The process of planning consists of a series of interrelated steps which varies depending on the size and complexity of the organization. The basic eight steps involved in the process of planning are –
1. Analysis of opportunities – Planning starts with analysis of opportunites in the external environment as well as written the organization. Goals can be set only when a proper scanning of the environment, that reveals the opportunities that exist.
2. Establishing Objectives – The next step in planning process involves establishing objectives for the whole organization, and for the different departments. Organisational objectives provide direction to the major plans
3. Determining planning Premises – Planning premises refer to the environment in which the plans are to be implemented,. The task of determining premises should only be continued to those aspects that are critical to the plan.
4. Identifying alternatives – Different feasible alternatives need to be identified in order to achieve a particular objective, since there may be multifarious ways in which a particular goal can be accomplished.
5. Evaluation of alternatives – Alternatives need to be evaluated in the light of goals. That are set, and objectives to be achieved considering the various constraints and uncertainties that exist.
6. Selection of the best alternative – The choice of the best alternative, ie the selection of the most appropriate course of action. Sometimes two or more contingency plans are kept as a back up considering. The unpredictatbility of the future.
7. Implementing the plan – Implementation or execution entails putting the plan into action. Managers need to consider a series of important decisions during implementation of the actions stated in the plan.
8. Reviewing the Plan – Reviewing the plan help managers to evaluate the effectiveness of the plan. A system of thorough review and scrutiny can help in detecting derivations from the The set plans and remedial measures can be taken accordingly.