In this article, I will explain the meaning, features, characteristics, importance, and objectives of planning in management and in an organization.
Meaning of Planning-
What is Planning??
Planning is the process or function of management by which an organization can analyze or predict the business activities which are related to the object and their future goals. In an organization, the managers help to plan the business activities at all levels of management like; top, middle, or lower level.
In top-level management, the managers plan for the whole organization, in middle-level management, the managers plan for their particular departments, and in lower level management, the managers do plan for day-to-day business works.
In other words, planning is considered as a primary function of management, it means making decisions regarding, what to do, when to do, why to do, how to do, and where to do.
— ‘What’ indicates the particular actions that have to choose to acquire the tasks,
— ‘When’ indicates the time position,
— ‘Why’ indicates the purpose or object which the business wants to achieve,
— ‘How’ indicates framing plans, policies, and procedures,
— ‘Where’ indicates the place for planning (like domestic, national, or international place).
Features of Planning-
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In this, it includes various points to explain the features of planning in management or in an organization.
(i) Primary function or process-
Planning is the primary function of management and all other relevant functions follow the planning. If planning of an organization is wrong, then the organization has to face a huge amount of loss or drawbacks.
So, that is the reason, when the planning is executed, then all the merits or demerits are considered at that time so that an organization has no problems or loss in the future.
(ii) Continuous activity-
Planning is a part of a continuous process because it wants a flow of ideas and thoughts for executing a particular task. It is executed so that the business can survive in the changing environmental scenario.
In this, managers help to target environmental changes like competitor analysis, consumer perceptions, tastes and preferences, economic policies, values, and so on. These factors also help to determine the survival growth of a particular business.
Planning is always looking forward. It helps to fill the gap between where we are and where we want to go. It always works for the organization to meet or face future benefits or opportunities or challenges also.
It is said that the future is uncertain. So, that is the reason a manager tries to forecast future conditions through scientific methods or measurements so that the organization can achieve its goals and also create a healthy environment.
Planning is done, when the object of an organization is completed. If we plan in an organization, then there is also a particular motive that we know by the name of the goal of the organization.
So, that is the reason, goal oriented is also a main feature of planning in management and also in an organization. The goal helps to define the profit capacity of a business and profit capacity of business helps to define the goodwill of a business.
(v) Pervasive Function-
Planning is also known as a pervasive function. It is applicable in all organizations like business or non-business, small or big, profitable or non-profitable. In an organization, it is done at all levels of management (whether it is top, middle, or lower).
Characteristics of Planning-
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The characteristics of planning in management or in an organization include various points such as:-
(i) Intellectual process or activity-
It is a complex process. If a manager wants to make a plan, then it will have to do research on past, present, and future environmental conditions. It is difficult to analyze because the future always keeps changing.
In this, the manager thinks rationally and also prepare a sound plan for making effective decisions.
Efficient means are effective in cost. In this, we have to spend on two things; first is time and second is money because it helps the planning to earn gains in the future.
The motive of this point is that the work of an organization should be in a systematic and proper manner so that it can easily achieve the objectives of an organization.
Planning is always predicted for the future because of the planning is uncertain and also fails to achieve objectives, if unexpected can changes take place in the upcoming future.
In this, the managers need to be very active so that they can face the problems in the future and also save our company or organization from any unexpected issues.
(iv) Planning and Decision making-
Planning involves decision making because it helps to choose individual goals out of various multiple goals and deciding about ways to acquire them out a number of respondents, deciding about sources of funds, deciding about optimum utilization of resources, and so on are some of the activities and factors that executives make to run an organization in an effective manner.
If planning is executed, then it is very important to control it too. It indicates the future course of actions and control to indicate those actions are carried out. Planning frames the plans and procedures for the achievement of organizational objectives.
In this, the controlling function plays a very important role because it helps to predict the action between actual performance and planned performance.
(vi) Open system method-
In today’s world, almost all types of organizations, follow the open system as they interact with the environment changes (whether it is internal or external). Its follow the policies of (inputs-conversion process-outputs) in their desire to achieve a particular objective.
Therefore, this approach or method helps the organization in responding to environmental challenges.
Importance of Planning in Business-
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Planning is very important because it enables the organization to grow and mature in a fast-changing business environment. It helps to provide the basis between successful and unsuccessful organizations. In the fast-changing environment, planning helps to give the power to face the challenges and forecasting future plans also.
So, the importance of planning in management or in an organization includes various points such as:-
(i) Achievement of organizational objectives-
This is the first importance of planning and it means that it helps the organization to achieve its particular goals. Planning provides a way for the achievement of organizational goals with minimum cost, waste of time, and energy also. It also helps to maintain the gap between where we are and where we want to go.
(ii) Fulfillment of organizational commitments-
In an organization, the management has two types of commitments such as long term and short term towards society. They both terms are very essential feature point of an organization.
(iii) It facilitates decision making-
Decision making helps in deciding what to do when an executive face problem-solving situations or parameters and adopting the perfect way out of the alternatives available courses/ways of doing it.
It can be called a process of choosing the best course of actions from two or more types of alternatives.
In this, the managers take decisions on several things like what to produce, how to produce, what amount of organizational resources are used, what are their primary goals (whether it is profit or social responsibility).
(iv) It provides stability-
Organizations plans and procedures are very stable in nature. Managers forecast the risks and prepare the organization to face them when they occur.
Planning executes all other managerial functions and acquiring or co-ordinates them for maintaining stability in an organization. In other words, an organization wants to promote group efforts and teamwork to give the right direction to organizational tasks.
An organization is a formulation of relationship where authority and responsibility are clearly discussed. Planning co-ordinates the managerial functions for establishing a meaningful object. It transfers all the works according to their departments so that they work according to plans.
Objectives of Planning in Business-
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The objectives of planning in management or in business or in an organization include various points such as:-
(i) Optimum utilization of resources-
In an organization, the resources are very limited in nature. Planning assembles these resources according to their objectives and functional areas like production, finance, personnel, and marketing department.
These departments help the organization to use the resources in an effective way so that the output gain more and more sales volume.
(ii) Development of managers or executives-
Planning is the integration of feelings, ideas, thoughts, and creativity by managers. Through these, the managers develop their conceptual or analytical skills to plan and coordinate them in an effective or efficient manner. Thus, organizational objectives will be achieved.
(iii) Promotes innovation-
Planning is also known as forecasting of something. Managers predict future activities to analyze the strengths and weaknesses of their competitors and think to develop or innovate existing products.
It also promotes new ideas, new concepts, new techniques, new relationships and at the last they promote creativity and as well as innovation.
(iv) Helps to reduce the risks-
A risk is a type of situation where reasonably execute information is available about the future but it is incomplete. On the other hand, it is also a situation where no information is available about the future.
(v) Enhance the moral-
In an organization, if plans are achieved, then the managers and employees feel satisfied and also enhance the moral with the achievement of organizational objectives.
Successful planning is always a positive attitude towards the success of an organization because it helps to increase the level of standards and the next planning cycle.