7 Processes Of Planning

1. Setting up of objectives: Setting up of objective is 1st step of planning. Plans are prepared with a view to achieve certain goals. Hence, establishing the objectives is an important step in the process of planning. Plans should reflect the enterprise’s objectives. Objectives should clearly define as to what is to be achieved by policies, procedures, rules, strategies, budgets and programs. Plan must make sure that every activity undertaken contributes to the achievement of objectives.

2. Developing premises: This is the second step in planning. Premises include actual forecast data, policies and plans of the enterprise. Planning involves looking into the future which necessitates the enterprise to know, how future conditions will affect its activities. Thus, forecasting is an important step in planning. There are two types of forecasting namely,

• Prediction of general economic conditions.

• Prediction of market conditions for a specific product or service dealt with by the enterprises.

3.Listing various alternatives: Listing various alternative  is the third step in the planning process. The planner should study all the alternatives, consider the strong and weak points of them and finally select the most promising ones.

4.Evaluating different alternatives: Alternative selected should be evaluated in the light of premises and goals. Evaluation involves the study of performance of various actions. Various factors such as profitability, investment requirements, etc., of such alternatives should be weighed against each other. Each alternative should be closely studied to determine its suitability.

5. Selecting an alternative: After having evaluated the different alternatives, the most suitable alternative is selected. With this, the plan can be considered to have been adopted. It is exactly the point at which decisions are made. Sometimes, in the best interests of the enterprise, several alternative courses can be adopted.

6. Implementing the plan: Implementing of plans is the final step in the process of planning. This involves putting the plans into action so as to achieve the business objectives Implementation of plans requires establishment of policies, procedures, standards, budgets, etc.

7. Follow up: This is the final step of planning process.After implementing the plan feedback is needed and new plan is to be drawn as per the requirements.