Here is a compilation of term papers on ‘Planning’ for class 11 and 12. Find paragraphs, long and short term papers on ‘Planning’ especially written for school and college students.
Term Paper on Planning
Term Paper Contents:
- Term Paper on the Introduction to Planning
- Term Paper on the Definition of Planning
- Term Paper on the Characteristics or Nature of Planning
- Term Paper on the Principles of Planning
- Term Paper on the Kinds of Planning
- Term Paper on the Steps in Planning
- Term Paper on the Importance and Advantages of Planning
- Term Paper on the Limitations of Planning
Term Paper # 1. Introduction to Planning:
Planning is the primary function of management. The process of planning involves the conscious determination of future course of action to achieve the desired results. Future cannot be predicted exactly and it can be guessed to a certain extent. Planning is deliberate and conscious research used to formulate the design and sequence of actions through which the organisation is expected to achieve its objectives.
It is thus, a process of thinking before doing. Planning involves choosing one of the various alternatives available for accomplishing the desired results with economy and certainty. It sketches a complete picture of things yet to happen in the enterprise through the process of looking ahead.
Planning bridges the gap between where we are and where we want to go. That is it links the present with the future. It is the mental process requiring the use of intellectual faculties, imagination, foresight and sound judgement.
There are two essential aspects of planning:
(i) Selecting targets or goals to be achieved in future.
(ii) Selecting and designing appropriate techniques and procedures that will be instrumental in achieving the objectives.
Term Paper # 2. Definition of Planning:
Various authorities on management have defined management.
Some of the definitions are given below:
Koontz and O’Donnell:
“Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action and basing of decisions on purpose, knowledge and considered estimates”.
Louis A. Allen defines a plan “is a trap laid to capture the future”.
W.H.Newman “Planning is deciding in advance what is to be done”.
George R.Terry defines “Planning is the selecting and relating of facts and the making and the using of assumptions regarding the future in the visualisation and formalisation of proposed activities believed necessary to achieve desired results.”
Theo Haimann defines planning as “deciding in advance what is to be done. When a manager plans, he projects a course of action for the future, attempting to achieve a consistent, co-ordinated structure of operations aimed at the desired results.”
George R.Terry “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualisation and formulation of proposed activities, believed necessary to achieve the desired results.”
So planning is the most basic of all management functions as it involves deciding of future course of action. It logically precedes the execution of all other managerial functions as the other functions of management are reflected by proper planning. Planning is unique in the sense that it establishes the objectives for the group effort and lays down steps to accomplish them before the manager proceeds to perform other functions.
Planning is the preparatory step for action. “It ensures proper utilisation of both material and human resources in the achievement of objectives. Planning is the opposite of improvising. It is organised foresight plus corrective hind sight”.
It is a device for change to meet the future. It is a blueprint for a future course of action. Thus, it is an intellectual exercise of looking into the future. It means planning decides in advance the activities to be performed in future and also visualises the best course of action to achieve the desired objectives. Planning leads to decision making and controlling.
Term Paper # 3. Characteristics or Nature of Planning:
On the basis of foregoing definitions of planning specified above its various characteristics can be identified as follows:
(1) Primary Function:
It is the primary function of management as it precedes all other functions. Without setting goals to be achieved and line of action to be followed the other functions of management, organising, staffing, directing and controlling the activities of the enterprise become useless. Infact all other functions of management largely depends on planning.
(2) A Dynamic Process:
This means planning is a continuous process as it keeps changing based on circumstances. A plan is decided on the basis of some assumptions which may not come true in the future. The manager is to modify, revise and adjust the plans according to circumstances. Further one plan begets another plan to be followed by a series of plans in quick succession. So planning is a continuous activity and it is a never ending process.
(3) Planning is Related to Objective:
Every plan specifies the objectives to be achieved in the future and the steps necessary to reach them. Planning is related to objectives. It involves the setting up of the objectives to be achieved and determining the techniques for achieving those objectives. All the activities of the organisation are channelised towards of achieving the established objectives. So planning gives definition to performance.
