- Recognizing Need for Action: Being aware of business prospects in the firm’s external environment and within the firm is an essential aspect of the planning process. A realistic assessment of these new opportunities, as well as a SWOT analysis, is required.
- Setting Objectives: Departmental objectives will be more planned and precise than organizational objectives, which provide a general direction.Long-term and short-term goals are both possible.They specify the desired result for the company.
- Establishing Premises: Planning is always done with the future in mind, but the future is never guaranteed.As a result, certain assumptions will have to be made in the management function.The premises are these assumptions. Forecasts, existing plans, prior practices, and other factors are used to make such assumptions.
- Identifying Alternatives: There is no single way to meet the firm’s goals; instead, there are numerous options.All of these other options should be investigated.The manager must be able to choose from a variety of possibilities.
- Considering Alternative Plans of Action: The evaluation and detailed examination of each alternative design.Every alternative will be scrutinized, with all of its advantages and disadvantages assessed.The alternative plans must be assessed in the context of the organization’s goals.
- Choosing an Alternative: The most significant and most viable plan will now be picked and put into action.The optimal strategy is the most profitable with the fewest negative repercussions and the ability to adjust to changing circumstances.The decision is founded on scientific research and mathematical computations. However, a manager’s instincts and expertise should play a significant role in this selection.
- Creating a Backing Plan: Managers will need to develop one or more supporting plans once they’ve decided on the plan to implement. These supplementary plans aid the implementation of the main plan. Plans to hire more people, train employees, enlarge the office, and so on are examples of supporting plans for the main goal of launching a new product.
- The Plan’s Implementation: This is when all of the other management activities kick in, and the plan is put into action to fulfill the organization’s goals.The types of plans required for such implementation include procedures, policies, budgets, norms, and standards, among others.