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Features & Importance of Planning

In this article, you will discover the features and the importance of planning in detail.
In this article, you will discover the features and the importance of planning in detail. 

Meaning

Planning is the primary function of management. All functions are based on planning. It involves deciding something to be done in advance. This is a rational process of sensible thinking and rational decision-making. Planning focuses on the company’s objectives and develops a variety of courses of action. making proper planning and executing accordingly is the key to fulfilling the goals of a company. 

In short, Planning can be described as "thinking in advance what is to be done when it is to be done, how it is to be done, and by whom it should be done".


In this article, you will discover the features and the importance of planning in detail.  Meaning Planning is the primary function of management. All functions are based on planning. It involves deciding something to be done in advance. This is a rational process of sensible thinking and rational decision-making. Planning focuses on the company’s objectives and develops a variety of courses of action. making proper planning and executing accordingly is the key to fulfilling the goals of a company.   In short, Planning can be described as "thinking in advance what is to be done when it is to be done, how it is to be done, and by whom it should be done".        Definitions: 1. Koontz and O'Donnell: "planning is deciding in advance what to do, how to do it when to do it, and who is to do it. Planning bridges the gap from where we are and where we want to go it makes possible things to occur which would not otherwise occur."   2. James stoner: "Planning is the process of establishing goals and a suitable course of action for achieving these goals."  Importance of Planning: The importance of planning is as follow:  1. Helps to set a clear goal: Planning helps to set a clear goal. This is concerned with establishing goals, targets and expressing plans to complete them. It assists managers to examine the present situation of the company on that basis to identify the methods of attaining the aspired position in the future.  2. Provides path of action: Planning assures that objectives are clearly stated. Planning act as a guide and they give us direction for doing correct things at the correct time with the correct method. It assists workers or employees to know what the company has to do and what they must do to get success.   3. Planning boosts performance: It assists managers to boosts the future performance of the employee by ascertaining objectives and selecting a course of action. It is beneficial for the company. Planning guides the efficient working of the employee. Due to proper planning, the worker or employees can act accordingly with timely guidelines. This development in performance results in bigger profitability for the company.  4. Reduce the risk: Planning is based on the forecasting system. It is the process of looking into the future and predicting future changes. By deciding in advance the tasks to be performed, planning shows the way you deal with changes and unpredictable circumstances. Risks cannot be eliminated totally but they can be predicted and can be stopped with preventive measures. It reduces the risk of the future.  5. Planning leads to maximum utilization of resources: Organizational plans are served by taking into consideration the availability of sources and fitting the allocation of resources for the important projects. It also helps maximum utilization of resources which brings higher performance and more satisfying results. One can bypass wastage of sources by correct planning.  6. Assists in decision-making: There are several options in front of the management. For gaining success planning assists the management to choose the best option by analyzing all positive and negative results of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal. It assists the manager to make sensible decisions.   7. Useful in setting the rules for managing Planning sets out rules for controlling. So, the actual efficiency can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such variation can be bridged by taking controlling steps. Therefore, planning gives the basis for control. It is also important for keeping discipline at the working place of the organization.   8. Facilitates Coordination of all activities: Planning helps the coordination of activities. it minimizes overlapping among activities. All activities of business organizations are closely linked with each other which is viewed in the method of planning. Sound planning inter-relates all activities and sources of an organization. Thus, different departments work as per the overall plan, and coordination is accomplished.   9. Helps other management functions: Every organization functions towards achieving aims, and aims are set at the planning step. Unless the plan is ready, other management functions such as organizing. Staffing etc. cannot be undertaken thus, planning benefits all other functions of management.   10. Promotes innovative ideas: The last importance of Planning is the primary function of management. It is a method of decision-making that includes the promotion of innovative ideas after significant thinking. Eventually, these plans succeed in the fulfillment of the purposes of the organization. It is the most challenging project for the management as it leads all future actions leading to growth challenging activity for the management as it guides future actions leading to the growth and success of the organization.              Features of planning Features of planning are as follow: 1. Planning is Pervasive: Planning is studied in all kinds of companies and each and every level of management. However, the nature and scope of planning are different at different companies and levels of management. For example, top managers plan for the company as a whole, while middle-level managers recommend departmental plans and lower-level managers formulate day-to-day operational plans.  2. Flexible: Planning is linked to the future and the future is unpredictable. Plans will fail to accomplish the objectives if adverse changes take place in the future. Managers have to be active in changing their plans so that changes do not break the plans. Thus, planning is a flexible activity.  3. Planning Aims at Efficiency: Plans are created to accomplish the objective in the best method. Efficiency means "the achievement with the last amount of resources." A plan is useless if it is not cost-effective. A good plan should give the highest reward at the last cost.   4. Planning is Endless: Plans are created for a specific time period. At the end of a specific time, new plans have to be made. In the same process, the current plans must be changed, when change takes place in the situations. Planning includes the selection and it is the process of deciding among alternative courses of action. Therefore, we can say planning is an endless process.  5. Planning is an Intellectual Process: Inventive thinking and the creation of planning is a rational exercise. It depends on the intellect of a human being. If a manager had foresight, vision, and sound judgment then he can prepare sound plans. This is only because planning is not more guesswork but involves logical and systematic thinking. A mental predisposition to think before acting is required in planning.  6. Planning is Future-Oriented: Planning is looking ahead and planning for the future which is based on the saying“look before you leap.” It is planning organizations to meet coming challenges and opportunities. To overcome the risk of the future, managers use the scientific methods of forecasting. They predict the future and combine changes in their actions to accomplish organizational goals completely.  7. Planning is Goal-Oriented: The last feature of Planning tries to achieve specific goals of the organization. Planning is a useful practice when it does participate in some positive way to the achievement of wanted objectives. It also guarantees the actions that would point to the desired results fast and economically.    Faq on planning 1. What are the 3 major importance of planning? Answer: 1. Helps to set a clear goal 2. Provides path of action 3. Planning boosts performance.  2. What are the Features of planning? Answer: Planning is Pervasive, Flexible, Planning Aims at Efficiency, Planning is Endless, Planning is an Intellectual Process.   References https://www.economicsdiscussion.net/business-forecasting/techniques-and-methods-of-business-forecasting https://byjus.com/commerce/planning/ https://kalyan-city.blogspot.com/2012/02/importance-of-planning-why-planning-is.html https://www.shaalaa.com/question-bank-solutions/explain-any-five-points-of-importance-of-planning-functions-of-management-planning_157249