(4) Planning is a Selective Process:
Planning is a choice activity. The planning process involves finding of alternatives and selection of the best alternative in achieving specified objectives. Thus, decision making is an integral part of planning. George R.Terry has described planning as the process of selecting and relating facts in visualisation and formation of proposed activities believed necessary to achieve the desired results.
(5) Planning is an Intellectual Activity:
It involves vision and foresightedness to decide the performance for the future. It involves use of mental skills for the achievement of group objectives. Managers have to consider various courses of action, achieve the desired goals, discuss in detail the pros and cons of every course of action and then finally decide about the action which suits the organisation.
(5) Planning is Forward Looking:
Planning means looking ahead. It is implemented to achieve some objectives in future. It facilitates the manager to handle future events with effortless ease. Thus, planning is futuristic in nature as in the present what is to be done in the future.
(6) Planning is Based on Facts:
It is a conscious determination of and projecting a course of action for the future and it is based on facts, objectives and considered forecasts. It is not a guess work.
(7) Planning is Pervasive:
It is incorrect to consider planning as a top management function. Planning is performed by managers at all levels, only the scope of planning varies based on the level he occupies in the hierarchy. Similarly every manager has to involve himself in decision making. A manager plans when he decides.
(8) Planning Creates Dynamism:
Planning commits the organisation to a particular course of action. Once a course of action is selected flexibility vanishes. But when a particular action is proved incorrect adopting to a new course of action is taken up based on the needs of the requirements. This need based functioning introduces flexibility in performance.
(9) Planning Aims at Efficiency:
It is stated planning gives a sense of commitment to the organisation in achieving objectives. Achievement of objectives leads to optimum handling of resources which results in efficiency. Efficiency leads to economy and accuracy.
(10) Planning Achieves Co-Ordination:
A plan for an organisation is translated downwards from top to bottom. This ensures a co-ordinated functioning of the organisation as a whole.
Term Paper # 4. Principles of Planning:
In management literature only a very few authorities like Koontz, O’Donnell and Weihrich have attempted to identify and codify the interrelated principles of planning. The following principles have been advocated by Koontz and O’Donnell.
They have classified the principles of planning into three groups:
(1) Principles dealing with purpose and nature of planning.
(2) The structure of plans and
(3) The process of planning.
(1) Principles of Purpose and Nature:
(a) Principle of Contribution of Objectives:
It means the purpose of every plan and all derivative plans facilitate the accomplishment of enterprise objectives.
(b) Principle of Efficiency Plans:
Efficiency of a plan is evaluated by correlating the plan with its achievement of objectives in the light of economy and accuracy.
(c) Primary Principle:
It means planning logically precedes the execution of all other managerial functions.
(2) The Structure of Plans:
There are three major principles that deal with the structure of plans and they facilitate co-ordination.
They are:
(i) Principle of Planning Premises:
The more individuals charged with planning understand and agree to utilise consistent planning premises will facilitate the co-ordinated functioning.
(ii) Principle of Strategy and Policy Framework:
Clearly understood strategies and policies of the organisation will facilitate and provide a consistent and effective framework for organisation plans.
(iii) Principle of Timing:
Economic and effective implementation of plans will result in the achievement of organisational objectives. Normally plans are divided into long-term, short-term and medium-term ones. They are interrelated and their integrated approach is necessary. All these plans are structured to provide appropriate timing and they should facilitate the timely accomplishment of objectives.
(3) Principles Connected with the Process of Planning:
There are four principles of planning process and their understanding will facilitate to develop a science of planning:
(i) The Principle of Limiting Factor:
It is the essence of decision making. The managers while developing plans will always focus on limiting or critical factors (manpower, money, machines, material and management) to know their capabilities for performance. This will facilitate them to go in self- introspection and develop better plans.
(ii) Commitment Principle:
It will facilitates the managers to know the commitments involved in decisions regarding plans.
