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Importance of Planning

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Neha is a Post Graduate from Delhi University in Commerce. Loves to write a verity subjects.

Provide an Opportunity to Analyze Alternative Courses of Action

 Planning forces managers to shake off their inertia and insular outlook; it induces them to look beyond those noses, beyond today and tomorrow, and beyond immediate concerns

Planning forces managers to shake off their inertia and insular outlook; it induces them to look beyond those noses, beyond today and tomorrow, and beyond immediate concerns

Importance of Planning


Planning is the most important function of an organization. The importance of the planning function should be clear to you to be an effective manager. We can outline the importance of planning function as explained below.

Importance of Planning Functions

Provide Direction: Planning provides a clear sense of direction to the activities of the organization and the job behavior of managers and his subordinates. It strengthens their confidence in understanding where the organization is heading, and what for, how best to make the organization move along the chosen path, and when should they take what measures to achieve the goals of the organization.

Provide an opportunity to analyze alternative courses of action: Another source of importance of planning is that it permits managers to examine and analyze the alternative courses of action with a better understanding of their likely consequences. If managers have an enhanced awareness of the possible future effects of alternative courses of action, for making a decision, or for taking any action, they will be able to exercise judgment and proceed cautiously to choose the most feasible and favorable course of action.

Reduce uncertainties: Planning forces managers to shake off their inertia and insular outlook; it induces them to look beyond those noses, beyond today and tomorrow, and beyond immediate concerns. It encourages them to probe and cut through complexities and uncertainties of the environment and to gain control over the elements of change.

Minimize impulsive and arbitrary decisions: Planning tends to minimize the incidence of impulsive and arbitrary decisions and ad hoc actions; it obviates exclusive dependence on the mercies of luck and chance elements; it reduces the probability of major errors and failures in managerial actions. It injects a measure of discipline in managerial thinking and organizational action. It improves the capability of the organization to assume calculated risks. It increases the freedom and flexibility of managers withing well-defined limits.

King-pin function: As stated earlier, planning is a prime managerial function which provides the basis for the other managerial functions. The organizational structure of task and authority roles is built around organizational plans. The functions of motivation, supervision, leadership, and communication are addressed to the implementation of plans and achievement of organizational objectives. Managerial control is meaningless without managerial planning. Thus, planning is the king-pin function around which other functions are designed.

Resource Allocation: Planning is a means of judicious allocation of strategic and scarce resources of the organization in the best possible manner for achieving the strategic goals of the organization. The strategic resources include funds, highly competent executives, technological talent, good contacts with government, exclusive dealer network, and so on. If the organization enjoys a distinct advantage in possession of such resources, careful planning is essential to allocate them into those lines which would strengthen the overall competitive position of the organization.

Resource use efficiency: For an ongoing organization, planning contributes towards a more efficient functioning of the various work units. There is a better utilization of the organization's existing assets, resources, and capabilities. It prompts managers to close gaps, to plug loopholes, to rectify deficiencies, to reduce wastage and leakages of funds, materials, human efforts, and skills so as to bring about an overall improvement in resource use efficiency.

Adaptive responses: Planning tends to improve the ability of the organization to effectively adapt and adjust its activities and directions in response to the changes taking place in the external environment. An adaptive behavior on the part of the organization is essential for its survival as an independent entity. For a business organization, for example, adaptive behavior is critical in technology, markets, products, and so on.

Anticipative action: While adaptation is a behavior in reaction and response to some changes in the outside world, it is not enough in some situations. In recognition of this fact, planning stimulates management to act, to take hold initiatives, to anticipate crises and threats and to ward them off, to perceive and seize opportunities ahead of other competitions, and to gain a competitive lead over others. For the purpose, some enterprises establish the environmental scanning mechanism as part of their planning systems. Thereby such enterprises are able to direct and control change, instead of being directed and controlled by the pervasive external forces of change.

Integration: Planning is an important process to bring about effective integration of the diverse decisions and activities of the managers not only at a point of time but also over a period of time. It is by reference to the framework provided by planning that managers make major decisions on organizational activities, in an internally consistent manner.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2009 Neha J

Comments

Shreya on September 10, 2014:

It's Very Very great information for students. Thanks for your help.

renz paligar on June 24, 2014:

yea ...you all rigth.....am a college student and alike AND proud to plan ......to become succesfull.......am in philliphines.......

