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Importance of Planning

Updated on November 11, 2013

Importance of Planning


The importance of the planning function should have be clear to you.  We can outline the importance of planning function as follows:

Provides Direction: Planning provides a clear sense of direction to the activities of the organization and to the job behavior of managers and others.  It strengthens their confidence in understanding where the organization is heading and what for,  how best to make the organization move along the chosen path, and when should they take what measures to achieve the goals of the organization.


Provides opportunity to analyze alternative courses of action:
  Another source of importance of planning is that it permits managers to examine and analyze alternative course of action with a better understanding of their likely consequences.  If managers have an enhanced awareness of the possible future effects of alternative courses of action, for making a decision or for taking any action, they will be able to exercise judgment and proceed cautiously to choose the most feasible and favorable course of action.

Reduces uncertainties: Planning forces managers to shake off their inertia and insular outlook; it induces them to look beyond those noses, beyond today and tomorrow, and beyond immediate concerns.  It encourages them to probe and cut through complexities and uncertainties of the environment and to gain control over the elements of change.

Minimizes impulsive and arbitrary decisions:
Planning tends to minimize the incidence of impulsive and arbitrary decisions and ad hoc actions; it obviates exclusive dependence on the mercies of luck and chance elements; it reduces the probability of major errors and failures in managerial actions.  It injects a measure of discipline in managerial thinking and organizational action.  It improves the capability of the organization to assume calculated risks.  It increases the freedom and flexibility of managers withing well-defined limits.

King-pin  function: As stated earlier, planning is a prime managerial function which provides the basis for the other managerial functions.  The organizational structure of task and authority roles is built around organizational plans.  The functions of motivation, supervision, leadership and communication are addressed to implementation of plans and achievement of organizational objectives.  Managerial control is meaningless without managerial planning.  Thus, planning is the king-pin function around which other functions are designed.

Resource Allocation: Planning is means of judicious allocation of strategic and scarce resources of the organization in the best possible manner for achieving strategic goals of the organization.  The strategic resources include funds, highly competent executives, technological talent, good contacts with government, exclusive dealer network and so on.  If the organization enjoys a distinct advantage in possession of such resources, a careful planning is essential to allocate them into those lines which would strengthen the overall competitive position of the organization.

Resource use efficiency:  For an ongoing organization, planning contributes towards a more efficient functioning of the various work units.  There is better utilization of the organization's existing assets, resources and capabilities.  It prompts managers to close gaps, to plug loopholes, to rectify deficiencies, to reduce wastage and leakages of funds, materials, human efforts and skills so as to bring about an overall improvement in resource use efficiency.

Adaptive responses:  Planning tends to improve the ability of the organization to effectively adapt and adjust its activities and directions in response to the changes taking place in the external environment.  An adaptive behavior on the part of the organization is essential for its survival as an independent entity.  For a business organization, for example, adaptive behavior is critical in technology, markets, products and so on.

Anticipative action: While adaptation is a behavior in reaction and response to some changes in the outside world, it is not enough in some situations.  In recognition of this fact, planning stimulates management to act, to take hold initiatives, to anticipate crises and threats and to ward them off, to perceive and seize opportunities ahead of other competitions, and to gain a competitive lead over others.  For the purpose, some enterprises establish environmental scanning mechanism as part of their planning systems.  Thereby such enterprises are able to direct and control change, instead of being directed and controlled by the pervasive external forces of change.

Integration: Planning is an important process to bring about effective integration of the diverse decisions and activities of the managers not only at a point of time but also over a period of time.  It is by reference to the framework provided by planning that managers make major decisions on organizational activities, in an internally consistent manner.

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    • prasetio30 profile image

      prasetio30 7 years ago from malang-indonesia

      we can run our life well without planning. I agree with your hub. Really informative. We should consider about that. nice hub.

    • online scam check profile image

      online scam check 7 years ago from United Kingdom

      Nice hub, if you fail to plan - you plan to fail.

    • youcanwin profile image
      Author

      youcanwin 6 years ago

      Thanks Prasetio30 for your visit and comment

    • profile image

      jo ann b dizon 6 years ago

      i believe the importance of planning in mans'life. Nice hub. Keep it up...

    • profile image

      biutuie 6 years ago

      People ignore planning lack sence of humour.

    • profile image

      wamruu 6 years ago

      This is really good staff

    • profile image

      Murango 6 years ago

      I never plan I never achieve.

