Estimated time of reading: 30 minutes
We understand by planning the process of defining the objectives of the organization, establishing a general strategy to achieve them and designing a series of plans to coordinate the activities. We will see how the strategy is formalized through the planning process in a series of practical application plans. The planning precedes the rest of the managerial functions (organization, direction and control). Once you have clarified what objectives and how (plan) you want to achieve, you are in a position to organize and direct available resources, and control is made possible.
To achieve a corporate objective, it will be implemented:
Through the establishment of objectives, the lower levels know what is expected of them from the higher levels and, through the control facilitated by the planning, the managers can know how the lower levels are developing their activity. «There is no favorable wind for those who do not know where they are going».
Let´s check the next group of slides to know more about de advantages of planning in business administration:
There are several criteria when classifying plans:
A small planning, with its own objectives, deadlines, resources and plans.
Numerical translation of the expected results.
A guideline that must be disclosed, understood and followed by all the members of the organization, in which the rules and responsibilities of each area of the organization are contemplated.
Set of actions or operations that have to be performed in the same way, to always obtain the same result under the same circumstances.
The planning process must be carried out sequentially following a series of stages, being in this case the problem to be solved by achieving the objective or objectives established.
The effort of all the members of the organization will be oriented towards the achievement of these goals.
Circumstances in which the plans will have to be developed.
Alternatives on how the marked objectives could be achieved taking into account the constraints found.
Express them in quantitative terms in order to evaluate them.
The best alternative is chosen.
Complementary plans that support the main plan.
Quantify plans by preparing budgets.
A continuous process of feedback is required to evaluate the development of the plans, detect possible deviations and, where appropriate, take the appropriate measures, which may include redoing any of the planning stages. All this constitutes the process of control.