Explain Various Planning Aids?

A large number of the techniques are used in the process of the planning and these techniques are very much needed and important, as these help a lot in performing the planning process in a very efficient manner.

As explained above, the planning acts as a great control tool and this ability of the planning is mainly due to the use of some of the techniques, which can be summarized as the follows

1. Computer assistance

a. Computers as we all know have a very important role to play in almost everyone’s life in today’s world and the assistance of the computers has also eased the process of the planning in a great way.
b. The computers can easily churn high amount of the data at a really great speed.
c. MS Access acts as the very important tool for the database.
d. MS Access helps a lot in storing and analyzing the data.
e. MS Excel helps to test the different alternatives.
f. MS Word helps in writing and in working on the supporting graphical systems.
g. MS Power Point helps in the presentation work.
h. Various types of the softwares are available that help a lot in the research work, forcasting, the statistical handling etc.
i. The groupware helps a lot in linking a group to work on planning simultaneously.

2. Gantt charts

a. First introduced by Henry L. Gantt.
b. Called as the Gantt bar charts.
c. In the beginning, this method was mainly used for showing the various time relations with the events.
d. The whole plan is divided into a series of the activities and these are shown with the help of the bars against the time planned.
e. With the help of this technique, one is able to develop a relationship between the different activities and see when they are starting and ending and find out what is the sequence to be followed to complete the plan in the shortest possible time.

3. PERT (Program Evaluation and Review Technique)

a. Was developed by the US navy.
b. At that time, was used mainly for the development of the Polaris weapon system.
c. Acts as a very important and useful planning and the control tool.
d. It is a flow diagram.
e. Helps in showing how the different activities lead to one another and the time taken.
f. The completion of any event is shown with the help of the circles.
g. The time likely to be taken is shown with the help of the arrows.
h. After this a critical path is drawn by linking the events which take the longest time and which involve the least slack time.
i. With the help of the critical path, the critical events on which the total planned time is dependent can be shown.
j. When there occurs any type of the delay in an event, the Program Evaluation and Review Technique chart is modified every time to draw a critical path.
k. The aid of the computer is taken to work out a critical path, when many events are involved. But during this process, much detailed planning is needed, so it can be said that it is not suitable for the general planning.
l. It emphasizes on the time but the cost factor is not at all considered.
m. After this, the Program Evaluation and Review Technique was born.
n. The Program Evaluation and Review Technique is much better for the direct costs but not very suitable for the indirect costs.
o. With the help of this technique, the feedback about where we exceed the costs (if similar accounting records are kept) can be easily obtained.

4. CPM (Critical Path Method)

a. It is a planning tool.
b. Helps in the establishment of the relationship between the activities, the time, the cost and its result in the performance.
c. Tells about the various activities which are critical in the execution of the plan.

5. Statistical methods

a. These methods help in the calculation of the mean, the mode etc.
b. Helps in working with the probabilities, the scatter diagrams, the regression analysis, the simulations etc.

6. Graphs and the charts

a. Help a great deal in the pictorial representation of the statistical data.
b. Explains the salient features of the statistical data.
c. Some ways for the representation of the statistics may include the following methods

I. Columnar charts
II. Pie charts
III. Line charts
IV. Decision trees

7. Scenario building

a. This method is very useful when the concept is there but thinking in the terms of the various alternative outcomes is to be done.

8. Management by the objectives (MBO)

a. By deciding the objectives and the goals for each person involved, a great amount of the clarity in the role, the performance is obtained.
b. The business objectives can be built and then can be divided further among the different persons involved, depending on the ability and the role assigned.
c. The Management by the objectives acts as a very critical and also very useful tool for the controlling and the motivational purposes.
d. Also acts as a very good evaluation tool.
e. The performance of the people acts as the basis for the evaluation.
f. But the Management by the objectives method possesses some drawbacks also, which can be summarized as the follows

a. The long term planning receives a great neglect – ion at the hands of the people.
b. Does not has the ability to provide proper guidance to the superiors.
c. Such circumstances are often faced by the organization, which forces the people to make the changes in the goals and the objectives time and again.

9. Research methodology

a. Plays a very vital role in the gathering of the information.
b. Involves the determination of the census, preparation of the questionnaire, collection of the secondary data, collection of the primary data, interpretation of the collected data etc.

10. Budgeting

a. For the execution of the plans, this step is very much important.
b. The plans must be converted to the budgets.
c. The method of the planning on the past performance was once very widely used but now it is not at all a suitable or a valid method.
d. Now zero based budgeting is used.
e. In this type of the budgeting, the process is started with the zero base and all the projections are made independent of the historical performance.

11. Forecasting methods

a. Forecasting refers to the process of the anticipation of the certain behavior of the business surroundings, the technology, the demography, the value trends etc.
b. The forecasts can be done by the government or the national banks, associations etc.
c. The forecasts are in the published form.
d. Are available as the printed secondary data.
e. The Delphi method is very often used in the forecasting.

12. Balanced scorecard:

a. Acts as a measurement system as well as the management system.
b. Helps the management in carrying out the translation of the strategy into the actions.
c. Feedback on the internal business processes and the external outcomes can be obtained.
d. A balance of all the critical factors involved in the strategic planning can be obtained.
e. Acts as a very comprehensive system and covers all the aspects of the business unit.