    • profile image

      RAJNISH SINGH 6 years ago

      we can allso men done

    • profile image

      Julio 6 years ago

      thanks a lot. it really helped me in my research

    • profile image

      Edwin 6 years ago

      I hope this gonna help me

    • profile image

      harvin M. Javier 6 years ago

      Nice hub... Keep it up...

      For me planning is one of the most important in our daily life....

    • profile image

      saba 6 years ago

      very gud written article..it helped me in m college work!

    • profile image

      keshav bagri 6 years ago

      this helps the class 12 student in their planning chapter ..

    • profile image

      Rabson Yousuf 6 years ago

      Planning is really important. It provides a clear map to follow

    • profile image

      Ahmed 6 years ago

      Life its self you must plan before you live

    • profile image

      Jhazcy05081993 6 years ago

      ahmmm. for me we should make a plan in order to become well-prepared in everything that we do...

    • profile image

      OCLEO 6 years ago

      plan helps me to be guided in all the things I want to do...

    • profile image

      Von Haul Richy 6 years ago

      Everything needs plan. And always a planner is a life's tire.. That stands as a development initiator.

    • profile image

      Richard Peter Haule 6 years ago

      I'm a planner, i study in the Institute of Rural Development Planning which is allocated at Dodoma in Tanzania. May i question u dears, 'can a person live without planning?' for me even if i feel hungry i do plan on what should i eat at that juncture of the moment. And if i want to visit my friends home i also make a plan. MY NICK NAME IS VON HAUL RICHY ILIVE AT TANGA IN TANZANIA.

    • profile image

      Khamis aka DELIMA 5 years ago

      No planning no development

    • profile image

      abhishek 5 years ago

      planning bridges the gap where we stand today & where we want

      to reach

    • profile image

      abhishek 5 years ago

      planning bridges the gap where we stand today & where we want

      to reach

    • profile image

      Nkumbi 5 years ago

      Plan is a source of life,that it help us to do wark per year.

    • profile image

      Richard Peter Haule. 5 years ago

      Thats all about plan, and even if an organization it needs a plan so as to go ahead... No plan no move..

    • profile image

      Koketso DeGeneres 5 years ago

      If you fail to plan,you plan to fail.

    • profile image

      emmanuel 5 years ago

      Thank you hub. I find this subject useful, it helped me in my work.Indeed proper planning is one of the strategy that can assure success in every area of life.Thank you.

    • profile image

      Eric 5 years ago

      What kind of plan i switable to small-scale businesses?i want to hear from you brothers and sisters.i'am in Rwanda

    • profile image

      kumar Bipul 5 years ago

      yupppsssssssssss,this hub is really very helpful in making assingnments.thats a part of my plan to get good internal assessment marks.salute to this hub.

    • profile image

      france28 5 years ago

      perfect

    • profile image

      Enock Gumbo 5 years ago

      This is a very good research.

    • profile image

      vikas kumar 5 years ago

      this is my thinking advance of planning

    • profile image

      Stanley Gichira 5 years ago

      I like it.

    • profile image

      bennie 5 years ago

      superior publication on planning

    • profile image

      Uche Manuel Ophory 5 years ago

      It's really good to plan in lyf!

    • profile image

      mhlengy 5 years ago

      a good piece of knowlegde, keep it up

    • profile image

      Sabila k. Anthony 5 years ago

      Reall good stuff ! Can't get enough of hubs page.kyambogo.

    • profile image

      ABHI 5 years ago

      Success cannot be achieved without planning.Planning helps me a lot to achieve my objective.

      THE ONE WHO PLANS WILL SUCCEED AT LAST.......

    • profile image

      myson 5 years ago

      its a great work dude, hope for those who have got it into their mind, they are now doing plan in their daily life. i got something big too cause i'm studying development

    • profile image

      Dickson Patrick 5 years ago

      Planning makes you what you are today, As you plain it so it will be for you. Planning is the key.

    • profile image

      her sas 5 years ago

      let us try it friends.

    • profile image

      areez 5 years ago

      nice site very good i my very help that u r tellind to the persom about the importantces of god bellsing keep it up

    • profile image

      MINO MALAIKA 5 years ago

      GREAT WORK.

    • profile image

      NDIANY OKELLO 5 years ago

      WHAT A WONDERFUL WORK!

    • profile image

      NDIANY OKELLO 5 years ago

      WHAT A WONDERFUL WORK!

    • profile image

      otoke benson Uganda 5 years ago

      Nice without planning we can not succeed confirm

    • profile image

      Ezewi S. Uchenna 5 years ago

      Thats nice, good planning give a perfect success. Planning helps an organisation to withstand. Hubs thanks a lot.

