ABFM CAIIB notes – Unit 2
Module A : UNIT 2 – Planning
Definitions of Planning
Planning is the process of engaging in thoughtful discussion before undertaking a task, which entails engaging in in-depth contemplation about that task and going into all the details meticulously to be ready with an execution and implementation plan, to save both effort and time.
Process of Planning
The process of planning is based not only on the finances, time frame, infrastructure, and resources, but also since decisions and particular or directional
- What is to be done?
- Where it is to be done?
- How it is to be done?
- When it is to be done?
- Who will execute?
plans, which might be strategical, tactical, or operational, are made based on those considerations.
Steps in Planning Process
- Opportunity Analysis
- Objective Establishment
- Developing Planning Premises
- Alternatives Identification
- Evaluating Alternatives
- Selecting the Best Alternative
- Formulating Derivative Plan
- Follow-up and Reviewing the Plan
Importance of Planning
- Helps Goal Creation
- Provides Direction
- Tackles Uncertainty
- Discards overlapping and wasteful activities
- Promotes Innovative Ideas
- Facilitates Decision Making
- Controlling
Advantages of Planning
- Coordination of Various Activities
- Optimisation of Resources
iii. Inspirations and Responsibilities
- Establishment of Execution Principles
- Adaptability
Disadvantages of Planning
- Forestalls Activity: that managers won’t have time to put their plans into action. It is sometimes referred to as “death by plan.”
- Lack of Concern: it is possible that managers won’t be able to monitor the system’s progress or recognise shifts in the external circumstances.
iii. Forestalls Adaptability: Even though well-laid plans have the potential to encourage adaptability, sometimes the opposite occurs. Middle and lower-level supervisors may have the mentality that they are required to stick to an arrangement no matter what, even if their experience demonstrates that the arrangement is not working.
