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ABOUT TAX PLANNING
Thinking about the activities required to prepare the future for the achievement of a goal in view of the present circumstances is called planning. It is a major component of management.
In the kind of economic, social and political environment in which we are today, the planning venture has become a desired life partner. If the efforts of the group are to be effective, the working people need to know what is expected of them and this can be known only with the help of planning. That is why it is said that planning is essential for effective management in all the activities of the enterprise. Organization, motivation, coordination and control will be of no importance without setting the goal and deciding the path to reach it. When there is no predetermination of actions in the absence of planning, neither the organization will have to do anything, neither coordination nor motivation and control. That is why scholars have considered planning to be the most important task of management. The process of planning has existed since the beginning of human civilization, because it has been human nature to do what he has to do next. He imagines this in the East. Today, its improved form is in front of us.
Planning Objectives
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1. Providing information: Another important objective of planning is to provide information about the goals and sub-goals of the enterprise to the employees and outsiders working in the organization and also to provide information regarding the methods of achieving them.
2. Providing specific direction: A specific direction by planning the future outline of a particular work. Efforts are made to provide which seems almost impossible in its absence.
3. Increasing efficiency: A fundamental objective of planning is to increase the efficiency of the venture. It is only natural to increase the efficiency of the enterprise due to the selection of the best option and the work done in an orderly manner.
4. Austerity in the management: With the planning of the future activities of the enterprise, the focus of the management becomes focused on implementing it, which results in austerity instead of wastage in actions.
5. Healthy Frontbanding: The purpose of planning is also to develop healthy barricades. By selecting forecasts and the best option, a correct barricade or array can be prepared.
6. Certainty in future tasks: Through planning, there is an attempt to bring certainty in place of uncertainty in future activities of the institution.
7. Assessing risks and possibilities: Another important objective of planning is to examine the future risks and prospects of the organization. Necessary measures can be taken to avoid its many future risks.
8. Achieving the set goals: One of the important objectives of planning is to keep trying continuously to achieve the set goals.
9. Establish equilibrium and coordination: By planning, coordination and coordination are established in various activities of the undertaking.
10. Conquering Competition: Dow-well planning helps in conquering competition. Competition can be faced due to efficiency and economy.
Meaning And Definition Of Planning
Planning is the process by which future objectives and the actions to be taken to achieve those objectives are determined. Apart from this, all the situations that concern it. Regarding the work to be done in this process, answers to important questions are also determined when, where, how, by whom, by what resources, by what rules and procedures. Many scholars have defined planning in many ways. Some of the major definitions are as follows-
According to mondy and flippo, the process of determining goals and the path to achieve them is called planning.
Claude S. According to George C. Georgh, planning is to look ahead, conceptualize future events and make decisions that affect the future in the present.
According to Kutz and O'Donnell, planning is an intellectual process, conscious determination of procedure, decisions based on objectives, and pre-conceived assumptions.
In the words of M.E.Hurley, "pre-planning is the determination of what to do." It involves choosing from various alternative objectives, policies, methods and programs.
In Hart's terms, planning is the advance determination of the series of tasks by which definite results can be achieved.
In the words of Mary Cushing Niles, planning is the process of selecting and developing a method or course of action to accomplish a purpose. This is the basis in which future managerial functions originate.
In Kreitner's terms, planning is the process of coping with uncertainty by determining future work paths to achieve specified results. In Haiman's words, planning is the pre-determination of what is to be done.
George r. In the words of George R.Terry, planning is the method or art of looking into the future. It anticipates future requirements so that the current efforts to achieve the set targets can be aligned with them.
Importance of planning
Many changes are going on in the business sector, which not only open the path of development and progress for the enterprise, but also create many risks and uncertainties. The nature of modern business has become very complex due to changes in competition, technology, government policy, economic activities, labor supply, raw materials and social values and beliefs. In such a changing environment, business success can be expected only on the basis of planning. Development of planning is an important requirement of every undertaking in today's era. Occupational waste, misuse and, risk can be reduced only by planning. The need and importance of planning can be explained on the basis of the following points:
1. Reduction of uncertainties: Planning becomes more necessary due to future uncertainties and changes. Through planning, the uncertainties can not be eliminated at all, but can be reduced. With the help of forecasting which is the basis of planning, a manager may be able to get knowledge of the future to a great extent and to change the future circumstances according to himself. The conclusions drawn on the basis of the analysis of facts, to a great extent, make a businessman the basis for dealing with uncertainties.
