The Role of Planning in Enterprise Management

the activities required to achieve a desired goal.
Planning bridges the

gap from where we are and to where we want to go. It is in essence the exercise of foresight.

and doubt to rule
Determine organizational goals
Define the means of achieving

them
Guidelines for decision making
Small picture and Big picture
More proactive than reactive
Look into the future
Focus attention on goals and results
Create ownership
Develop the appropriate team
Keep on eye on the competition

Reasons why it’s a good idea for managers to plan:

from the planning function

will go about achieving that goal

goal

Increasing sales
Improving customer service

of resources to achieve these goals.
It is carried at higher

level of management
It is long term
Based on long-term forecasting considering the possible impact of political, economical, technological and competitive factors and is more uncertain
It is less detailed

It decides the detailed use of resources for achieving these goals
It is carried at lower level of management
It is short term
Generally based on past performance of the organization and is less uncertain

It is more detailed

than one year period (usually 3 to 5 years but

it can extend even to 50 years).
Middle term planning usually covers 1 to 3 years.
Short term planning usually covers one year. Short term plans are made with reference to long term plans because short term plans contribute to long term plans.

By time period involved:

of likely changes of environment. Managers adopting proactive changes do

not wait for environment to change, but take action in advance of environmental changes. For this, continuous scanning of environment is necessary.
In reactive planning response comes after environmental changes take place. By the time organization responds to change in environment there may be further change in environment. Hence this type of planning is suitable in the environment which is fairly stable over a long period of time.

By approach adopted: