Planning process means to prepare for the future. The future outcomes are determined by the organizational plans of the present (Zwikael & Globerson, 2006). The planning is the most critical and essential function of the management. The focus in planning is to create innovative ideas, and set the objectives that are to be achieved in the future. The process begins with the analysis of situations. This situation analysis is done for the purpose of gathering the outcomes of the past, and the present situation. This analysis helps the company in determining was is to be done in the future. Working on the plan the goals are then evaluated on the constant basis. The following of those plans and implementing it to succeed is monitored by the company (Yetman, 2004). The planning is sometimes done on account of pressures that are created from the external environment (Stuart & Tax, 1996). There should be constant performance on the part of the management if the company is to meet its plans. The purpose of this research paper is to evaluate the benefits that are underlying the planning and the weaknesses that organizations find exposed onto. The paper will highlight the significance of planning.
Planning is an analysis and documentation of the strategies that are to be used in the future and typical problems that can affect the plans. The planning is not just the prediction of the future it involves the changes within the organization. For the formulation of the plans it is important that the organizational changes required in various segments, like portfolio, risk management, and other departments are monitored (Schonsleben, 2007). The studies from O Regan & Ghobadian (2002) argues that planning is the disciplined effort on the part of the company in what it does, how it will do for shaping the future. The goals to be achieved are organized by the company so that the organizational performance is improved. However, is should be noted that the stakes for successful planning strategies are higher. The success of the strategic plans is linked to the implementation (Noble, 1999).
Positives of Planning
The first and foremost benefits of planning are the determination of the targets. The very structure on which the organizational goals will be formalized and will be implemented is pin pointed with the help planning. The planning process makes the tasks more clarified to the organizational as a whole and therefore it is not restrained to the top management only. The work focus of the employees can therefore be diverted on more specific tasks (Lewis, 2001). The productivity improves as the identification of redundancies and mistakes happen during implementation of plans. The guess work in the planning stage helps the company rectifying the mistakes and acts as guidance (Alexander, 1998). It is due to the compelling of the planning act that a blue print of what is to be done is prepared by the manager.
The purpose of planning is to look for the uncertain elements. The uncertainty creates the risks that are sometime too large for the organizations to handle if they are also contingent in nature. Planning is therefore the anticipation of those future events in the search of viable options to reduce those uncertainties. Johnston & Brennan (1996) argue that if the management perceptions and plans work it can bring optimum solutions to the problems that would have otherwise costed the company very dearly. The involvement of all the employees for the common objectives and the communication between the employees improves the co-ordination that inturn benefits the company. Effective co-ordination can pull put the loopholes in the employees functioning and therefore it benefits the employee’s performance.
Negatives of Planning
Planning in organizations is having its own limitations as well. The biggest criticism for planning has been on account of the inflexibility it creates in the organization. The policies and the plans are pre determined and set, therefore it becomes difficult to include changes sometimes in those cases. These limits the individual innovative ideas in the organization once the process of implementation of the plans have started. This creates the sense of de motivation among the employees as their ideas sometimes go unheard. The flexibility of the organization depends on the employees and that gets reduced once the employees are not innovative. The other critical element on which the planning process has been criticized is the lack of direction in the plans (Kerzner, 2006). The plans might end up serving individual interests and values rather than the interest of the organization. There is a fear of biasness that prevails in the planning. Individuals especially at the top of the spectrum can use the planning and implementation stages for their own personal benefits (Greer & Ruhe, 2004).
Organizational planning process is also criticized on the consumption of time. The time consumption is sometimes dependent on the size and departments of the organization, it can be dependent on the solutions and options available. Lot of options creates the sense of uncertainty if it is used at the time of crisis situation. Planning is the process that involves estimating the future. The predictions for the future on the contrary keep dwindling. This makes the problems all the more aggressive and typical. Finances of the company is involved in every stage of planning therefore failure of the plans creates problems for the organization. Planning also depends heavily on the external climate, which means in case of any natural, political, cultural ir technological changes the company can suffer.
The research paper discussed about all the aspects that form the merits and demerits of the planning. The anticipation of future for the purpose of minimizing the risks is the whole concept of planning. The co-ordination and motivation levels of employees can be improved if the planning is done in the right sense and direction. Taking into account the negatives the study mentions that there are some problems like employees lack of interest and de motivation factors that can act against the plans of the organization but it is important to note that non planning is far more dangerous.
Planning creates viable options for the company even if it is based on the understanding of the managers or the probability of the organization. The economies of scale can be achieved due to the planning process. Non planning for the future on the contrary can hit the company harder and can even take it near to the extinct state. Planning takes the company in the right direction if done effectively. The dynamic nature of businesses these days are ensuring that the focus on planning must be there. A constant performance up gradation exercise can be done by the company on the basis of the effective planning.
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