Planning deals with decisions about objectives, tasks and use of resources before implementation. It ensures that the sphere of business was considered and chosen right, the right things are done at the right time and in the right way (effectively and efficiently).
Planning instruments and organization of activities
There are a number of instruments for planning tailored to the specific requirements for the sphere of business, organization and management of activities within the company. They are used to make certain processes easier to predict, to exclude unplanned negative results, to find the funds and generally to allow the optimal use of resources (financial, technical and human).
There are different forms of planning, including:
- Strategic planning, which is a programming of the main orientations of the enterprise in the long term;
- Operational planning, which is the programming of short-term objectives. It answers the questions: why? or? how? and at what cost?
Relationships between planning and sharing of responsibilities.
Nowadays many of the small businesses are, most often, managed on a day-to-day basis. One day the boss taking “real time” decisions that the grounds that seem obvious to him. It is a fact that this way of acting is not always beneficial for the enterprise, but it is possible, particularly for the following reasons:
- Information circuits inside the company, following executing-boss-executing scheme, are extremely
- Activities of the enterprise are, in most cases, relatively concern a “niche” product-market
- Equipment of the company
Finally, is generally that all the decisions affecting them – in particular investment decisions – support delays.
How does the boss of the small business take his decisions? Perhaps it follows some relatively permanent guiding ideas? Maybe he has “flair” or just luck? These issues are his personal business and he must be ready to respond and support the consequences of his actions.
Strategic planning – mode or need?
There are many things to consider before choosing the sphere of business. Is it possible to allocate or obtain resources (material, financial, human, etc.) independently? Should the entrepreneur find partners? Each reason is distinguished by markets (a need to satisfy and a visible clientele), identical competitors and finally technologies specific.
Planning in business is a process that identifies the objectives to be achieved and the steps to implement. Three major types of planning are to be mentioned at this level. Strategic planning that spans more than five years and where the leader determines the mission, the general objectives of the company and the strategy (s) possible.
Detailed, coordinated plans for production, marketing and human resources must be developed. Operational planning that spans less than one year and where the lower-level staff define the tasks to be accomplished the programs, projects, operations and activities specific to their organizational units.
To have effective plans, managers must follow a process of planning, summed up in the following steps:
- Analysis of the situation
- Formulation of objectives and mission
- Strategy development and evaluation
- Choice of business strategy
If the entrepreneur follows some good ideas, or if luck smiles on him, his business grows and becomes a larger enterprise. Then it becomes necessary to structure it in a few units. However, the boss is still in “direct grip” on managers. It seems that these are, in the strict sense of the word, the decision functions that belong to the management functions; these are the functions that need to be organized in the framework of consultation, of delegation which is that of the management of the company.
These are the functions that cannot be entrusted to no one but the leaders and managers of the company, each in its own field (functional structure of the firm) and each one at his level (structure of responsibilities).
As for the functions of innovation and economic studies, they could, without serious consequences, be entrusted to specialized agencies.
Once strategic planning is developed, the management is required to:
- Define the tasks to be accomplished
- Develop the workflow
- Implement the strategy