Written by Planning is the systematic process of identifying the objectives of an organization and determining the best course of action to take to achieve these objectives.
It is a process of setting goals and deciding how to achieve them.
Planning can also be defined as anticipating future events and determining the best course of action to attain specific goals and objectives.
According to Koontz, Planning is defined as “deciding in advance – what to do, when to do & how to do. It bridges the gap from where we want to be”.
Planning is deciding the best alternatives among others to perform different managerial operations to achieve the predetermined goals.–Henry fayol”
It is the systematic and rational way of making decisions today that will affect the future of the organization.
Planning involves analyzing the current situation, identifying alternative courses of action, evaluating them, and choosing the best one.
It is the primary managerial function that involves identifying the organizational goals, creating a strategy for achieving the goals and developing plans for the work activities of the organization.
Planning is a never-ending activity as managers must regularly modify and revise their plans in light of new situations and variables.
The main purpose of planning is to give management a roadmap of what they should do in the future to achieve the organizational goals.
Features of Planning
Planning has some distinctive features that make it different from other functions of management. Some of these features are:
1. It is futuristic: Planning is concerned with the future, not the past or present.
It involves forecasting, anticipating what will happen in the future, and preparing for it accordingly.
2. Planning is the primary function of management: Planning is the first and foremost function of management as it precedes all other functions.
Without planning, there can be no organizing, staffing, directing, or controlling.
Indeed, all other functions are performed within the framework of the laid down Plans.
Therefore, if there is no plan, there is every likelihood that the other function of management would be ineffective.
3. It is a continuous process: Planning is a continuous process, not a one-time event.
It is a continuous process that involves setting goals, developing strategies, and taking action.
The plan itself may change over time as new information becomes available or as the environment changes, but the planning process will always be continuous.
4. Planning is pervasive: Planning is not limited to any level or department of the organization.
It is a function of all levels of management.
All managers, regardless of their position in the organization, are required to make at least one plan.
Planning is not just the function of top managers or the staff members of the planning department, it is also the function of middle-level managers and lower-level managers.
All managers, regardless of their department and level, require planning to achieve organizational goals effectively and efficiently.
5. Planning involves making decisions: Planning is essentially about anticipating future events and choosing the course of action to follow from the many alternatives available.
When you plan, you are essentially saying, “This is what I want to achieve, and this is how I am going to achieve it.”
The “how I am going to achieve it” part is the decision-making part of planning.
6. It is flexible: Plans are made based on forecasts.
Since the future may not turn out as expected, planning must be flexible enough to accommodate changes in future conditions.
7. Planning is intellectual: Planning requires creativity, imagination, and logical thinking from managers.
Planning involves the manager making sound judgments and thinking rationally.
Hence, it is an intellectual process.
8. It is goal-oriented: Planning is not just done for pleasure, it is done to achieve certain objectives.
Planning is always directed toward achieving specific and predetermined objectives.
These objectives provide direction and purpose to the planning process.
Importance Of Planning
1. Puts focus on the objective: When plans are made, the objectives of the organization will be clear and free of any ambiguity.
With a plan in place, the objective of the organization is clear and everyone in the organization understands what is expected of them.
2. Planning makes decision-making easier: Planning assists organizations in determining the best course of action to take.
This is because planning provides a structured framework for decision-making.
Planning involves analyzing alternatives, weighing pros and cons, and selecting the best course of action.
Through planning, managers can make informed decisions based on available information and desired outcomes.
3. Helps in anticipating problems and deviation: Planning is the anticipation of future events and deciding on the course of action to be taken.
In anticipating future events, a business will have to collect relevant data and information which will help it in forecasting the future accurately.
This will help the business to identify potential problems and deviations from the plan early on so that they can be dealt with promptly.
4. Tackles uncertainty: Planning helps a business anticipate and prepare for possible changes and challenges in the future.
This is because planning involves identifying potential opportunities and threats.
By Identifying these potential changes and challenges, planning helps a business to bring about some certainty to an otherwise uncertain future
5. Resource Allocation: Planning allows managers to allocate resources effectively.
It involves assessing the requirements of different tasks or projects and allocating resources such as finances, personnel, time, and materials accordingly.
