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There are various steps involved in planning. There are as follows:

  1. 1.                 Defining the Problem 

The manager has to identify and define the problems which may appear at a future date and which may require proper planning.

  1. 2.                 Establishing Objectives 

Every Manager should clearly establish the objectives to be achieved by the enterprise. Objectives must be specific, informative and functional.

  1. 3.                 Establishing the Planning Premises 

Every plan has to be based on certain carefully considered assumptions and predictions, which are known as planning premises.

  1. 4.                 Determining Alternative Courses of Action 

The next step is to search for and examine alternative courses of action.

  1. 5.                 Evaluation of Alternative Courses of Action 

Every alternative course of action has to be evaluated, and the relative importance of each one of them should be ascertained.

  1. 6.                 Selecting the Course of Action 

After analyzing and evaluating the available alternatives, the manager has to select the best course of action.

  1. 7.                 Formulating Derivative Plans 

Every major plan has to be supported and developed by the preparation of other derivative plans. Within the framework of the basic plan, derivative plans are developed in each area of the business.

  1. 8.                 Timing and Sequence of Operations 

For every work, the manager has to prescribe the time frame, and within that, the work has to be started and completed. For smooth flow of work, it is better to maintain a sequence of operations.

  1. 9.                 Participation and Follow-up 

Each and every plan has to be communicated and explained ·in great detail to subordinates so that they are kept fully informed. It also helps in securing the co-operation and complete participation of the workers in executing the plans. Every plan and programme requires good follow-up. It helps in making some adjustments and modifications in the plan if necessary. Continuous follow-up can result in the effective execution of the proposed course of action.