Principles of Planning

Important Planning Articles

• PLANNING - Management principles
  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.
• The Importance of Planning
  Importance of Planning Function. Planning is a process which involves the determination of future course of action, i.e. why an action, how to take an action, and when to take action are main subjects of planning...

Management Planning Principles

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. They are only guidelines in the formulation and implementation of plans. These principles of planning are as follows:

1. Principle of Contribution: The purpose of planning is to ensure the effective and efficient achievement of corporate objectives, in-fact, the basic criteria for the formulation of plans are to achieve the ultimate Objectives of the company. The accomplishment of the objectives always depends on the soundness of plans and the adequate amount of contribution of company towards the same.
2. Principle of Sound and Consistent Premising: Premises are the assumptions regarding the environmental forces like economic and market conditions, social, political, legal and cultural aspects, competitors actions, etc. These are prevalent during the period of the implementation of plans. Hence, Plans are made on the basis of premises accordingly, and the future of the company depends on the soundness of plans they make so as to face the state of premises.
3. Principle of Limiting factors : The limiting factors are the lack of motivated employees, shortage of trained personnel, shortage of capital funds, government policy of price regulation, etc. The company requires to monitor all these factors and need to tackle the same in an efficient way so as to make a smooth way for the achievement of its ultimate objectives.
4. Principle of Commitment: A commitment is required to carry-on the business that is established. The planning shall has to be in such a way that the product diversification should encompass the particular period during which entire investment on that product is recovered.
5. Principle of Coordinated Planning: Long and short-range plans should be coordinated with one another to form an integrated plan, this is possible only when latter are derived from the former. Implementation of the long-range plan is regarded as contributing to the implementation of the short-range plan. functional plans of the company too should contribute to all others plans i.e. implementation of one plan should contribute to all the other plans, this is possible only when all plans are consistent with one another and are viewed as parts of an integrated corporate plan.
6. Principle of Timing: Number of major and minor plans of the organisation should be arranged in a systematic manner. The plans should be arranged in a time hierarchy, initiation and completion of those plans should be clearly determined.
7. Principle of Efficiency: Cost of planning constitute human, physical and financial resources for their formulation and implementation as well. Minimizing the cost and achieving the efficient utilization of resources shall has to be the aim of the plans. Cost of plan formulation and implementation, in any case, should not exceed the organisations output's monetary value. Employee satisfaction and development, and social standing of the organisation are supposed to be considered while calculating the cost and benefits of plan.
8. Principle of Flexibility: Plans are supposed to be flexible to favour the organisation to cope-up with the unexpected environments. It is always required to keep in mind that future will be different in actuality. Hence companies, therefore, require to prepare contingency plans which may be put into operation in response to the situations.
9. Principle of Navigational Change: Since the environment is always not the same as predicted, plans should be reviewed periodically. This may require changes in strategies, objectives, policies and programmes of the organisation. The management should take all the necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of the organisation.
10. Principle of Acceptance: Plans should be understood and accepted by the employees, since the successful implementation of plans requires the willingness and cooperative efforts from them. Communication also plays a crucial role in gaining the employee understanding and acceptance of the plans by removing their doubts and misunderstanding about the plans also their apprehensions and anxieties about consequences of plans for achievement of their personal goal.

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

• Planning Function of Management
  
• Directing Function of Management
  
• Organising Function of Management
  
• Staffing Function of Management
  
• Controlling Function of Management
  

Principles of Management

• Principles of Planning
  
• Principles of Directing
  
• Principles of Organizing
  
• Principles of Staffing
  
• Principles of Controlling
  

Comments

Tadewos Zewude on October 19, 2019:

Very good note

Apoorva on January 19, 2019:

Thank-you so much for this short note

Abdilahi Nchasi on April 14, 2018:

Thanks for your nice notes about Planning i lent a lot from you keep me on updating and lecturing

mellissa on September 26, 2017:

thank you so much 4 this short notes

Abhi on August 20, 2017:

Super and fantaaaaastic I understood very easily

kimaiyo on July 05, 2017:

Excellent

KEMUNTO on January 31, 2017:

Why Family, Friends, and Strangers Should Stop Saying These 5 Things to New Parents

Wife, Husband, Marriage: What Is Behind All This?

Haiku Collection

very useful thanks for providing this information

Pankaj Chaudhari on December 30, 2016:

Nice information ....

It is helpful for me

Thanks for providing this information ...

suraj on December 24, 2016:

Thank you

vindicated Gh on November 28, 2016:

Nice,easy,precise and accurate notes that can help erase the misunderstandings of students

BRAVO

OKOTH DOMNIC,MUT,HRM on October 18, 2016:

very optimistic notes to be read,thanx

alice on October 21, 2015:

thanks it has really helped me alot

Fredrick Odindo on August 05, 2015:

I gained more. Thanks for the good work, keep it up.

devika bisht on April 28, 2015:

interesting notes

lelit on March 05, 2015:

I just like this! keep it up.

oge on May 29, 2014:

thanks for your knowledge, I appreciate.

Mark on November 21, 2012:

Thank you so much. I will include this in my report :)

ankit on September 13, 2012:

toooo goood

anita saru on September 02, 2012:

Thank you a lot .It helped me a lot for my exam. Well done and keep it up.

raj on April 27, 2012:

best !!

sena from Sri lanka on April 26, 2012:

Thanks and I appreciate u. Well explained.Simple

Peter kiplimo on March 06, 2012:

Wel understood

stany on February 18, 2012:

nice work...keep it up!

Ifeanyi on February 16, 2012:

Nice one....

Khalid on February 12, 2012:

re great information very useful

NEERAJ PANDEY on January 21, 2012:

goog yr......very nice

ASFER AHMED on December 02, 2011:

good

alen on November 19, 2011:

Good keep it up

preeti on November 15, 2011:

good

Phillip on September 05, 2011:

keep it up

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

sameerk - Thanks for the comment...

sameerk from India on September 27, 2010:

very well written, keep it up