    • profile image

      querence ann 5 years ago

      this is a great work for research, people dont plan to fail, they fail to plan.

    • profile image

      Ajit 5 years ago

      It was very helpful to inform about information of planning.thanks....

    • profile image

      binta ali 5 years ago

      hope it wil help me .

    • profile image

      Babalola Raphael 4 years ago

      planning is the first and perhaps the most important function of management,everybody plan no matter at what level. Rosco as my nick name from Nigeria.

    • profile image

      naveed ch 4 years ago

      valuiable data

    • profile image

      Obi Stanley (NSUK) 4 years ago

      A successful business is a PLANNED business. Obi Stanley, Business Administration, Nasarawa State University Keffi, Nigeria.

    • profile image

      Austine 4 years ago

      This is great I got helped

    • profile image

      ankit 4 years ago

      i m lovin it thnx

    • profile image

      Abubakar musa ahmed nsuk 4 years ago

      A good business entity must have a planning decision to execute d development of an organization

    • profile image

      Augustine Newman 4 years ago

      Every successful person will always have a plan.

      Cheers!! for the good work, its very helpful.

    • profile image

      abhay 4 years ago

      planning is intellectual process which concerned with deciding in audience what when why how & who shall do the work................

    • profile image

      sheron 4 years ago

      It is very imp to knw about planning bcoz due to planning organisational goal can be achieved . It is an imp part of management .

    • profile image

      StAngello 4 years ago

      I am preparing for my Management exams and One question that I came accross was the why do managers need to plan. And I must say thank you cause this gave me more than I expected.

    • profile image

      amos esther (amest) from nigeria.amosesther18@yahoo.com 4 years ago

      planning determines what to do and how to do it.without planning the entire organisation will lack sense of direction, all activities in different unit will be uncordinated such that a state of confusion will emerge

    • profile image

      Sean Farchik 4 years ago

      Pretty good work...!

    • profile image

      adeg dolly 4 years ago

      One has to plan to arrive at once focus, with good planning u will get there

    • profile image

      Abdullahi adamu muhammad 4 years ago

      This is a very good significance aspect of study that ,individuals stated and achives their goals or objectives in their lives.dat is good work.may god help us.

    • profile image

      Muhammad Gul 4 years ago

      planning is the best way for using of resource of an organization it gives long life to our organization

    • profile image

      Sulaimon idris alao 4 years ago

      4 someone to enter al-jannah(paradise) & also to enter hell fire it all base on a vital statement called PLANNING.sotherefore,planning assist every creation of allah 2 attain a specific aims either positive or negative.without planning human is like a motor without brake

    • profile image

      roHAn m!tTAl 4 years ago

      This site is very useful because every knowledge about anything get from this site

    • profile image

      Kanika 4 years ago

      Planning is deciding in advance What is to be done ? Almost all managers are plan whether they are at the top , middle or bottom of organisation . Under planning we determine 1.What is to we done and Why? 2. When and Why whom the work is done? 3. How the work is to be done ? Planning is a mental process which means" first think and then do ".

    • profile image

      lubisi lg 4 years ago

      planning refreshes our imagination abt unnessesary things

    • profile image

      Oroma George from Lamwo -Uganda 4 years ago

      Planning reduces stress and poverty

    • profile image

      priya jain 4 years ago

      no planning no future

    • profile image

      soujanya 4 years ago

      this is really a very good explanation on planing

    • profile image

      Alimamy Monrovia 4 years ago

      I live in Sierra Leone; Personally i consider planning to be synonymous to living a life as without planning one is already dead

    • profile image

      Shanta 4 years ago

      good stuff

    • profile image

      Jeseph Mukasa Tanzania 4 years ago

      Are people planning to fail or failing to plan. As a whole planning is the fundamental process for every indivdual/organization/institution whenever want to do anything.

    • profile image

      john simon 3 years ago

      planning is the alternatve way to be developed and be prosper

    • profile image

      Reshma khanal 3 years ago

      Planning is the best way to achive organiasonal sucess in our life. Without planning their is no future.planning help us to go in very smooth and safe way.

    • profile image

      renz paligar 2 years ago

      yea ...you all rigth.....am a college student and alike AND proud to plan ......to become succesfull.......am in philliphines.......

    • profile image

      Shreya 2 years ago

      It's Very Very great information for students. Thanks for your help.

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