Definitions:

1. Koontz and O'Donnell: "planning is deciding in advance what to do, how to do it when to do it, and who is to do it. Planning bridges the gap from where we are and where we want to go it makes possible things to occur which would not otherwise occur.

2. James stoner: "Planning is the process of establishing goals and a suitable course of action for achieving these goals."

Importance of Planning:

The importance of planning is as follow: 

1. Helps to set a clear goal:

Planning helps to set a clear goal. This is concerned with establishing goals, targets and expressing plans to complete them. It assists managers to examine the present situation of the company on that basis to identify the methods of attaining the aspired position in the future.

2. Provides path of action:

Planning assures that objectives are clearly stated. Planning act as a guide and they give us direction for doing correct things at the correct time with the correct method. It assists workers or employees to know what the company has to do and what they must do to get success. 

3. Planning boosts performance:

It assists managers to boosts the future performance of the employee by ascertaining objectives and selecting a course of action. It is beneficial for the company. Planning guides the efficient working of the employee. Due to proper planning, the worker or employees can act accordingly with timely guidelines. This development in performance results in bigger profitability for the company.

4. Reduce the risk:

Planning is based on the forecasting system. It is the process of looking into the future and predicting future changes. By deciding in advance the tasks to be performed, planning shows the way you deal with changes and unpredictable circumstances. Risks cannot be eliminated totally but they can be predicted and can be stopped with preventive measures. It reduces the risk of the future.

