Horti-Business Management (2+0)

Planning - Meaning

• Planning refers to the process of selection of objectives of the firm and deciding the course of action to achieve them. Planning is the first task at all levels of a firm.
• The owner of a farm / firm however small will have a vision of what the organization should become in the future. This vision forms the guiding light for setting goals and objectives to be achieved over the years so that eventually the vision could become a reality. A firm will exist for a long period based on its potential to generate revenue for the owner / investors. Therefore, it is essential to set long term goals for a farm / firm and break them into medium term and short term objectives. Setting the long term goals and short term objectives is the primary task of planning.
• The second component is to decide the course of action for achieving the long term and short term objectives. The farmer can earn by choosing to cultivate a crop from among the alternatives. There are several binding g factors such as, climate, soil, water availability, technical knowledge and skill, resource availability, consumer demand, expected price etc., which could limit the alternatives available to the farmer. Considering several aspects the farmer could select a course of action to achieve his objectives in a given time frame.
• Planning is essential for all organizations, however small or big, at all levels of management (Top, Middle and Junior level) and employees.
• It gives a sense of direction towards which all the employees will work.
• It enables all employees in the organization to work collectively to achieve common goals. In a business firm it is usually profit maximization.
• Planning is a continuous activity. It has to be done every day, every week, every month, every year or medium and long term plans.
• Planning involves cognitive domain. The Manager must analyze available data or information, understand the environment and prescribe appropriate could of action. Persons involved in planning must have analytical and technical knowledge and skills to analyze data, interpret the results ad suggest innovative solutions.
• While planning, assumptions are made about the risks and appropriate course of action is decided. In agriculture the risk could be a) production risk (due to climatic factors, floods, pest and disease outbreak etc); b) market risk (fluctuations in price of crop produce); physical risk (fire, theft).
• The plan always aims for an improvement over the past. Hence, it is essential to be creative and develop innovative ideas / solutions so as to achieve new targets / objectives.
• Planning emphasizes effectiveness and efficiency. It is about making right choice and implementing it in the best possible manner.
• Planning facilitates control. The implementation of the plan is monitored and the plan serves as a guide for executing control.