Whether at the top or lower level of organization, every manager plans. By definition every executive in charge of his department is manager and every one of them plans.
The importance and magnitude of the plan will depend upon the level on which it is performed.
Planning at the top level of the managerial hierarchy is fundamental, broad, far reaching and basic. The various subordinate managers plan within their own particular area of authority.
The scope of participation in planning process tend to decrease as we descend towards the lower levels of management and approach the point of execution of the plan.
Hence all managers plan regardless of their rank in the managerial hierarchy.
For any organization, goal attainment can be done only when there is an appropriate plan. The main responsibility of planning process goes to a particular department or a group of people in the organization.
They usually are;
Many large organizations have a professional planning staff or department for creating a better and comprehensive plan for all the departments in the company.
Organize, might use a planning staff for various reasons. One in particular, a planning staff can reduce the workload of individual managers and help coordinate the planning activities of individual managers.
Solving a particular problem with many different tools and techniques and considering the whole organization, not just a project or a department. However having a separate department of employees could be a financial and bureaucratic burden.
Planning Task Force
Organizations sometimes use a planning task force to help develop plans. Such a task force includes line managers with a special interest in the relevant area of planning. The task force may also have members from other departments of the organization.
Planning task force is most often formed when the organization requires addressing special circumstances. It is more preferable and efficient than maintaining a different planning staff or department.
Board of Directors
The board of directors establishes the corporate mission and strategy. In many companies the board takes an active role in the planning process; especially in a new and medium sized company. However as the company gets larger, the power and authority is decentralized.
CEO (Chief Executive Officer)
CEO (Chief executive officer) is the president the chair of the board of directors. In any organization’s planning process, the CEO is the single most important individual.
The CEO plays a major role in the complete planning process and is responsible for implementing the strategy.
The board and CEO, then, shoulder direct roles in planning. The other organizational players involved in the planning process have more of an advisory or a consulting role.
The executive committee is a collection or group made of the top executives in the organization.
Executive Committee members usually meet regularly for setting goals, objectives, and strategies to achieve them.
Members of the executive committee are assigned to various department or staff to maintain them and identify any possibilities that might challenge the entire organization at some time in the future.
Line management is the final component of most organizations planning activates.
They play an important role in an organization’s planning process for two reasons;
- They provide valuable inside information for other top-level managers about formulated and implemented plans.
- The line managers at the middle and lower levels of the organization which is why they must execute the plans developed by top management.
- Line management identifies, analyzes, and recommends program alternates, develops budgets and submits them for approval, and finally sets the plans in motion.
All managers engage in planning process to some degree. The larger an organization becomes, the more the primary planning activities become associated with groups of managers rather than with individual managers.