5. Planning leads to maximum utilization of resources:

Organizational plans are served by taking into consideration the availability of sources and fitting the allocation of resources for the important projects. It also helps maximum utilization of resources which brings higher performance and more satisfying results. One can bypass wastage of sources by correct planning. 

6. Assists in decision-making:

There are several options in front of the management. For gaining success planning assists the management to choose the best option by analyzing all positive and negative results of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal. It assists the manager to make sensible decisions. 

7. Useful in setting the rules for managing

Planning sets out rules for controlling. So, the actual efficiency can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such variation can be bridged by taking controlling steps. Therefore, planning gives the basis for control. It is also important for keeping discipline at the working place of the organization. 

8. Facilitates Coordination of all activities:

Planning helps the coordination of activities. it minimizes overlapping among activities. All activities of business organizations are closely linked with each other which is viewed in the method of planning. Sound planning inter-relates all activities and sources of an organization. Thus, different departments work as per the overall plan, and coordination is accomplished. 

9. Helps other management functions:

Every organization functions towards achieving aims, and aims are set at the planning step. Unless the plan is ready, other management functions such as organizing. Staffing etc. cannot be undertaken thus, planning benefits all other functions of management. 

10. Promotes innovative ideas:

The last importance of Planning is the primary function of management. It is a method of decision-making that includes the promotion of innovative ideas after significant thinking. Eventually, these plans succeed in the fulfillment of the purposes of the organization. It is the most challenging project for the management as it leads all future actions leading to growth challenging activity for the management as it guides future actions leading to the growth and success of the organization. 











Features of planning

Features of planning are as follow:

1. Planning is Pervasive:

Planning is studied in all kinds of companies and each and every level of management. However, the nature and scope of planning are different at different companies and levels of management. For example, top managers plan for the company as a whole, while middle-level managers recommend departmental plans and lower-level managers formulate day-to-day operational plans.

2. Flexible:

Planning is linked to the future and the future is unpredictable. Plans will fail to accomplish the objectives if adverse changes take place in the future. Managers have to be active in changing their plans so that changes do not break the plans. Thus, planning is a flexible activity.

3. Planning Aims at Efficiency:

Plans are created to accomplish the objective in the best method. Efficiency means "the achievement with the last amount of resources." A plan is useless if it is not cost-effective. A good plan should give the highest reward at the last cost.


4. Planning is Endless:

Plans are created for a specific time period. At the end of a specific time, new plans have to be made. In the same process, the current plans must be changed, when change takes place in the situations. Planning includes the selection and it is the process of deciding among alternative courses of action. Therefore, we can say planning is an endless process.

5. Planning is an Intellectual Process:

Inventive thinking and the creation of planning is a rational exercise. It depends on the intellect of a human being. If a manager had foresight, vision, and sound judgment then he can prepare sound plans. This is only because planning is not more guesswork but involves logical and systematic thinking. A mental predisposition to think before acting is required in planning.

6. Planning is Future-Oriented:

Planning is looking ahead and planning for the future which is based on the saying“look before you leap.” It is planning organizations to meet coming challenges and opportunities. To overcome the risk of the future, managers use the scientific methods of forecasting. They predict the future and combine changes in their actions to accomplish organizational goals completely.


7. Planning is Goal-Oriented:

The last feature of Planning tries to achieve specific goals of the organization. Planning is a useful practice when it does participate in some positive way to the achievement of wanted objectives. It also guarantees the actions that would point to the desired results fast and economically.


Faq on planning

1. What are the 3 major importance of planning?
Answer: 1. Helps to set a clear goal
2. Provides path of action
3. Planning boosts performance.

2. What are the Features of planning?
Answer: Planning is Pervasive, Flexible, Planning Aims at Efficiency, Planning is Endless, Planning is an Intellectual Process.


References