(iii) Principle of Flexibility:
It means the imbedding of the element of flexibility in plans with the object of meeting the changed situations.
(iv) Principle of Navigational Change:
It means the sense of dynamism to be infected in the plans as and when the change in the course of action is needed. Built-in-plan flexibility does not mean that plans get revised automatically. It is the responsibility of the manager to adapt and change direction of his plans to meet the challenges of constantly changing environment which could not be foreseen.
Term Paper # 5. Kinds of Planning:
Planning is classified into different groups which are as follows:
1. On the Basis of Scope Planning:
On the basis of scope planning they are called as strategic and functional plans. Strategic planning is for the organisation. It is also known as corporate planning. This means the management determines the general objectives of the enterprise and the steps necessary to accomplish them with the available resources currently and likely to be available in the future. Functional planning covers functional areas like production, marketing, finance and purchasing.
2. On the Basis of Duration Plans:
Duration plans are divided into three types:
(a) Long-Range Plans:
Also known as long-term plans. The duration of the plan covers long periods may be 5 years or more. They set the long-term goals for the enterprise. It has specific plans for achieving certain goals. It considers long-term economic, social and technological factors as well as their influence on long term objectives of the organisation. It involves the commitment of resources for long term. There is always an element of uncertainty in long term plans.
(b) Medium Term Planning:
Other name Intermediate Planning. The duration ranges between one to five years. This is more detailed and specific than long-term planning. This is used for projects with a specific purposes.
(c) Short Term Planning:
Such planning normally covers a short period usually a year or less than a year. It is concerned with the determination of short-term objectives to accomplish long-term objectives. It is related to a short period. It specifies a detailed outline of certain specific activities to be completed with a specified time limit. It may be called as activity planning.
3. Based on Stability Plans:
Stability plans are classified as Ad hoc and Standing Plan. A standing plan is designed to be used over and over again. They include organisational structure, standard procedures, standard method etc.; Ad hoc planning is taken up to meet emergencies and special situations.
4. On the Basis of Evolution Planning:
Evolution planning may be classified as formal and informal planning.
Formal planning is developed by the management systematically. They specify in black and white the goals to be achieved and the steps to be taken to achieve them. They also facilitate the installation of internal control systems. Informal planning is thinking by some individuals which form the basis of formal planning in future.
5. On the Basis of Levels:
Planning may be classified on the basis of levels.
(a) Top Level Planning:
Top level planning is developed by top management. It encompasses the long-term objectives and policies of the organisation and it concerned with the results of the organisation.
(b) Middle Level Planning:
Middle level planning is done by the middle level managers or departmental heads. They are of short term nature and the orientation is towards functions and departments.
(c) Lower Level Planning:
Other names operational or activity planning. It is short term in nature. It is modified as and when needed based on requirements of the situation.
Term Paper # 6. Steps in Planning:
Planning is an intellectual exercise and it is a conscious pre-determination of future course of action which are necessary to be considered in the preparation of plans. Collection of various facts, its analysis and effective decision making are the steps in planning.
Though it is difficult to list out the steps in planning for every organisation but an attempt can be made to give an effective idea about the steps in planning:
1. Analysis of Environment:
Business environment refers to those surroundings of business enterprise which affect its operation and determine its effectiveness. According to Keith Davis, “Business environment is the aggregate of all conditions, events and influences that surround and affect it. The environment of business consists of al I those external things to which it is exposed and by which it may be influenced directly or indirectly”.
So business environment is a wide term and it includes a number of factors such as social, economic, political, technological etc., which are constantly changing and are full of risks or uncertainties which are outside the control of management.
The environment is divided into two groups known as external and internal. The external factors relate to socio-economic-cum political conditions prevailing in the country. These factors are unpredictable and uncontrollable. The plans are to be designed to meet the changing trends in external environment.
The internal environments relate to men, machines, materials, know-how finance etc. The resource audit or the self-appraisal is the essence of planning as they will facilitate the organisation to handle situations with effortless ease.
