Plans are prepared for implementing them in the future. Planning is a time-bound concept and every plan has a defined time horizon. Planning is a process based on forecasts, because, under it, the works to be done in the future are forecasted in advance. Forecasting is a prerequisite for planning- Without forecasting, there cannot be any planning. It is thus clear that planning is helpful in the attainment of objectives. Few Main Nature and Features of Planning in Business! All other managerial functions are performed within the framework of plans drawn. If there is one possible goal or only one possible course of action, there is no need for planning because there is no choice. At the end of the financial year, the actual results are compared with the forecast to evaluate business performance, and a new forecast for the new financial year is prepared. Disclaimer Copyright, Share Your Knowledge Plans of different types of business though different in details exhibit the following common characteristics: 1. Thus, planning proceeds other functions. This is why those managers tend to succeed in planning who have conceptual skills (analytical thinking, vision, foresight, etc.). Planning is an interdependent process. Following are the nature and characteristics of planning in business management: eval(ez_write_tag([[336,280],'googlesir_com-medrectangle-3','ezslot_0',105,'0','0']));Planning is the primary function of business management. Planning is based upon the organisational objectives. Every activity performed by a manager is based on decisions. 2. to prepare an authentic, meaningful and achievable budget. External environment is not constant; the only thing constant about it is—change. If this is not the situation and if manager has only one-way of doing something. Coordination and cooperation – Departmental managers resort to planning at different points of time. This is the prerogative of owners and top-end management. Foundation of Successful Action 11. Planning Involves Making Choice between Alternatives: 6. Planning works in environment which is abstract and not physical. This is why an organization has plans at different levels: overall organizational plan, divisional plan, departmental plan, and sectional plan which constitute hierarchy of plans. Planning is an important function of every manager; he may be a managing director of the organisation or a foreman in a factory. Hence, it is a continuous process. But, the “Course of action” can be determined only on the basis of knowledge of future events. Goals may be implicit or explicit, but well-defined goals are essential for efficient planning. Goal Oriented – Planning is an organisational process which predetermines the goals of the business organisation. The guiding principles of a good plan is the maximum output and profit at the minimum cost. The need for planning arises only when alternatives are available. It is not guesswork or wishful thinking. The next step is determining how the objectives are to be achieved. It precedes all other functions as without planning nothing can be done. Planning focuses on achieving objectives: Companies are set up with a common goal in view. Otherwise, the apprehensions of misunderstandings, confusions, spreading of anarchy maybe remain. ii. 6. – Planning is the most effective means of making a choice beforehand among many alternatives based on the technology of the future and that available currently. If various alternatives are not available for the solution of any problem, planning will not be required. Planning is Directed towards Efficiency: Aim of any manager is to attain organizational goals effectively and efficiently. Hence, it is evident that planning is an intellectual and mental process.eval(ez_write_tag([[300,250],'googlesir_com-box-4','ezslot_10',120,'0','0'])); The main objective of planning is to accomplish the objectives of the enterprise efficiently. Planning is an intellectual process, for which creative thinking and imagination are essential. Importance 10. It precedes all other management functions. Planning is basically a decision-making activity. 4. Planning is flexible – The process of planning should be adaptable to the changes take place in the environment. 1. Involvement of middle and lower-level management in planning activity will give them sense of belonging to the organization and necessary ego-boost; they will work with enthusiasm treating orga­nization objectives as challenges to them to meet. The last step deals with operational details, namely, assignment of tasks and duties, defining author­ity-responsibility relationships between positions and resources, fixing time-frames for accomplish­ment of objectives at each level, and providing coordination and control mechanism to ensure that all activities are objective-directed and deviations from performance standards are quickly addressed. Planning is the conscious, systematic process of making decisions about goals and activities that an organization will pursue in the future. Management, Functions, Planning, Features of Planning. First, planning specifies the objectives which are to be achieved within a specified period. It is thus the first function of management at all levels. Futuristic planning is nothing but forecasting. Planning is Pervasive. The other functions e.g., organising, staffing, directing and controlling come later. For example, the top management undertakes planning for the organisation as a whole. Planning requires application of the mind involving foresight, intelligent imagination and sound judgement. For example – You may plan for your monthly test, your father may plan to set up new business, the CEO of a company may plan to launch a new product, a sales manager may plan to achieve his sales target, a worker may plan his production schedule etc. Planning Involves Decision Making 16. Thus planning can be felt and experienced everywhere but the scope may differ at different levels, different organisations and for different activities. The efficiency of plans 1. Since no person can feel fully assured about the future course of events. Planning is realistic- Planning outlines the results expected and the nature of the results expected. Lower management has to concentrate on operational planning. A constructive reviewing of future needs so that present actions can be adjusted in view of the established goal. Planning provides the foundation for managerial action by specifying the objectives and the ways of achieving them. Planning is Basically, Decision Making. The second plan after the first and third plan after the second, and so on, goes on, irrespective of changes taken place in goals, policies, methods, sources of Enterprises and circumstances, etc. Planning is the basic function and the structure of all other functions depends on it. Privacy Policy3. Flexible 9. Content Guidelines 2. It depends on Intellect of an human being. 7. A plan is a pre-determined course of action. Planning is a selective process – It involves the selection of the best one after making a careful analysis of various alternative courses of action. (a) A plan is prepared for a particular period. 5. At the end of specific time new plans have to be prepared. Foundation of successful action – Planning is the foundation of successful action of an enterprise. It is therefore, clear that all the managers working in an enterprise have to plan their activities. Forward-Looking Process 10. Nature of planning depends on the features of planning which are grouped as follows: 1. Planning allows ample scope for structural and other adjustments based on certain ‘ifs’ and ‘whys’ like contraction or expansion of demand and other a political changes etc. It is needed in all types of organisations, whether big or small, profit or non-profit, social, political or religious. Depending on the situations, old plans are to be revised and new one to be prepared. 1. But, planning and decision making have a difference. eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_1',101,'0','0']));eval(ez_write_tag([[250,250],'googlesir_com-medrectangle-4','ezslot_2',101,'0','1']));Related: 10 Components or Elements of Planning (with Examples). Your email address will not be published. If done one has to face various problems, which are out of control. 4. 6. Planning is a function that is carried out by managers. Characteristic Features of Planning: The planning function of management has some special features. Planning is dynamic- Planned activity does not always follow a planned pattern due to many factors in the environment which affect the plan and which are not in our control. Required fields are marked *. Planning involves anticipating the future course of events. Welcome to EconomicsDiscussion.net! Therefore, planning is the prime mover of an organization. Unity is also the main feature of planning. Its contribution to objectives: planning provides the base of other functions into action, it essential! Programs of an organization will pursue in the future course of action ” can be performed that changes not... Devises ways and means to take risk and, of course, of... Your PDF File Share Your knowledge Share Your PDF File Share Your PDF File Your... 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