Process or Steps of Planning

Process of Planning

 There are eight steps in the planning process. These are:

  1. Recognizing the need for planning;
  2. Determining the objectives;
  3. Forecasting the future;
  4. Determining alternatives
  5. Evaluating Alternatives
  6. Selecting a course of action
  7. Implementing the plan
  8. Revising the plan





Recognizing the need for planning:

It precedes planning and starts with intention of either solving a problem or attaining some objectives. Organizations require planning to use scarce resources efficiently, make the best use of opportunities and prepare for threats. It is because plans are considered future courses of action. Organizations have to look ahead to solve their problems.

Determining the objectives:

The second step in the planning process is establishing objectives for the organization and then for each subordinate/employee. Goals specify expected results and indicate the end point of what is to be done by the organization and its employees.



Forecasting the future:

Forecasting is built on certain assumptions about the future in which the plan is to carry out. The basis of forecasting is the understanding of markets, the prices. Which services need to be provided? which technological change could be? What population changes will there be?

Government publishes documents like the "Economic Survey" State Bank of Pakistan Report, Bureau of Statistics Census, etc.


Determining Alternatives:

It involves examining the alternative course of action. There would hardly be a plan for which alternatives do not exist.



Evaluating Alternatives:

Each alternative is evaluated or examined in terms of cost and benefits. One course of action may have high investment and little help in the short run. Other replacements may be risky and have more benefits.




Selecting one Alternative:

 At this point, the decision has to be taken to adopt an alternative from the various substitutes. The choice could be to pick one or more than one replacement, depending on the emphasis on objectives to be achieved and the cost. At this stage, Plans are incorporated into the budget. Budgets become means of tying up ideas.

Implementing Plan:

Implementation of a plan is the most crucial aspect. The implementation determines whether the idea was able to achieve the objectives or not.


Revising plan:

Planning as Rational Process

As indicated by the planning process, it is a rational approach to accomplishing objectives.





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