2. Definition of Enterprise Mission:
It is the duty of the top management to define the corporate mission. Mission statement describes the fundamental reason for the existence of an organisation and it provides the best climate for successful planning. The mission relates to a brief sketch of the business which specifies the present position of the business, its future, the nature of customers, an analysis of customers and the social obligations of the business etc.
3. Determination of Objectives:
The third step in planning is the statement of objectives which are to be specified in key areas of business. They are to be translated downwards. They must be realistic and measurable. They give a decisive definition for performance.
4. Forecasting the Planning Premises:
Forecasting is an important step in planning. It is a systematic attempt to probe the future with the help of known facts relating to the past and the present. Forecasting is needed for establishing planning premises. Planning premises are actually assumptions and predictions about the future. They are the environment of plans in operation and they form the basis for planning.
The forecasting technique involves the following steps:
(i) Development of the basis through systematic investigation of the economy, industry and products.
(ii) Estimation of future business operations.
(iii) Regulation of forecasts by focusing on deviations.
(iv) Review of the forecasting process.
5. Evaluation of alternatives:
In the light of planning premises and objectives various alternative course of action is to be considered. Out of the alternatives developed the best course of action is to be selected. After this the management is to decide the sequence of activities.
6. Implementation and Review:
Having decided the sequence of operations the next step is to implement the plan by determining the role to be played by various segments in the organisation. The management is to monitor and see that the implementation was done as it was desired. This feedback will facilitate the management to take the necessary corrective actions.
So the steps involved in the planning process can be outlined as:
(i) Analysis of Environment
(ii) Establishment of objectives
(iii) Forecasting and
(iv) Decision making.
Term Paper # 7. Importance and Advantages of Planning:
Planning is an activity of a highly ubiquitous character. Planning provides a rational approach to predetermined objectives as it requires a lot of systematic mental exercise on the part of Planners. Every function in business is planned in all enterprises with the object of ensuring proper utilisation of human and material resources to achieve the business objectives. Without proper planning the functioning of the organisation is likely to be more haphazard. Planning is a must for achieving a consistent and coordinated structure of operations focused on desired objectives.
Good planning can result in the following advantages:
1. Focuses Attention on Objectives:
Planning is directed towards achieving enterprise objectives the main focus of planning is objectives of the organisation. Determination of clear cut and well-defined objectives is the first step in planning. If the objectives are clearly laid down the execution of plans will be directed towards the achievement of these objectives.
2. Ensures Economy in Performance:
Planning is a mental exercise which is directed towards achieving efficient operations by optimum use of resources. This leads to minimising costs which results in economy of operations.
3. Planning Reduces Uncertainty:
Planning is connected with future. Future is full of uncertainties. Planning gives an opportunity to the manager to foresee uncertainties. Sufficient provision is made in the plans to offset these uncertainties.
4. Planning Facilitates Control:
Planning and control are inseparable. Control is in the nature of evaluation of plans. It focuses on correlation performance in the light of objectives and concentrates on deviations. Planning helps control by furnishing standards of control.
5. Planning Encourages Innovation and Creativity:
Planning is looking ahead about the future. The managers must be in a position to foresee future and be prepared to face challenges posed by the uncertainties of the future. So in drafting and designing a plan for the future and in meeting contingencies the managers are to demonstrate their innovation and creativity.
6. Planning Improves Motivation:
Good planning ensures the participation of all managers at various levels. Further the employees know clearly what is expected of them. This is specified by the plans. So the involvement of managers in planning and communication with employees promote motivation.
7. Improves Competing Potentials:
Normally plans are decided after considering the strength and weaknesses of organisation. So before developing a plan a self-introspection of the organisation is made. So the managers will be aware of their potentials and try to improve their competing potentials.
8. Achieves Better Co-Ordination:
Planning serves unity of direction towards the organisational objectives. All activities are directed towards the common objectives. There is an integrated effort throughout the organisation. This facilitates co-ordination.