Reshma khanal on September 09, 2013:

Planning is the best way to achive organiasonal sucess in our life. Without planning their is no future.planning help us to go in very smooth and safe way.

john simon on April 07, 2013:

planning is the alternatve way to be developed and be prosper

Jeseph Mukasa Tanzania on March 02, 2013:

Are people planning to fail or failing to plan. As a whole planning is the fundamental process for every indivdual/organization/institution whenever want to do anything.

Shanta on February 14, 2013:

good stuff

Alimamy Monrovia on December 03, 2012:

I live in Sierra Leone; Personally i consider planning to be synonymous to living a life as without planning one is already dead

soujanya on December 03, 2012:

this is really a very good explanation on planing

priya jain on November 08, 2012:

no planning no future

Oroma George from Lamwo -Uganda on August 22, 2012:

Planning reduces stress and poverty

lubisi lg on July 26, 2012:

planning refreshes our imagination abt unnessesary things

Kanika on July 16, 2012:

Planning is deciding in advance What is to be done ? Almost all managers are plan whether they are at the top , middle or bottom of organisation . Under planning we determine 1.What is to we done and Why? 2. When and Why whom the work is done? 3. How the work is to be done ? Planning is a mental process which means" first think and then do ".

roHAn m!tTAl on July 03, 2012:

This site is very useful because every knowledge about anything get from this site

Sulaimon idris alao on June 30, 2012:

4 someone to enter al-jannah(paradise) & also to enter hell fire it all base on a vital statement called PLANNING.sotherefore,planning assist every creation of allah 2 attain a specific aims either positive or negative.without planning human is like a motor without brake

Muhammad Gul on June 08, 2012:

planning is the best way for using of resource of an organization it gives long life to our organization

Abdullahi adamu muhammad on June 07, 2012:

This is a very good significance aspect of study that ,individuals stated and achives their goals or objectives in their lives.dat is good work.may god help us.

adeg dolly on June 05, 2012:

One has to plan to arrive at once focus, with good planning u will get there

Sean Farchik on May 22, 2012:

Pretty good work...!

amos esther (amest) from nigeria.amosesther18@yahoo.com on May 15, 2012:

planning determines what to do and how to do it.without planning the entire organisation will lack sense of direction, all activities in different unit will be uncordinated such that a state of confusion will emerge

StAngello on May 06, 2012:

I am preparing for my Management exams and One question that I came accross was the why do managers need to plan. And I must say thank you cause this gave me more than I expected.

sheron on April 28, 2012:

It is very imp to knw about planning bcoz due to planning organisational goal can be achieved . It is an imp part of management .

abhay on April 25, 2012:

planning is intellectual process which concerned with deciding in audience what when why how & who shall do the work................

Augustine Newman on April 24, 2012:

Every successful person will always have a plan.

Cheers!! for the good work, its very helpful.

Abubakar musa ahmed nsuk on April 23, 2012:

A good business entity must have a planning decision to execute d development of an organization

ankit on April 23, 2012:

i m lovin it thnx

Austine on April 22, 2012:

This is great I got helped

Obi Stanley (NSUK) on April 21, 2012:

A successful business is a PLANNED business. Obi Stanley, Business Administration, Nasarawa State University Keffi, Nigeria.

naveed ch on April 16, 2012:

valuiable data

Babalola Raphael on April 05, 2012:

planning is the first and perhaps the most important function of management,everybody plan no matter at what level. Rosco as my nick name from Nigeria.

binta ali on March 24, 2012:

hope it wil help me .

Ajit on March 05, 2012:

It was very helpful to inform about information of planning.thanks....

querence ann on January 29, 2012:

this is a great work for research, people dont plan to fail, they fail to plan.

Ezewi S. Uchenna on January 27, 2012:

Thats nice, good planning give a perfect success. Planning helps an organisation to withstand. Hubs thanks a lot.

otoke benson Uganda on January 10, 2012:

Nice without planning we can not succeed confirm

NDIANY OKELLO on December 19, 2011:

WHAT A WONDERFUL WORK!

NDIANY OKELLO on December 19, 2011:

WHAT A WONDERFUL WORK!