This helps to ensure that resources are used efficiently and effectively.
Advantages of Planning
1. Makes for easy achievement of organizational goals: To achieve organizational objectives and goals, managers must first carefully plan and set objectives
Once these objectives have been established and are well-defined, it becomes easier to achieve the goals of the organization.
2. Promotes better coordination: When the plans and objectives are clearly stated, It creates a sense of unity in achieving the goal.
Planning provides a roadmap for coordinated actions toward achieving organizational goals.
When the right plan is in place, Individuals and teams are aware of what they are working towards and can align their efforts accordingly.
Planning creates a sense of shared understanding, which helps to eliminate confusion and ensures that every available resource of the organization is being pulled towards achieving organizational goals.
3. Ensures better utilization of resources: Planning ensures better utilization of resources by selecting the most efficient course of action to achieve organizational goals.
It helps prevent inefficient use of resources by evaluating options and choosing the best approach.
By planning, organizations optimize resource utilization and minimize waste, leading to more effective achievement of objectives.
4. Required for controlling: Planning and controlling are complementary functions of management that work together to ensure the success and efficiency of an organization.
While planning set the objectives and laid down performance standards, controlling helps check for deviation from standards and plans.
When deviations from the plans or standards are identified through controlling, corrective actions can be taken to bring performance back in line with the objectives.
A good planning system is, therefore, essential for effective controlling, as it provides the basis for measuring and managing performance in alignment with organizational goals.
5. Improves worker motivation: Planning improves worker motivation by providing clarity on their roles in the organization.
When employees have a clear understanding of their roles, responsibilities, and objectives, they are more motivated to perform their tasks effectively.
Knowing what is expected of them enables employees to focus their efforts, set priorities, and work towards specific goals, which boosts their motivation and engagement.
Limitations or Criticisms Of Planning
1. Bound to be effective: The effectiveness of planning is contingent upon the accuracy of available data and forecasts from which it is derived from.
However, if the available data is incorrect or unreliable, the planning process may be flawed, leading to ineffective outcomes.
Additionally, the effectiveness of planning can be compromised by changes in estimated or anticipated conditions.
Planning is based on assumptions about the future, and if these assumptions do not align with the actual conditions, the plan may become ineffective.
2. Influenced by external factors: External factors, which are outside the control of planners, sometimes limit the effectiveness of planning.
For instance, if an unforeseen event like a war occurs, it can render a manager’s plan irrelevant and obsolete.
Such external factors introduce uncertainties that can render the plan useless.
For example, if a war breaks out, a manager’s plan may become obsolete and irrelevant.
3. Time-consuming: The benefits of planning are sometimes diminished by the time factor.
The process of collecting, analyzing, and interpreting information for planning purposes takes time and resources.
if planning isn’t thoroughly completed, many business operations may be pushed back or delayed.
In fact, In certain situations, when time is crucial, advanced planning may not be suitable.
For instance, in urgent production decisions, waiting for a comprehensive planning process to be completed may not be feasible.
Immediate action might be required, and decisions must be made promptly without extensive planning.
4. Unsuitable for emergencies: Due to its time-consuming nature, planning may not be suitable for emergencies.
If, for example, the government put legislation that requires that every business take certain actions immediately, planning may not be required.
What is required here is quick action, which may not necessarily involve planning.
5. Planning creates rigidity: The existence of a plan imposes a rigid framework on a manager’s activities.
When plans are in place, there is an inherent expectation to follow them closely, limiting flexibility in decision-making and responsiveness to new circumstances
Managers must carry out their responsibilities by their plans, and deviations from those plans may not be tolerated.
This makes managers and employees inflexible to changes in the business environment.
Furthermore, the rigidity imposed by planning can discourage innovation and creativity.
Managers and employees may feel constrained by the predetermined course of action, suppressing their ability to explore alternative approaches or experiment with new ideas.
6. It is subject to misdirection: Planning may be misdirected to serve individual interests rather than organizational interests.
This is because planning is done by individuals and these individuals have their likes, dislikes, preferences, and interest.
All of these may be reflected in the planning.
