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Planning Function of Management

Planning in Management

Planning is deciding in advance what to do and how to do.It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. It involves setting objectives and developing appropriate courses of action to achieve these objectives.

Failing to plan is planning to fail
Failing to plan is planning to fail

Planning Definition

"Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen"

- Koontz and O'Donnel.

Importance of Planning

  • Planning provides directions
  • Planning reduces the risks of uncertainty
  • Planning reduces overlapping and wasteful activities
  • Planning promotes innovative ideas
  • Planning facilitates decision making
  • Planning establishes standards for controlling.

    (Read more on the Importance of Planning ...)

Features of planning

  • Planning focuses on achieving objectives
  • Planning is a primary function of management
  • Planning is pervasive
  • Planning is continuous
  • Planning is futuristic
  • Planning involves decision making
  • Planning is a mental exercise

Planning Process

Setting objectives: Objectives may be set for the entire organisation and each department or unit within the organisation.

Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjucture about what might happen in future.

Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them.

Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative.

Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented.

Implement the plan: This is concerned with putting the plan into action.

Follow-up action: Monitoring the plans are equally important to ensure that objectives are achieved.

(Read more on the Principles of Planning ...)

Types of Plans

Objectives: Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations.They serve as a guide for overall business planning.

Strategy: strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions,
(a) determining long term objectives,
(b) adopting a particular course of action, and
(c) allocating resources necessary to achieve the objective.

Policy: They are guides to managerial action and decisions in the implementation of strategy.

Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified steps to be followed in particular circumstances.

Method: Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed.

Rule: Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion.

Programme: Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.

Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument in many organisations.


 Last updated on August 10, 2014

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Comments 45 comments

kiran 4 years ago

will u specefy principles of planning?


farewell party 4 years ago

i need more notes of the topic plannimg


jhone mans 4 years ago

will u have a terminologies and and cpomplete details


Rocko 4 years ago

Wow...you make me tie my plan up easily.


azaj 4 years ago

i want more detail about planning of principles


dilipchandra12 profile image

dilipchandra12 3 years ago from India Hub Author

thanks for the comments...

here is the article on Planning Principles / Principles of Planning, follow the link:

http://hubpages.com/hub/Principles-of-Planning

Article on Importance of Planning, follow the link:

http://hubpages.com/hub/The-Importance-of-Planning


kimwizzy4life 3 years ago

wow! Great staff! I love it


ProjectsConsult profile image

ProjectsConsult 3 years ago from World Wide Web

This Hub is very well organized. Clearly you did the planning before putting it on HubPages. I never before thought of planning as being "creative and innovative," like that perspective.


dilipchandra12 profile image

dilipchandra12 3 years ago from India Hub Author

@ ProjectsConsult Thank you so much for such a very wonderful appreciating comment.


planning planning planning 3 years ago

planning planning planning


onjolo Robert 3 years ago

would you talk about the principles of planning, and their roles?


dilipchandra12 profile image

dilipchandra12 3 years ago from India Hub Author

@ onjolo Robert

For Principles of Planning, follow the link: http://hubpages.com/hub/Principles-of-Planning


arcelie acal 3 years ago

why is it that planning must include sicial responsibility?


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dilipchandra12 3 years ago from India Hub Author

@ arcelie acal

The main purpose of business activity is the satisfaction of 'socially desirable' needs, i,e, needs that are compatible with long run public welfare. Such need satisfaction will tend to bring about improvements in the quality of private and public life. Corporate planning should thus facilitate the performance of business activities designed to achieve the satisfaction of socially desirable needs.

The determination of what are socially desirable needs will be based on public consensus, which corporations should periodically assess, and incorporate into their long range plans. A long-range planning procedure, incorporating social welfare considerations should be developed. It is suggested that a planning procedure such as this is essential for the existence of firms in the long run.


swaroop 3 years ago

your style of explanation is awesome. thanks for sharing, i have understood the above topic with no difficulty.


saqib 3 years ago

u solve my solutions thank


chandrika samanthi ramanayaka 2 years ago

your notes are so simple , uniform and enthusiastic for further reading. the pictures are too match with texts-

congratulations

samanti


preeti 2 years ago

can explan more detail about importance of plnning


preeti 2 years ago

thanks


sanish 2 years ago

u are so wonderful on ur work. do u have publish any book regarding management course. if u have please provide me some detail so that i can buy and read it.


sanish 2 years ago

can u explain about features of planning in more detail?


dilipchandra12 profile image

dilipchandra12 2 years ago from India Hub Author


amardeep sood 2 years ago

thanks sir


aisha 2 years ago

do explain every point with examples!


jhonnalyn 2 years ago

will you specify what is the aspects of planning and the purpose and mission.


