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The Importance of Planning

Planning Importance in Management

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. Check under the Importance of planning in the words of McFarland.

"Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change".

- McFarland

Plan your work & work your plan

Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of the future.

Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of the future.

  • 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.
  • 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....

Importance of Planning

  1. Planning increases the organization's ability to adapt to future eventualities: The future is generally uncertain and things are likely to change with the passage of time. The uncertainty is augmented with an increase in the time dimension. With such a rise in uncertainty there is generally a corresponding increase in the alternative courses of action from which a selection must be made. The planning activity provides a systematic approach to the consideration of such future uncertainties and eventualities and the planning of activities in terms of what is likely to happen.
  2. Planning helps crystallize objectives: The first step in planning is to fix objectives which will give direction to the activities to be performed. This step focuses attention on the iesults desired. A proper definition and integration of overall and departmental objectives would result in more co-ordinated inter-departmental activities and a greater chance of attaining the overall objectives.
  3. Planning ensures a relatedness among decisions: A crystallization of objectives as mentioned above would lead to a relatedness among the decisions which would otherwise have been random. Decisions of the managers are related to each other and ultimately towards the goals or objectives of the enterprise. Creativity and innovation of individuals is thus harnessed towards a more effective management of the company.
  4. Planning helps the company to remain more competitive in its industry: Planning may suggest the addition of a new line of products, changes in the methods of operation, a better identification of customer needs and segmentation and timely expansion of plant capacity all of which render the company better fitted to meet the inroads of competition.
  5. Adequate planning reduces unnecessary pressures of immediacy: If activities are not properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and avoids unnecessary pressures.
  6. Planning reduces mistakes and oversights: Although mistakes cannot be entirely obviated, they can certainly be reduced through proper planning.
  7. Planning ensures a more productive use of the organization's resources: By avoiding wasted effort in terms of men, money and machinery, adequate planning results in greater productivity through a better utilization of the resources available to the organization.
  8. Planning makes control easier: The crystallization of objectives and goals simplify and highlight the controls required.
  9. Planning enables the identification of future problems and makes it possible to provide for such contingencies.
  10. Planning can help the organization secure a better position or standing: Adequate planning would stimulate improvements in terms of the opportunities available.
  11. Planning enables the organization to progress in the manner considered most suitable by its management: Management, for example, may be interested in stability and moderate profits rather than huge profits and risk of instability. In terms of its objectives, the plan would ensure the actions are taken to achieve such objectives.
  12. Planning increases the effectiveness of a manager: As his goals are made clearer, adequate planning would help the manager in deciding upon the most appropriate act.

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.
  • Successful Job Interview Tips
    Job Interview Tips; Tips for the Interviewee, Tips for the Interviewer. Job interview is regarded as one of the most effective tools for assessing the aspiring employees.
  • Effective Resume Writing
    Do’s and Dont’s in Resume; A resume is generally called as curriculum vitae, It is regarded as an important and credible review of a person’s educational qualifications for seeking employment.

Is planning a waste of time in relation to unpredictable future?

Planning in organization is the process of creating and maintaining a plan. It is a process of thinking about the activities required to accomplish a desired task or reaching the organisational goal. Choosing a destination, evaluating alternative routes, and deciding the specific course of the plan, in short, are the major steps involved in the process of planning.

Future is always unpredictable, market trend is always dynamic. Only through a proper and flexible planning future uncertainties can be tackled efficiently. Hence planning is never a waste of time in relation to unpredictable future. In fact planning is more essential to deal with the future unforeseeable trends.

Important Articles on Management Principles

  • Evolution of Management Principles
    Early Perspectives | Classical Management Theory | Neo Classical Theory / Human Relations Approach | Management Science / Operational Research | Modern Management
  • DIRECTING - Management principles
    Directing means giving instructions, guiding, counselling, motivating and leading the staff in an organisation in doing work to achieve Organisational goals. Directing is a key managerial function to be...
  • 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.
  • 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.


Nkem on August 19, 2016:

Thanks hub, this article gave me what i want.

Abdel on November 30, 2015:

Its cool man can really feel an element of sustainability in planning ,was expecting it to be very generic

vijithjayapuram on November 04, 2014: is Very useful....

Latoya Duncan on October 07, 2014:

Planning is very essential especially when it deals with our fututre

nankya catherine on January 14, 2014:

thanks,its great

Scroll to Continue

vidhya on September 06, 2013:

It is very useful,thank u so mach

Shoma on June 07, 2013:

It is very useful,thanks

hope on November 17, 2012:

plan is guide line of our every day activities, thank u for this article.this will help us.

rahul on November 10, 2012:

very good i say best

priya on July 29, 2012:

thanx..its very useful..

surbhi on July 18, 2012:

thanx for this article...

richmond Adu-Gyamfi on July 17, 2012:

thank you very much for this article. in fact, it has helped me a lot in my research work.

girlie on July 16, 2012:

i now understood it very well

Younis ahanger on June 27, 2012:


precious on June 27, 2012:

i'm ok with the answers to my research.thanks.

