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Planning Function of Management

Failing to plan is planning to fail

Failing to plan is planning to fail

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 in management is closely connected with creativity and innovation. It involves setting objectives and developing appropriate courses of action to achieve these objectives.

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.

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

Also See:

  • The Five Functions of Management
    Functions of Management. Koontz and O’Donnel explained five functions of management. They are; Planning, Organizing, Staffing, Directing and Controlling.

Functions of Management

  • Evolution of Management Principles
    The first known management ideas were recorded in 3000-4000 B.C.
  • ORGANISING - Management principles
    Organisation is the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently...
  • DIRECTING - Management principles
    Directing means giving instructions, guiding, counselling, motivating and leading the staff...
  • Staffing Management Principles
    Staffing is the function by which managers build an organisation through the recruitment, selection, and development of individuals as capable employees.
  • Controlling - Management Principles
    The managerial function controlling always maximise the use of scarce resources to achieve the purposeful behaviour of employees in an organisation.

Principles of Management

  • Principles of Planning
    Principles of Planning : Planning is a dynamic process, it is very essential for every organisation to achieve their ultimate goals, but, there are certain principles which are essential to be followed so as to formulate a sound plan.
  • Principles of Organizing
    Principles of Organizing; Organizing can be effective only if managers follow some guiding principles in order to make important decisions and act upon them.
  • Principles of Directing
    Direction is always a complicated task as it involves dealing with employees of different kind. A manager can become successful in the skill of efficient direction by learning and practicing the basics of direction.
  • Principles of Staffing
    Principles of Staffing; Staffing process of management assists in obtaining the right talent and also nurturing it. Staffing principles which are universally accepted are not present.
  • Principles of Controlling
    Principles of controlling; Controlling is a procedure of ensuring that satisfactory progress has been made in accordance with the plans and noting down the experience benefited for achieving forth coming goals.

© 2009 Dilip Chandra


PRAKASH CHANDRA JAT from Rajsthan (India) on December 07, 2019:

its a real fact of life. nice

Rajesh Debnath on September 21, 2015:

Sir, Can you explain Why planning is all pervasiveness function of management? Please sir

matsabisa snazo on July 26, 2015:

I m stuck !!!jst need help on the functions of planning cycle

mabel on February 03, 2015:

This is very simple to understand.U have made my day.thanx

ata azizi on November 15, 2014:

Tanx from helping us in planning topic and wish u explain the nature of planning with more details

Bianca Chad on March 30, 2014:

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

Manoj Tirkey on March 11, 2014:

Good and Easy way to understand Planning

vidhya on September 06, 2013:

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

Dilip Chandra (author) from India on May 28, 2013:

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.

Kisandu Yohana from Dodoma, Tanzania on May 28, 2013:

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

Dilip Chandra (author) from India on May 14, 2013:

Hello monica karakoti, please refer to the following articles:

All about planning:

Importance of Planning:

Principles of Planning:

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)

monica karakoti on May 14, 2013:

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

Bazuaye chris ik on February 11, 2013:

planning is futuristic discuss?

ulala on December 11, 2012:

purpose of planning? is it same with the importance?

ajay on October 21, 2012:

pls more about features of planning

Mihir on September 05, 2012:

thnx a lot fr solving ma problem...!!! :-)

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

once again thnk u..

mika on August 08, 2012:

Without plan everything is unorganised

zung on July 13, 2012:

do u think making plan is essential for each organization?

what would b its best answer

jean on June 19, 2012:

can you have the "evolution of library management"

thank you

namanya eric on May 07, 2012:

am now ready for my exams on pom

Njen on May 05, 2012:

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

patrisha( on May 03, 2012:

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

Alfred, on March 02, 2012:

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

cbea stdent on February 10, 2012:

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

Mgmt student on February 06, 2012:

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..

jhonnalyn on January 12, 2012:

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

aisha on January 10, 2012:

do explain every point with examples!

amardeep sood on January 07, 2012:

thanks sir

Dilip Chandra (author) from India on December 02, 2011:

@ sanish, follow the links:

sanish on December 02, 2011:

can u explain about features of planning in more detail?

sanish on December 01, 2011:

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.

preeti on November 28, 2011:


preeti on November 15, 2011:

can explan more detail about importance of plnning

chandrika samanthi ramanayaka on November 08, 2011:

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



saqib on September 22, 2011:

u solve my solutions thank

swaroop on February 04, 2011:

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

Dilip Chandra (author) from India on January 15, 2011:

@ 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.

arcelie acal on January 14, 2011:

why is it that planning must include sicial responsibility?

Dilip Chandra (author) from India on November 26, 2010:

@ onjolo Robert

For Principles of Planning, follow the link:

onjolo Robert on November 26, 2010:

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

planning planning planning on November 20, 2010:

planning planning planning

Dilip Chandra (author) from India on November 01, 2010:

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

ProjectsConsult from World Wide Web on November 01, 2010:

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.

kimwizzy4life on October 17, 2010:

wow! Great staff! I love it

Dilip Chandra (author) from India on September 27, 2010:

thanks for the comments...

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

Article on Importance of Planning, follow the link:

azaj on August 22, 2010:

i want more detail about planning of principles

Rocko on August 22, 2010: make me tie my plan up easily.

jhone mans on July 28, 2010:

will u have a terminologies and and cpomplete details

farewell party on March 16, 2010:

i need more notes of the topic plannimg

kiran on January 18, 2010:

will u specefy principles of planning?

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