2. Ease of control: It is the task of control to know whether the work is being done according to the predetermined procedure. The method of starting the work is decided through planning so that the standards are determined. Many such techniques have been developed, through which a deep connection can be established in planning and control. The techniques which are used in planning become the basis of control later. That is why if planning is called the soul of control, then there will be no mistake.
3. Assistance in coordination: Coordination is a systematic practice of various actions to accomplish common objectives. Through this, it becomes easy to achieve the objectives of the venture, because plans are the chosen path, so with these, the manager can awaken cooperation in place of conflict which helps to coordinate the various actions. In addition, it determines various actions in such a way that it becomes necessary to coordinate.
4. Prevention of hasty decisions: All the tasks under planning are taken up only after much deliberation, so the loss of hasty decisions will be avoided.
5. Knowledge of completeness: A manager is able to have complete knowledge about each action due to seeing the undertaking in perfection so that he gets an opportunity to know the basis on which his work is determined.
6. Management by exception: Management by exception means that the manager should not be involved in every action. If all work is going well then the manager should be relaxed and should come only in the middle when the work is not going according to the plan. The objectives of the institution are determined by planning and all efforts are made to achieve them. Thus, the management need not be entangled in the daily work, so it can be said that the management is possible with the exception of planning, as a result of which the managers have so much time left, that they can think more economically and have better plans. Prepare.
7. Enhancement of cooperation and satisfaction of employees: Through planning, various employees get to know when, what and how to do different employees. When they are aware of their future actions and are prepared mentally, and as soon as the time of work comes, they do it with more diligence and hard work. Work done increases credibility and the institute benefits. This gives satisfaction to the employees and promotes mutual support.
8. Achieving the set goal: The last and most important objective of planning is to keep trying continuously to achieve the set goals.
9. Providing Specific Directions: By planning, the future outline of a particular task is tried to give it a specific direction, which seems almost impossible in the absence of it.
10. Efficiency Criteria: The objective of planning is to set standards for evaluation of managerial efficiency and individual and group efficiency.
Planning Difficulties, Limitations And Criticisms
Despite the above mentioned importance of planning, some scholars oppose it by calling it 'waste of time and money' or 'rainy hail'. He says that business plans are prepared against the backdrop of uncertain and volatile circumstances. When the basis of this is uncertain, then it can be assumed that the things determined by planning will always be 100% true. The root cause of this protest is due to the various difficulties and limitations in planning, due to which it is criticized in harsh words. Their brief description is as follows-
1. Difficulty in choosing the best option: In planning, the best choice is made from different options, but which option is the best. Who will decide this? There may be one option according to one person and another option according to another person. Not only this, one option is the best in the present and in the changed circumstances in the future, the other option seems to be the best.
2. Lack of flexibility: Another difficulty in planning is lack of adequate flexibility. According to William Newman, the more detailed the planning, the more elasticity it will be. In the absence of elasticity, managers become enthusiastic, so that they do not take full interest in the work of the enterprise. Managers are obliged to act according to predetermined policies, procedures and schedules and cannot do so even if they need to be amended according to the circumstances. Thus, difficulties in the planning operations arise due to elasticity.
3. Ability of sufficient mental ability: According to Urvik, 'planning is basically a mental state, an intellectual process. Only those technically trained and experienced people can do the work of planning, but there is often a shortage of such individuals in the institutions, which lead to flawed plans.
4. Psychological Obstacles: Psychological impediments also create obstacles in the formulation and implementation of schemes. The major obstacle of this is that like most people, the executive gives more importance to the present than the future. The reason for this is that the present is not only more definite than the future but also desired. Many such things are included in the planning, which the executive neglects and opposes on the grounds that they cannot be implemented yet.
5. Interesting work: If seen, planning is an unpleasant task. Sometimes planning is unsuccessful due to unworkable work. According to Alan K., planning is sometimes unsuccessful due to difficult and uninteresting tasks.
6. Lack of share: Scholars are of the view that in the planning of planning, the stakeholders, administrators, experts and psychologists should get adequate share, which is found lacking in this process. This is the reason, in the absence of which planning does not prove its ubiquity.
7. Limited practical value: Some critics are of the opinion that planning cannot be said to be practical in all circumstances. Despite being based on facts, opportunism gets a full place in planning. Employers break the facts in such a way that it ends all utility of planning.
