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Monday, April 21, 2014

planning meaning constraints/problems BBA

Questions: what are the problems of planning?
Answer:
In simple words, planning is deciding in advance what is to be done, when where, how and by whom it is to be done. Planning bridges the gap from where we are to where we want to go. It includes the selection of objectives, policies, procedures and programmes from among alternatives. A plan is a predetermined course of action to achieve a specified goal. It is an intellectual process characterized by thinking before doing. It is an attempt on the part of manager to anticipate the future in order to achieve better performance. Planning is the primary function of management.
Definitions of Planning
Different authors have given different definitions of planning from time to time. The main definitions of planning are as follows:
  • According to Alford and Beatt, "Planning is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action."
  • According to Theo Haimann, "Planning is deciding in advance what is to be done. When a manager plans, he projects a course of action for further attempting to achieve a consistent co-ordinate structure of operations aimed at the desired results.
  • According to Billy E. Goetz, "Planning is fundamentally choosing and a planning problem arises when an alternative course of action is discovered."
  • According to Koontz and O' Donnell, "Planning is an intellectual process, conscious determination of course of action, the basing of decision on purpose, facts and considered estimates."
  • According to Allen, "A plan is a trap laid to capture the future."
Constraints/ limitations/problems of planning
1.  Costly process:  planning involves too much expenditure. Money and effort both are required in planning. Planning includes collecting information, data forecasting and evaluation of alternatives. It requires salary and allowances to the experts in the process of providing services.
   So, planning has been accepted as costly process by small and medium size organization
2.  Time consuming:  planning is the time consuming process. It delays the business activity to come in action. In the process of planning following the procedures of planning takes a lot of time which may create problem to the organization where immediate action has to be made. So in such situation planning is not suitable.
3.  Unsuitable in emergency situation: as planning is time consuming, it is not suitable in emergency situation because quick decisions is desirable in emergency situation buts planning delays the emergency demand in organization
4.  Lack of reliable data and problem of accurate premises: For planning assumptions have to be developed for future action but future is uncertain and unpredictable. To make reliable data and accurate premises is necessary., in the lack of reliable data and accurate premises, there is chance of business lossand failure
5.  Problem of rapid change: Planning is the game of prediction. Rapid changes may occur in macro and micro level environment of business. planning is to be made in a flexible way to compress the plans in the future
6.  Internal rigidity:  internal rigidity may be related to organizational and human psychology policy, procedure and capital investment which create problem in the process of implementation. Staff may not like the changes that may occur frequently in the working procedure. So rigidity may create problem in planning.
7.  Encourage false sense of security: Planning encourages false sense of security against future risk and uncertainty. As future is uncertain, it is unpredictable. Therefore, planning cannot give accurate and reliable results.

conclusion: 


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