Principles of Planning

A good plan today is better than a perfect plan tomorrow.
A good plan today is better than a perfect plan tomorrow.

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.

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Comments 26 comments

sameerk profile image

sameerk 6 years ago from India

very well written, keep it up

dilipchandra12 profile image

dilipchandra12 6 years ago from India Author

sameerk - Thanks for the comment...

Phillip 5 years ago

keep it up

preeti 5 years ago


alen 5 years ago

Good keep it up

ASFER AHMED 5 years ago


NEERAJ PANDEY 5 years ago

goog yr......very nice

Khalid 5 years ago

re great information very useful

Ifeanyi 5 years ago

Nice one....

stany 5 years ago

nice work...keep it up!

Peter kiplimo 4 years ago

Wel understood

sena from Sri lanka 4 years ago

Thanks and I appreciate u. Well explained.Simple

raj 4 years ago

best !!

anita saru 4 years ago

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

ankit 4 years ago

toooo goood

Mark 4 years ago

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

oge 2 years ago

thanks for your knowledge, I appreciate.

lelit 24 months ago

I just like this! keep it up.

devika bisht 22 months ago

interesting notes

Fredrick Odindo 19 months ago

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

alice 16 months ago

thanks it has really helped me alot


very optimistic notes to be read,thanx

vindicated Gh 3 months ago

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


suraj 2 months ago

Thank you

Pankaj Chaudhari 8 weeks ago

Nice information ....

It is helpful for me

Thanks for providing this information ...

KEMUNTO 3 weeks ago

very useful thanks for providing this information

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