Mgmt student 2 years ago

I hav "Implementation of Plan" as a "Planning FUnction" in my syllabus .... I need help.... if possible please post something about it or give me a LINK if you have any..


cbea stdent 2 years ago

can we use futuristic planning in present market development? please help!


Alfred, 2 years ago

this is wonderful! may clarify why some manager s may fail despite planning.


patrisha(east2pat2003@yahoo.com) 2 years ago

You have realy helped me with my assigment..stay blessed and thank you


Njen 2 years ago

Woa! U're a genius and thanks for the knowledge u share with we all!!! Thank u very much!!


namanya eric 2 years ago

am now ready for my exams on pom


jean 2 years ago

can you have the "evolution of library management"

thank you


zung 2 years ago

do u think making plan is essential for each organization?

what would b its best answer


mika 2 years ago

Without plan everything is unorganised


Mihir 2 years ago

thnx alot fr solving ma problem...!!! :-)

nw it wud be easy fo me to make ppt on planning...

once again thnk u..


ajay 23 months ago

pls more about features of planning


ulala 21 months ago

purpose of planning? is it same with the importance?


Bazuaye chris ik 19 months ago

planning is futuristic discuss?


monica karakoti 16 months ago

sir, cud u plz explain , in board xm , hw we have to present our answer, if the ques is xplain importance or limitations or nything of planning? hw we will describe those points!! please reply as much as soon u cn! thanku


dilipchandra12 profile image

dilipchandra12 16 months ago from India Hub Author

Hello monica karakoti, please refer to the following articles:

All about planning: http://dilipchandra12.hubpages.com/hub/PLANNING---...

Importance of Planning: http://dilipchandra12.hubpages.com/hub/The-Importa...

Principles of Planning: http://dilipchandra12.hubpages.com/hub/Principles-...

Your answer for the question on planning;

- Introduction about planning in brief,

- Definition of planning,

- Features of planning,

- Importance of planning (In detail, if the question is on Importance of planning / in brief, if the question is on limitations of planning)

- Limitations of planning (In detail, if the question is on Limitations of planning / in brief, if the question is on Importance of planning)


Kisandu Yohana profile image

Kisandu Yohana 16 months ago from Dodoma, Tanzania

Yah! it's good but can you help me this question? " why most of managers resign?"


dilipchandra12 profile image

dilipchandra12 16 months ago from India Hub Author

Hello Kisandu Yohana, here are some of the potential reasons.

Manager unable to meet the company strategic goals. In this situation, the manager sometimes takes the responsibility and resigns from his position on his own.

Generally, every manager is bonded with the company he is working with. But, when a Company could provide hardly any incentive and other benefits, the manager quits finding a better opportunity.

Personal bias to a particular employee by the senior management also would lead to the submission of resignation by a manager who was deprived of either the incentive or the promotion in his work place despite of his hard work.

Often changing the rules and regulations also would lead to quitting of the job by a manager. When rules and regulations are often changed by the organization, the manager feels very frustrated bearing a thought in his mind that heavy stress would make him unable to achieve any objectives of the company in the right approach and the desired time.

Senior authority of the company should respect the cultural and religious traditions of the sub-ordinates. Despite allowing him to participate in his cultural and religious occasions, if he is subjected to heavy work pressure this would lead to voluntary walk out of the manager from the organization to search for a better institute.

Recession effect and deal broken with the manager. During the recession, every organization tries to cut-down its cost. In this regard, the organization removes some personnel and assigns the entire responsibility of achieving the organizational goals to the existing employees. In this situation when a company tries to cut-down its cost further and lowers the pay of the manager, it would lead to the deal broken. In consequence, the manager steps down from his position and searches for other opportunity.

Change in the environment also would force the manager to quit his job. When his work place is changed to other city or town or branch also where he doesn't wish to work and would like to continue in the same environment and in this situation if he is insisted to move to the new environment the manager probably might quit his job.


vidhya 12 months ago

i am management student u r very usefully then,why representation manager of company?


Manoj Tirkey 6 months ago

Good and Easy way to understand Planning


Bianca Chad 5 months ago

This z ril gud.....duin gr8 in my assignments...thnx a lot

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