the plan; Hierarchical Plans: These plans are drawn at three major hierarchical levels, namely, the institutional, the managerial and the technical core.If planning and control is the process of reconciling demand with supply, then the nature of the decisions taken to plan and control an operation will depend on both the nature of demand.

1 Operations Management, 5E: Chapter 10,11 en12 1 Lecture 5 Planning and Control 10 The nature of Planning and Control 11 Capacity Planning and Control 12 Inventory Planning and Control. B) Supply and demand affect planning and control C) Planning and control activities Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

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The contribution of Planning to the Attainment of Objectives

What is Planning and its Nature, Importance, and Types We have already been introduced to five essential managerial functions, namely, planning, organizing, staffing, leading and controlling. This is also the widely accepted conceptual framework of management. The Nature of Planning.

and Control Planning and control is concerned with the reconciliation between What is what the market requires and what the operations resources can deliver.

Nature of planning and control

Planning and Planning and control activities provide the systems, procedures Control and divisions which bring different aspects of supply and demand.

Planning and control activities provide the systems, procedures, and decisions which bring different aspects of supply and demand together Difference between planning and control Planning concerns what should happen in the future and control copes with changes.

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