Limitations of plnnning
Since planning is a dynamic process which involves making decisions currently about the future, its limitation is associated with the uncertainty of’ the future. For example availability of reliable data on Which planning is based. Absence of accurate data will upset the plan which is supposed to remove uncertaininity; planning is also an expensive and time consuming task.Koonth, O’Donnell and Weihrich identified the following major limitations by classifying into two categories, that are internal and external inflexibilities (limitations).
1. Internal Inflexibilities
- External Inflexibilities:
- Political climate
- Labour union
- Technological change
- Sociological & cultural constraints
-Educational variables
The limitations of planning may be overcome by applying more scientific measures and by introducing better systems of motivation. Planning is a must for every organization because unplanned operations produce choos and disorder universally without any exception. Therefore, if we are allure of the limits, we can avoid many of the frustrations and insufficiencies of planning.
The Planning Process
The following are the steps which sere as a general model which can be applied with some modification, to the planning processes of any organization. (Whether it be large or small, profit making or not-for-profit.
- Identifying and defining the real problem
An awareness of opportunities in the external environment as well as with in the organization is the real starting point for planning. We should take a preliminary look at possible future opportunities and see them clearly and completely, Iowa where we stand in the light of our strengths and weakness, understand what problems we wish to solve and why, and know what we expect to gain. Our setting of realistic objectives depends on this awareness planning requiring realistic diagnosis of the opportunity situation. - Establish clear-cut objectives
The next step in the planning process is to set objectives to the entire organization and to each work unit, not only for long term but also for the short range.Objectives specify the expected results and indicate the end point of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the net work of strategies, policies, procedures, rules, budgets, and programmes.
3.Establishing the planning premises
Premises are assumptions providing a background against which estimated events affecting the plan will take place. They are assumptions about the environment in which the plan is to be carried out knowledge of the organizations goals and existing condition provides a framework for defining which aspects of the environment will have the greatest influence on the originations ability to achieve its objectives. The purpose of environmental analysis is to identify ways to respond to changes in economic, technological, social/cultural & political/ and legal environments having indirect influence to the organizations plans. And for changes direct influences which have extended on the organization’s market, industry, suppliers. Competitors, or key resources and skills. Here, great consideration should be made to the assumptions regarding the future. Therefore, the assumptions and the constraints under which plans are to operate should be clearly brought about/established.
4.Identify Alternative Course Of Action
The fourth step in planning process is to find alternative course of action. We may have a number of and finding alternatives is not common problem, but reducing the number of alternatives so that selecting the most promising may bc analysed which requires the assessment of their probable consequences. Thus, the planner must usually make preliminary examination to discover the most fruitful possibilities.
5.Evaluating Alternative Courses
After identifying the alternatives, the next logical step is to evaluate each and every alterative by weighing them in light of the premises and goals. Once course may appear to be profitable but require a large out lay with a slow pay back; another may look less profitable but involves less risk; still another may better suit the company’s long range objectives but it is difficult to adopt it, etc. Therefore, make an adjustment for the forecast plan if any; see if the cost, speed, and quality requirements are satisfied and if mechanization expedite the work for the achievement of desired objectives in terms of each possible course of action.
6.Selectin a course of action best Alternative
After evaluating each alternative based on the goals and premises, the next step is to decide or select the best course of action that will help efficiently achieve the organization objectives. When we decide, we have to make sure that the plan possesses flexibility to adjust to varying conditions, acceptance of the plan by operating personnel as well as the existing capacity of the firm and need for new equipment, space personnel, training and supervision.
7.Formulating Derivative Plans
An arrangement of detailed sequence and timing should be made for the proposed plan. At the point when a decision is made, planning is seldom complete and certain arrangements should be made that support the basic plan of action chosen, that is, identification of the derivative plans that support the major plan of action, the sequence of the activities necessary to accomplish the desired aim, other details required to implement the plan should be ascertained.
8.Numberizing Plans by Budgeting
After decisions arc made and plans are set, the final step is to give them meaning that is to numberize plans by converting them to budgets, this helps to establish verifiable targets of achievement, to facilitate control and evaluation. The planner should be able to arrange for sufficient reports and records over a reasonable period to be collected to inform proper management members and measure results as well as what remedial action could be proposed if results indicate weakness when plans are in action.