Q1:L7 - Definition and Nature of Planning

What is Planning

is a process that involves the setting of the organization’s goals, establishing strategies for accomplishing those goals, and developing plans of action or means that managers intend to use to achieve organizational goals

Goal-setting – the identification of targets or desired ends that management wants to reach

Vision – a mental image of what the organization will be in the future, as desired by the company management and employees

Mission – basic purpose of an organization and range of their operations

Objectives – steps needed in order to attain desired ends

Importance of Planning

1. Provides Direction

2. Reduces Uncertainty

3. Minimizes Waste

4. Establishes goals and standards

Difference between Goals and Plans

Goals are the targets or desired ends that management wants to reach, while plans are the actions or means that administrators/managers intend to use to achieve organizational goals. In short, goals serve as the foundation of planning. Goals precede plans because knowing the desired targets is a must before establishing plans for reaching them.