The planning process clearly defines and maps out the guidelines for smooth operations of a business in order to achieve their main goals/objective. Since planning is an activity there are certain logical steps for every manager to follow.
- Setting Objectives: Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation. Objectives or goals specify what the organisation wants to achieve.
- Developing Premises: A manager is required to make certain assumptions about the future. These assumptions are called premises. Assumptions are the base material upon which plans are to be drawn.
- Identifying alternative courses of action: All the alternative courses of action should be identified. The course of action which may be taken could be either routine or innovative. An innovative course may be adopted by involving more people and sharing their ideas.
- Evaluating alternative courses: The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved. Alternatives are evaluated in the light of their feasibility and consequences.
- Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences.
- Implement the plan: The step is concerned with putting the plan into action i.e., doing what is required.
- Follow up Action: Monitoring the plans is equally important to ensure that objectives are achieved.
