Principles of Management: Text and Cases

2

Organizational Planning

After going through this chapter, you will be able to understand:

• the concept and definitions of planning
• the importance of planning in an organization
• policy formulation for plans in an organization
• the concept of a strategy and its various levels
• strategy formulation
• the ways in which budgets facilitate plans
• forecasting
• various forms of decision making

Planning: An All-encompassing Managerial Function

Planning is of prime importance at the operations level. The marketing department puts up requisitions to the operations department after booking orders to ensure the supply of produced goods according to the requirements of customers. The operations department then needs to schedule activities, balancing cost ...