Steps Involved in Planning Process

In this topic, you will learn about, Steps Involved in the Planning Process.


  1. The essence of planning is looking ahead. It is always concerned with the future.
  2. It involves every predetermines course of actions.
  3. The course of action is determined after a careful study of an alternative course.
  4. It is a continuous and integrated process.
  5. It has always a dimension of time.
  6. Its main objective is to achieve better results.


  1. Planning eliminates future uncertainty and change.
  2. Planning helps in management by objective. OBJECTIVES: planning is the first step or element in setting the goals and objectives for the organization as a whole and for all its components. This gives a scene of direction to the working of organization and saves it from going hay ware.
  3. Thus, planning helps the organization in better coordination.
  4. The economy in operation (No Wastage).
  5. It helps in controlling.
  6. It encourages innovations and creativity.
  7. It improves motivation.
  8. It improves competitive strength.


Determination of objective: the objective should be for the whole organization. Then the objective must be broken down to the department, sections, and individuals. For the success of a business organization setting an objective is very important it indicates the end point of what is to be done, where an emphasis is to be placed and what is to be accomplished.

Management by Objectives (M.B.O): it was first used in an organization by Peter Drucker for efficient operation of an organization goals/objectives are set at the different hierarchy level. Different hierarchy levels need to integrate with each other for achieving the ultimate objectives goals of the business organization. It means that it needs not to control it with each other.
In today global challenging environment management by objectives has now become much more important and relevant. Management by objective has become a comprehensive management planning and control technique and is bound to affect.

Organization structure culture and style: Management by objectives call for regulating the entire process of managing in terms of meaningful, specific and viable objectives at different levels of the management hierarchy.

MANAGEMENT BY OBJECTIVES (Features and characteristics):

  1. The concept of MBO is based upon the basic assumption that all human activities are normally goal oriented. This is equally true in the case of a business organization also.
  2. MBO focus on the goal and their achievements.
  3. MBO should be clear, no ambiguity and the management and the management should try to integrate their individual goals with those of organizational objectives.
  4. MBO tries to relate the long-range goals of the organizations with the short-range goals overall systems goals with the goals of various subsystems and the organization goal with the goals of society. It is in this way an attempt is made to integrate not only the various sub-systems of the organization internally but also the organization as such with its external environment and with future
  5. MBO places emphasis on various goals but it also emphasis on the effective performance and tangible results also.
  6. The philosophy of MBO views an organization as dynamic entities. Consistent attention is given to define the performance or modify and improve the performance of the organization on the basis of past experiences.

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