Samuel Osepishi Elisha. on June 05, 2012:

Nice work, as a student of education i really admire this article, because i am planning to succeed!

MDE Consulting on May 25, 2012:

This was a great read is important to everyone that has plans to be successful in any situation. Once you master the art of planning then you have a key component for the recipe of success.

masoud rajabu on May 23, 2012:

planing is verry important to our daily life because you never make any things without plan and if you make it is not real successfully.

Anifowose Grace on May 03, 2012:

Any organization that fails 2 plan, is at the pit of failure, what you failed to plan for today will be a stumbling block for you tomorrow.

peeruu on April 19, 2012:

planning is just a good thing thank for these nice proceedings

Menaka on April 17, 2012:

Thanks a lot....

It was very usefull for my assignment..

vidya on March 26, 2012:

thanks it was very useful for my studies and have learn a lot

Stephen-MKU Thika on March 24, 2012:

Wow! This article has seriously helped me to know more about planning.

Irshad on March 21, 2012:

Planning is necessary for executing the job because the man,material,time,money, will be easier to organise before starting the actual work coz at the neck of the time its difficulty....

Ec77 on March 02, 2012:

Very useful article.

Eze Roy Chy on February 28, 2012:

Planning is essentially important. It is a key to actualizing a set of goals and dreams. Just work your plans and gain your success.

Ogebaby on February 18, 2012:

Wao, These have had to my future. Planning is good.

Takesh Dahal on January 06, 2012:

It's really good to know about planning in Management-principles.

francismalz from Manila, Philippines on December 21, 2011:

Planning is very important.You just demonstrated planning by thinking and working on this hub. Thank you.

Lucas Hunki on December 08, 2011:

Its very nyc. I would use it as my reference

BIRUNGI KULSUM on November 28, 2011:


amelia morris on November 08, 2011:


ABHI on October 28, 2011:

It's a well written article which helps me a lot to do my assignment.THANK U....

roshert on October 24, 2011:

i just love planning it gives you direction and help you to do you business the way u want it and achive your objectives

Baah Gregory on October 07, 2011:

I just like planning.i have read a lot about planning God will bless you all please i want a scholarship or other means to further my education thank you

dui from FL, USA on September 29, 2011:

planning is really important particularly when establishing something then, when it become success, it's like a great accomplishment and you are happy to share the idea with everyone else.

elfiendah from Bogor, Indonesia on September 15, 2011:

great hub! plans are the way to the goals. Set a good plan will set the good paths for success. no matter the changes happen, just stick to the plan and be tough.

opusf15 from Boston, Massachusetts on September 02, 2011:

very comprehensive look at planning! nice job! I really like it...thumbs up! i am a fighter pilot and planning is extremely important if we are to achieve our mission objectives.

Jussy7777777 on September 01, 2011:

Its an interesting piece. Thanks up!

hefseeba on July 13, 2011:

thank u

blogvicar from France on July 04, 2011:

As a book editor I really understand the need for proper planning. I am amazed at how many people try and write a book without some sort of up front planning and organisation. This is invariably an unwise move.

Great hub

zenaida on February 03, 2011:

nice Hub i got many knowledge in addition to masteral and to my work in supervision and management.... keep up the good work...

Dilip Chandra (author) from India on October 03, 2010:

Four steps to achievement are Plan purposefully, Prepare prayerfully, Proceed positively, Pursue persistently. But have you noticed once thing Planning occupied the first position. planning is important all the time. Also it is important to remember that setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.

Thanks for the comment Jack...

Jack Who on October 03, 2010:

Nice Article ... Though I initially thought that it was related to planning & forecasting ... but still fun to read ...

Dilip Chandra (author) from India on September 07, 2010:

i.hadzi.. plan your work and work your plan, This line is cool. Thanks for the comment.

Dilip Chandra (author) from India on September 07, 2010:

lmfoong... Thank you.

Dilip Chandra (author) from India on September 07, 2010:

LeanMan thanks for the comment.

i.hadzi on September 07, 2010:

If you want to have any kind of success in life, then you have to plan your work and work your plan.

I like - I follow

lmfoong from Malaysia on August 11, 2010:

Well written article in planning


Tony from At the Gemba on June 01, 2010:

Nice Hub, what I would say is that many companies fail to review and update plans as situations change as they do frequently with today's economy.

Dilip Chandra (author) from India on May 13, 2010:

Thank u...

James Flynn from Edinburgh on May 11, 2010:

Nice hub, planning is crucial. Rated up and bookmarked.

dreamreachout on May 10, 2010:

Wonderful hub .. Without planning your life and your proffession would go haywire!! It is always a dimension to be planned and organized!!

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