Types Of Planning
Planning can be of many types. Generally planning can be divided into the following sections:
Edit By Duration
Depending on the duration, planning can be of three types:
(1) Short-term planning: It is usually prepared for a period of one year and less. Under this, short term actions are decided in such a way that the objectives of long term planning can be easily achieved. In this, detailed analysis of verbs is done. It starts with achieving the specific objective and the voluntary level of production. Short-term planning, since it is short-lived, is easy to predict, can be successfully implemented and necessary changes and modifications are possible. There are also some limitations of short term planning. In this, the development and stability of the enterprise is not given enough importance and it is difficult to give employees a stake in the decision making. In addition, hasty decisions also have disadvantages in this type of planning.
(2) Medieval planning: Generally this plan is of more than 1 year but less than 5 years and in it all the actions are prescribed which can help in solving the basic problem.
(3) Long-term planning: Generally these plans are prepared for a period of 5 years or more. Through them, long-term objectives of the venture are determined and specific plans are formulated to achieve them. Identifying the basic problems in advance and deciding about them is inherent in these schemes.
Long-term planning can be said to be the real representative of the intentions and expectations of the institution. It is easy to adjust to the changes in the environment and it accelerates the development of the enterprise. Apart from this, it will encourage research and research. Its drawback is - long duration is difficult to predict, expensive system and difficult to analyze the effects of all elements.
Edit by nature
Depending on the nature, planning can be divided into two parts -
(1) Permanent planning: This planning is of permanent nature which is used again and again. It includes the policies of the enterprise, the structure of the organization, certified process and methods.
They remain useful for a long time. These are decided in the past, so that the activities of the organization can be taken as the basis of providing arrangements. These increase the firm's credibility.
(2) Temporary planning: It is the planning that is made for a particular situation and ends with the completion of that purpose. These are also known as single use planning. Their nature is temporary and novelty. Budget is a good example of this.
Edit by level
Depending on the level, planning can be divided into three parts:
(1) High level planning - These are the plans made by the managers working at a high level. Which affect the activities of the entire undertaking. In this, the general policies of the institute are explained.
(2) Middle level planning: These plans are created by the middle level managers, which would act as the basis for low level planning.
(3) Low-level planning: These plans made by the managers working at low level work to give the work to the intermediate level plans.
Edit By Importance
Depending on the importance, planning can be divided into three parts:
(1) Macroeconomic planning: Changes in India's economic scenario after 1990, such as liberalization, privatization, globalization and transparency have made macroeconomic planning important. Its existence is considered necessary for the successful operation of the venture. In general, macro planning is a comprehensive scheme that considers the institution in its entirety. This can be called the time approach of planning.
(2) Strategic planning: Strategic planning is neither a box of tricks nor a set of techniques, but it is a commitment to tools for analytical thought and action. It is a method of improving the adventure capabilities of the enterprise.
(3) Operational planning: Operational planning is also known as strategic planning. The operational planning array is a process of converting creative planning into specific action plans. It provides the content and form of strategic planning. It is concerned with operations that formulate plans for various functional areas of the enterprise, such as production, marketing, finance, human resource development, research and research, etc. This makes possible the best use of available resources. This gives direction to the managers working on the frontline and it is easy to evaluate their actions based on them.
Planning Techniques or Processes
Planning process refers to a process that is possible to build an effective planning by following. Although a common process of planning for all types of enterprises cannot be determined, the following process can be followed in a rational business planning:
1. Defining the Problem - Defining the problem is the real point of planning. This includes taking a preliminary look at the possible future opportunities of the problem and knowing the strengths and limitations of the undertaking. In this stage the manager also learns the potential benefits from the solution of the problem.
2. Determination of Objectives - After defining the problem, the organization should clearly define its objectives and goals. First, the general objectives of the institution should be determined. Thereafter, they should be divided into various departments, sub-departments and employees.
Objectives should be fixed keeping in mind the means of the institution and should be web-based and real. Objectives are the target points of the work to be done and determine the path of desired results. After determination, information about these objectives should be given to the concerned departments and employees so that they can assist in the planning of the project.
3. Establishing planning grounds and beliefs - The next stage of the planning process is to establish its bases. Planning grounds mean beliefs that create an environment for implementation of plans. These include various forecasts, basic policies and existing plans of the company, etc. Planning grounds can also be called forecasting. These bases may be related to the internal environment of the organization such as sales volume, production finance, labor, qualifications, managerial skills etc. These grounds can be controllable or uncontrollable, so they should be known through scientific methods of forecasting and trend analysis. The assumptions of planning should be clear and comprehensive and their information should be given to the officials related to planning.
