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Planning
Planning is the first function and the most crucial role of a manager. It is during this stage that managers evaluate the current conditions within the organization and the environment, and propose objectives on how the business can best perform under those circumstances. During this stage, managers identify conditions in both the internal and external environment, contemplate the desired objective of the organization, and create pathways that will allow the organization to accomplish those objectives.
The planning function allows managers to answer the five W’s for an organization – who, what, when, where, and why, as well as the how. Who will be affected by the objectives of the organizations? What responsibilities must everyone in the organization fulfill to accomplish these objectives? Where would be the best location for an organization to successfully achieve its objectives? When would be the ideal time for the organization to take action? Why should the organization execute these objectives, and how does it do so? By answering these questions, managers perform the planning function. They examine their environment, forecast future conditions, gather information, consider alternatives for attaining their objectives, and choose the best course of action from those alternatives. Because of the importance of this stage, managers are required to be good, reliable decision-makers for the organization.
There are three types of planning a manager can undertake:
Strategic Planning
The goal of strategic planning is to determine the long-term objectives of an organization. In this planning process, managers first identify the mission and vision of the organization. What is the purpose of the company? What does it want to achieve? And why are they driven to do what they do? To do this, managers conduct a SWOT analysis of the company and determine the best course of action to give the organization a competitive edge in the market. Typically, with strategic planning, the aim is to reach organizational goals and objectives in three to five years down the line.
Tactical Planning
Tactical planning involves breaking down a strategic plan into smaller, more manageable actions and plans that can be achieved within one to three years. During this stage, managers gather the means needed to implement the strategic plan. Tactical plans usually provide information such as who is in charge of each part of the implementation process, and the organizational do’s and don’ts for each role. Middle-level managers typically have a better understanding of the day-to-day operations, and will often engage in tactical planning.
Operational Planning
Operational planning guides the day-to-day operations of an organization. These plans outline the specific results that are expected from individuals, departments, and strategic business units across the organization. Well-established operational plans are precise, measurable, and time-bound. They list what actions must be taken for the organization to advance towards achieving strategic and tactical goals. Operational plans can either be designed for a single purpose (such as increasing sales, gaining subscribers, or meeting a productivity target) or for ongoing reasons (such as issuing as policies and procedures).
Planning is an important function to an organization because it guides managers through the other functions within the framework, favorably positions organizations within the market, and improves the chances of an organization’s success through goal-setting and implementation (Hill, 2018).