9. Planning is the Basis for Decentralisation:
Delegation is possible only when the superiors know well in advance regarding the potentials of the delegates. Well-established plans serve as guides to subordinates and reduce the risk involved in delegation of authority. This facilitates decentralization. Further planning helps to improve the motivation and morale of employees by providing targets for performance.
Term Paper # 8. Limitations of Planning:
Planning plays an important role in directing the organisational activity. It is a primary function of management and has pervasive character. But it should always be kept in mind that planning is only a means to achieve certain objectives but it is not an end in itself. It is an intellectual exercise, but it cannot replace thinking and judgement. There are certain problems, barriers and limitations to planning. Every manager is to understand limitations to make planning effective, useful and purposeful.
The limitations to planning are:
1. Inaccurate:
Planning relies on forecasting. Forecasting is based on available facts and figures. Planning loses its value if reliable information is not available or if the planner fails to utilise the reliable information. If reliable forecast and data are available accuracy in planning can be ensured. Otherwise planning becomes unrealistic.
2. Internal Inflexibilities:
In the planning process managers face a set of variables which lead to inflexibilities in planning. These inflexibilities are classified into internal and external inflexibilities. Internal inflexibilities may be psychological, policy and procedures and capital investment. External inflexibilities may be political climate, trade unions and technological changes.
Psychological inflexibilities lies in the form of resistance to change. Both employees and managers resist to change as they believe that present is more desirable and acceptable rather than the new plan. So managers while instituting new plans may face objections. This is due to unwillingness of people to accept changes.
Policy and Procedural Inflexibilities:
Establishing policies and procedures may create inflexibilities. Policies and procedures are established to streamline administrative procedures. They leave little scope for managerial initiative and flexibility. The bureaucratic set-up always gives importance to rules and procedures. So the employees may not accept new plans and procedures.
Capital investment in fixed assets commits the organisation to a particular course which is difficult to change. This inflexibility continues during the entire life of fixed assets unless or otherwise the organisation changes its course of action or affords to write-off the investment.
3. External Inflexibilities:
The external inflexibilities to be considered are: social, economical, political and technological changes. The managers have little or no control over such forces.
Three environmental factors which generate inflexibilities in organisational planning are:
(a) Political climate
(b) Trade unions and
(c) Technological changes.
a. Political Climate:
This means the government attitude to business, taxation policy, regulation of business etc. These generate constraints on the organisational planning. Any change in these variables lead to changes in planning process.
b. Trade Unions:
Trade unions which are recognised and organised on national level resist any activity taken up by the management. Any changes made with reference to performance are to be communicated to the employees and with the approval of the union’s changes to be implemented. If the changes are not approved then they are to be modified for peaceful execution. To this extent, the management is not free to take decision of its choice.
c. Technological Changes:
An organisation works smoothly with the existing technology. Change in technology creates lot of problems in the organisation. The organisation faces financial problems, problems of higher cost of production, lesser competing potentials and displacement of skilled workers. Though normally planning is capable of meeting changes in technology it cannot approve of frequent changes in its technology. So change in technology affects planning.
Rapid changes in external environment affect planning. In rapidly changing conditions planning of one period cannot be relevant for another period as the conditions in the two periods are quite different.
4. Time Consuming and Costly:
Planning is a time consuming and costly operation.
It is time consuming because it needs lot of time for collection of data, analysis of data, evaluation of alternatives, developing supporting plans and forecasting. The managers are to take sufficient time to make planning realistic. Further this detailed ground-work involves cost. This cannot be undertaken by organisations with limited financial resources and by incompetent people.
5. Personal Factors:
The personal factors which are responsible for wrong planning or inadequate planning are:
Lack of commitment to planning, failure to formulate sound strategies, lack of clear and well defined objectives, tendency to overlook planning premises, failure to see planning as a rational approach, too much reliance on past experience, lack of support of the top management, lack of delegation of authority, lack of adequate control techniques.