4. Compilation and analysis of information- After determining the assumptions of planning, the facts and information related to the plan have to be compiled. These information can be collected from various internal sources like old records, files, existing policies, documents etc. As external sources, this information can be obtained from various government departments, rival institutions, customers etc. through market research, observation and interviews. After compiling and analyzing information, their usefulness in planning can be found.
5. Determination of alternate routes - In this phase alternative routes of work are searched based on various information, facts and assumptions collected. This step recognizes that there are many methods to perform any task, so the possible options for performing the task should be determined.
6. Evaluation of alternatives - This is an important stage of the planning process in which alternative methods are evaluated by doing comparative studies. They should be evaluated keeping in mind the relative benefits and demerits as well as the beliefs and goals of the institution. Calculative methods for evaluation and- Pert, c. P.M., functional research and statistical techniques etc. can be used. Each has its own benefit drawbacks. An alternative can be more profitable but more expensive and late giving benefits. If an option can be helpful in meeting the long-term goals of the firm, then in the fulfillment of specific goals, the options should be evaluated with extreme caution, imagination and foresight.
7. The choice of the best option - The choice of the best option can only be in accordance with the planning grounds, goals and future needs and means of the organization. This stage of planning is very important, because in this, the manager takes the decision and builds the plan. Sometimes a mixture of two or more options may be more appropriate for the institution than selecting one option. In such a situation the manager can coordinate the appropriate options.
8. Preparation of plan - After choosing the best option, the plan is prepared in detail. In this phase the successive stages of the plan are determined by considering various aspects of the plan. The entire plan is also seen from the point of view of the production department. The execution time of each stage of the plan is also determined. At this stage, the plan appears in its final form.
9. Formulation of Subsidiary Plans- For the successful implementation of the basic plan, it is necessary to construct several ancillary schemes. For example, if an organization plans to set up a plant for a new product, it will be recruited after the original plan, from staff recruitment, purchase of equipment and machines, development of maintenance facilities, production schedules, advertising, finance, insurance, etc. Related subsidy plans will also have to be made. Supporting plans can be formulated as departmental plans.
10. Determination of order and timing of actions - In this phase, the plan is divided into detailed actions and their order and time is determined so that the necessary tools, materials and tools can be arranged in a timely manner. Once the sequence is determined, it is known which action is to be started first and which then. By setting the time, execution of each task is possible at the right time.
11. Budget formulation - Any plan is incomplete without finance. The tasks set out in the scheme can be completed only by managing the heart, so with the finalization of the plan, its budget is also made. In this, provision is made for the financial amount to be spent on various activities of the scheme. Budgeting is also an important tool to control plans and evaluate the progress of plans.
12. Implementation of schemes- The importance of schemes lies in their implementation. They remain "paperwork" until they are given work. Effective implementation of the scheme can be done only after obtaining active support of the employees, hence they should be informed about every aspect of the scheme. By getting their ideas and taking care of their interests in the formulation of the scheme, their cooperation can also be obtained in the implementation of the schemes.
Principles of planning
1. Principle of time: While making the plan, the time of completion of the plan must be fixed so that time is taken care of in following various programs.
2. Theory of flexibility: Planning should be flexible as it is based on future forecasts. Planning should be flexible enough to minimize losses due to uncertain events. Flexibility means that the plan can be easily changed and new routes adopted.
3. The principle of efficiency: This principle of planning makes it clear that collective objectives should be achieved at minimum efforts and cost. The success of planning depends on how quickly the goals can be achieved. In planning, an attempt is made to give the work a systematic shape.
4. Principle of Change: According to this principle of planning, the manager should always keep checking his tasks like a sailor and keep making changes in the deployment as necessary to achieve the desired goals i.e. re-planning to meet the set objectives.
5. Principle of generality: This principle shows the general comprehensiveness of planning. It emphasizes planning at every level of management.
6. Principle of Mortgage: Planning should be very strong in terms of competition. This principle emphasizes planning keeping in mind the policies and procedures of competing institutions.
7. Principle of Limiting Factors: This principle emphasizes that while planning and evaluating various options, one should identify the limiting factors which are important for the achievement of goals and which can be a hindrance in planning.
8. Principle of Priority: According to this principle, planning is a primary function of management, so planning needs to be done before carrying out other managerial tasks.
9. Theory of facts: Planning is effective only if it is based on all available relevant facts, faces the facts and starts the proceedings indicated by the facts.
10. Principle of policy structure: This principle states that to make planning consistent and effective, strong policies, programs and frameworks should be created.
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