ies are very critical in formulation of plans. Plans should be flexible, but with sufficient specificity. There should always be room for spontaneous amendments as per the needs of the situation. Accommodation due to rapid changes in world scenario need to be factored in quickly without changing the fundamental points of the initial plan.
- Commitment: when a plan is formed to fulfill a particular objective, it should extend sufficiently to fulfill the commitments made prior to planning. The times frame of a plan is crucial as too long or too short plans tend to be ineffective and inefficient. Commitment to a project is necessary to remain motivated in fulfilling it, and also to create and innovate. However, escalation of commitment can have catastrophic consequence, so managers need to know when to let go of an unsuccessful campaign.
In every organization, the planning process is different. Each manager has their own thinking style, and hence the approach varies from manager to manager. The personality and worldview of the deciding manager defines the process of his organization in approaching plans.
- Formal planning: Traditional methods exhibit the plans being made entirely by the highest levels of management within a company. They are often assisted by teams; whose objectives are to provide the managers with relevant and specific information needed for effective planning. Once the plan has been formulated, it is circulated around the organization, and flows downwards, where it is divided into individual goals for each area in the organization. It only works when managers are capable of making plans that benefit and positively affect all members involved in situ, not on paper.
- Informal Planning: Another approach involves staff member from all level participating in the planning process. The goal the set mutually by the subordinates and the bosses, and they are late used as performance standards. The emphasis is on results and not methods in this a This approach helps members to be more involved in the decision-making process and help make a difference in the outcomes of their organizations.Commonly known as Management by Objectives, this approach has been widely used in most contemporary organizations as they reduce the workload of a single group of people, and increase efficiency as the goals are set by the concerned groups as per their expertise levels.