PLANNING: Definition, Purpose, Function, Type

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In management activities, many terms are used, one of which is planning. This term is closely related to the stages of a good management. For those of you who don't understand the meaning of planning, goals, and types, you must read the following information thoroughly.

The term in English is called planning This is also very closely related to personal life, group, business, politics, and others. Instead of being confused, here is the complete information.

List of contents

Definition of Planning

Definition of Planning

The most important thing you need to understand is the definition of planning. From a general point of view, it is a process to take an inventory of what is to be achieved both in the long and short term.

In addition, it is also referred to as the arrangement of activities with maximum coordination between anyone involved in it. As a result, a process will be seen where a plan can be realized properly.

Read: Language Definition

Understanding Planning According to Experts

Understanding Planning According to Experts

Experts have their own views on the meaning of planning. Some of them become references because they have the right meaning. What do experts say about planning?

1. George Steiner

Steiner has the idea that planning is an initial process, to achieve goals, limiting strategies, plans, to policies. Arranged in detail to achieve. It also includes the extent to which an organization achieves its objectives, implements all decisions, reviews, and feedback to recognize a new planning cycle.

2. Jacqueline Alder

The meaning of planning according to this expert is, a stage when determining future goals to be realized. Including preparing, what are the important steps that must be taken so that these goals can be realized.

3. Erly Suandy

According to him the meaning of planning is, a process to determine a goal of a group or organization. Then convey it in the form of strategies, operations and important tactics that will be needed in order to achieve all group goals perfectly.

4. John Douglas

Douglas has a point of view, that planning is a stage or process that is carried out continuously. It includes the stages of the study, the formulation of objectives and suggestions, the implementation of these studies and formulations, the evaluation process to monitoring the realization of the stages.

5. Barbara Becker

Another with Barbara Becker, who mentions it as a rational way to prepare for a better future.

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Planning Characteristics

Planning Characteristics

To distinguish it from other management terms and divisions, apart from the different meanings of planning, the characteristics are also not the same. So that it can be easily recognized and used when needed, of course in the right way.

1. Goal Orientation

In making a plan, the orientation is clear, namely to achieve a goal. So that all stages of the plan will refer to these goals, by producing appropriate actions, alternative actions are needed.

For example, a company wants to achieve a sales target of 25 percent in the first three months of opening a business. Then the plans made will focus on the realization of the 25 percent sales. Starting from how to produce business products to marketing using the right promotions and techniques.

2. Have a Function in the Managerial Field

This process is part of management, precisely an important and earliest function compared to other management functions. Its existence will relate to organization, direction, control, human resources, organization.

With planning, all functions of management will be more focused and able to be realized better than without a plan.

For example, planning a charity event will determine who will take part. Then what is the function of each of the human resources involved, what are the techniques for controlling the team, so that everything is coordinated as well as possible.

3. Is a Continuous Process

Called continuous or continuous because there will always be plans made, for a certain period of time.

For example, company A has a short-term sales plan for six months with various stages of planning and efforts to realize it. When six months will be completed, then a new plan will be made again for the target achievement of the next goal.

This continuous planning will be interconnected, of course it will be better from time to time because the condition of an organization or business will continue to be dynamic all the time.

4. Pervasive

It exists at every level of the group or organization, not just in certain sections. However, the packaging, in the form of strategies and activities, will vary according to level.

For example, in a company, there are five work divisions, so there will be a plan in each division regarding efforts to achieve company goals. Of course with the capacity of each division.

Planning for the financial division, of course, relates to what budget items are important and tricks to minimize expenses and maximize income.

While in the production division, how to plan product design then raw materials and the right production process.

5. Make decisions

In a plan, what are the various choices of actions that will be part of the effort to achieve the goal. The design of alternative actions is carried out as best as possible, so that when realized it will maximize the various advantages and minimize the disadvantages.

6. Futuristic

Called futuristic because it relates to goals to be achieved in the future. There is a projection of future conditions in the realization of the notion of planning, which is seen from various points of view and analysis. As well as predictions, the extent to which the plan can be realized with these future conditions.

It can also be referred to as predicting the future through the right actual planning process.

7. Intellectual Process

Not just planning something, but there is mental energy involved. Including logic, analysis, ways of thinking, predictions, and imagining in a smart way.

Also carry out various important innovations, which are related to a goal to be achieved later. So that it is not static and is always new and according to current conditions.

All of that, of course, requires a high intellectual understanding because you will prepare various important things when planning.

Read: Definition of Review

Planning Function

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Planning Function

After knowing what planning means and then its characteristics, you also need to understand what the functions of the first stage of management are.

Its function is related to the concept of basic questions in the world of management, which is often abbreviated as 5W1H.

1. what (what)

Dealing with any goals to be realized, by a group or an organization. For example, the goal is to meet people's food needs or to become the number one producer of a product.

2. Why (Why)

Is an explanation of what, namely why the goal was made as the basis of an organization's activities? Of course there will be many answers later, based on the results of the analysis and preparation of the existing planning team.

For example, why is company A's goal to earn 50 percent more profit than last year? From these questions, the right answer can be sought, for example because you want to cover last year's losses which must be minimized during this year and the following years.

3. Where (Where)

The orientation is still the goal, which is to explain where the best and right place is to realize the goal using the various stages that have been prepared.