MINO MALAIKA on December 02, 2011:

GREAT WORK.

areez on November 22, 2011:

nice site very good i my very help that u r tellind to the persom about the importantces of god bellsing keep it up

her sas on November 22, 2011:

let us try it friends.

Dickson Patrick on November 19, 2011:

Planning makes you what you are today, As you plain it so it will be for you. Planning is the key.

myson on November 17, 2011:

its a great work dude, hope for those who have got it into their mind, they are now doing plan in their daily life. i got something big too cause i'm studying development

ABHI on October 28, 2011:

Success cannot be achieved without planning.Planning helps me a lot to achieve my objective.

THE ONE WHO PLANS WILL SUCCEED AT LAST.......

Sabila k. Anthony on October 25, 2011:

Reall good stuff ! Can't get enough of hubs page.kyambogo.

mhlengy on October 24, 2011:

a good piece of knowlegde, keep it up

Uche Manuel Ophory on October 17, 2011:

It's really good to plan in lyf!

bennie on October 12, 2011:

superior publication on planning

Stanley Gichira on October 06, 2011:

I like it.

vikas kumar on September 29, 2011:

this is my thinking advance of planning

Enock Gumbo on September 15, 2011:

This is a very good research.

france28 on September 07, 2011:

perfect

kumar Bipul on September 03, 2011:

yupppsssssssssss,this hub is really very helpful in making assingnments.thats a part of my plan to get good internal assessment marks.salute to this hub.

Eric on September 01, 2011:

What kind of plan i switable to small-scale businesses?i want to hear from you brothers and sisters.i'am in Rwanda

emmanuel on August 27, 2011:

Thank you hub. I find this subject useful, it helped me in my work.Indeed proper planning is one of the strategy that can assure success in every area of life.Thank you.

Koketso DeGeneres on August 25, 2011:

If you fail to plan,you plan to fail.

Richard Peter Haule. on August 18, 2011:

Thats all about plan, and even if an organization it needs a plan so as to go ahead... No plan no move..

Nkumbi on August 09, 2011:

Plan is a source of life,that it help us to do wark per year.

abhishek on August 07, 2011:

planning bridges the gap where we stand today & where we want

to reach

abhishek on August 07, 2011:

planning bridges the gap where we stand today & where we want

to reach

Khamis aka DELIMA on July 24, 2011:

No planning no development

Richard Peter Haule on March 31, 2011:

I'm a planner, i study in the Institute of Rural Development Planning which is allocated at Dodoma in Tanzania. May i question u dears, 'can a person live without planning?' for me even if i feel hungry i do plan on what should i eat at that juncture of the moment. And if i want to visit my friends home i also make a plan. MY NICK NAME IS VON HAUL RICHY ILIVE AT TANGA IN TANZANIA.

Von Haul Richy on March 31, 2011:

Everything needs plan. And always a planner is a life's tire.. That stands as a development initiator.

OCLEO on March 05, 2011:

plan helps me to be guided in all the things I want to do...

Jhazcy05081993 on February 21, 2011:

ahmmm. for me we should make a plan in order to become well-prepared in everything that we do...

Ahmed on February 12, 2011:

Life its self you must plan before you live

Rabson Yousuf on February 06, 2011:

Planning is really important. It provides a clear map to follow

keshav bagri on February 05, 2011:

this helps the class 12 student in their planning chapter ..

saba on January 30, 2011:

very gud written article..it helped me in m college work!

harvin M. Javier on January 22, 2011:

Nice hub... Keep it up...

For me planning is one of the most important in our daily life....

Edwin on January 09, 2011:

I hope this gonna help me

Julio on November 22, 2010:

thanks a lot. it really helped me in my research

RAJNISH SINGH on November 19, 2010:

we can allso men done

Murango on November 19, 2010:

I never plan I never achieve.

wamruu on November 12, 2010:

This is really good staff

biutuie on November 10, 2010:

People ignore planning lack sence of humour.

jo ann b dizon on July 01, 2010:

i believe the importance of planning in mans'life. Nice hub. Keep it up...

Neha J (author) from Delhi on April 14, 2010:

Thanks Prasetio30 for your visit and comment

online scam check from United Kingdom on January 20, 2010:

Nice hub, if you fail to plan - you plan to fail.

prasetio30 from malang-indonesia on December 27, 2009:

we can run our life well without planning. I agree with your hub. Really informative. We should consider about that. nice hub.