vii) Formulating Derivative Plans :The departmental plans are known as Derivative plans. For
instance, in order to generate desired profits for the organisation, production department should
have production plans regarding number and quality of units to be produced.
viii) Budgeting : A budget is forecasted statement of revenue and expenditure, it is a numberised
plan. It allocates the various resources to the required activities keeping in view of objectives.The
organisation and each department working in it can have their own budget. Hence, budgeting is
the last stage of planning which puts the plan into action.
The planning sequence discussed above, is almost similar to all the managers but may
differ according to the complexity and time duration of plans like some steps may be prolonged
and some stages may be shortened. Future plans must be cost-effective. Thus, proper planning
should be done keeping in view the circumstance, the need, the magnitude and the level of
commitment.
9.6 TECHNIQUES OF PLANNING : Planning will be useful only when it is effectively implemented. The following techniques makes
the planning effective.
1.Consciousness for Planning : Planning will be effective only when there is a proper climate
for it. The superiors should try to set objectives, review various goals and redraft them as is
required for their effective implantation. The hurdles in the ways of planning should be removed.
Every body should extend willing and co-operation for making the plans successful.
2. Initiative at top level: The initiative and support of top level management is essential for
9.5
Principles of Management
Planning
making the plans effective. The involvement of lower level management is also essential be-
cause execution will be more at these levels.