For example, the goal of a company is to carry out current promotions to achieve the target of adding consumers. The location can be in a shopping center and take advantage of social media.

4. when

This function, is closely related to schedule realization of the plan until all goals are realized. Whether in one month, six months, or a period of one year.

5. Who (Who)

Determine who will have a role in achieving the goals of an organization. The people, of course, were chosen based on a series of predetermined plans.

Determining these human resources also requires a process so that later a solid team will emerge to achieve the goals and targets with the organization.

6. How (How)

Functions related to how the best steps can be taken, in an effort to achieve an organizational or company goal.

For example, for the purpose of increasing sales, the way to do it is to take various appropriate promotional steps. Also expanding the marketing area, in order to get new customers who will increase business income.

Planning Purpose

Planning Purpose

Each stage of management, of course, has a goal to be achieved. So is planning. In addition to understanding the meaning of planning, it is also important to know the purpose of the stages of the plan, including:

  • To determine a standard, which will be applied in carrying out an organization or company activity. With these standards, it will be easier to evaluate, control, and supervise each activity.

When something is not in accordance with these standards, corrections can be made immediately so as not to cause problems in the future.

Example: planning the promotion of a product with promotional activities on line, the standard is to create ads with a certain theme within a certain time period.

When someone does not carry out promotional activities according to these standards, it will be easy to identify and direct them to return to the original plan.

  • As an effort to adapt to any changes, which may occur in the company and the business community or organization. So that with planning, adaptation can be done more easily without causing chaos in the organization.

Example: a change in the cost of Value Added Tax (VAT) to 11 percent, makes a the company makes a new plan in financing so that it can pay the tax that has been set the.

  • As a means of providing the right direction, all divisions are involved, both administrators and non-administrators. As a result, they will have a better understanding of how to carry out activities according to the initial plan that was mutually agreed upon.
  • Minimizing chaos at work, waste of activities, and incompatibility of work with goals. Where with the plan, all can refer to the plan without having to do other things that are not related to the original plan.
  • Facilitate coordination between personal, group, and organizational management in order to achieve common goals.

Types of Planning

What are the types of planning? It turns out that there are several types that are grouped by time period, scope, and level. Here is the full explanation.

Types of Planning According to Time Period

Types of Planning

For this type, it is divided into three, namely short, medium, and long term with different durations.

1. Short Range Planning (Planning in the Short Term)

It is a short-term plan, usually only valid for a maximum of one year. After that, a new plan will be made for the following year.

This type applies to corporate planning, which wants to see the achievement of annual performance with various activities that have been prepared through planning.

Example: Mining company logistics division work plan in one year. Includes logistics procurement activities, for mining work for that duration. How is the distribution system, distribution supervision, and various activities related to logistics.

2. Medium Range Planning (Planning in the Medium Term)

Namely the plans made, for a time between five years to seven years. Where the preparation is done carefully, complete with the stages of activities that will be carried out during that time period.

It is usually possible to evaluate the plan, based on the notion of planning that is applied in case: a change occurred which resulted in the initial plan having problems to be realized whole.

3. Long Term Planning (Planning in the Long Term)

Is a plan made for a period of 10 years to 25 years. Of course, it will be very detailed and complex, but it is very important to do so that the goals of an organization can be achieved within a certain time span.

Type of Planning According to Scope

Type of Planning According to Scope

Divided into three types, with different focuses according to the needs of an organization.

1. Tactical Planning (Tactical Planning)

Contains policies that will support the achievement of organizational goals. The prepared activities will be realized in a short time duration, can be adjusted to the current conditions and can be changed if needed.

2. Strategic Planning (Strategic Planning)

It is a well-prepared plan to be realized in the long term. Everything has been prepared in detail, from policies to activities supporting their realization.

It cannot be changed because it has been standardized for a certain time, so all components involved must refer to the plan.

3. Integrated Planning (Integrated Planning)

That is planning made with an integrated system, comprehensive for all components of the organization.

It is used as the main reference in carrying out each activity, so that the focus of all involved is equally to achieve organizational goals. Can be used for short or long term, the details are also more complete.

Types of Planning According to Level

There are also three types with their respective characteristics, their use is also not arbitrary.

1. Day to day Planning

The type of planning that is made routine every day, in an effort to ensure all activities are on track rules correct. Activities are completely scheduled and the results can be seen every day.

For example, the daily work plan of the construction project team, where every morning an explanation of the work plan will be made for each team member. Some have to complete the installation of concrete walls, paint, and make roof trusses.

Usually in the afternoon, an evaluation of the achievement of the plan will be carried out, whether it is on target or not.

2. Operational Planning (Operational Planning)

Associated with making guidelines, in carrying out every program in an organization. So, later there will be a reference for each component within the organization in carrying out the program.

This plan will greatly help to equalize the perceptions and goals of all human resources of the organization in an effort to achieve a set of goals and targets.

3. Master Plan (Master Plan)

Is planning related to policies in an organization. The purpose of making it is, for long-term activities include all things related to the organization, both internal and external.

Conclusion

The description above provides an important understanding, starting from the understanding of planning to the extent of its role in the implementation of overall management.

In its application, there are functions that are carried out and goals to be achieved. Including the types that you can later choose, which one you want to use according to the situation and needs of the company or organization where you work and have activities.

With the complete information about planning above, from the definition of planning to its types, it will be an important lesson. So that later you can make your own plan, to be implemented.

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