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Planning Function of Management

Updated on January 9, 2015
Failing to plan is planning to fail
Failing to plan is planning to fail

Planning in Management

Planning is deciding in advance what to do and how to do.It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning in management is closely connected with creativity and innovation. It involves setting objectives and developing appropriate courses of action to achieve these objectives.

Planning Definition

"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"

- Koontz and O'Donnel.

Importance of Planning

  • Planning provides directions
  • Planning reduces the risks of uncertainty
  • Planning reduces overlapping and wasteful activities
  • Planning promotes innovative ideas
  • Planning facilitates decision making
  • Planning establishes standards for controlling.

    (Read more on the Importance of Planning ...)

Features of planning

  • Planning focuses on achieving objectives
  • Planning is a primary function of management
  • Planning is pervasive
  • Planning is continuous
  • Planning is futuristic
  • Planning involves decision making
  • Planning is a mental exercise

Planning Process

Setting objectives: Objectives may be set for the entire organisation and each department or unit within the organisation.

Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjucture about what might happen in future.

Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them.

Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative.

Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented.

Implement the plan: This is concerned with putting the plan into action.

Follow-up action: Monitoring the plans are equally important to ensure that objectives are achieved.

(Read more on the Principles of Planning ...)

Types of Plans

Objectives: Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations.They serve as a guide for overall business planning.

Strategy: strategy is a comprehensive plan for accomplishing an organisation objectives. This comprehensive plan will include three dimensions,
(a) determining long term objectives,
(b) adopting a particular course of action, and
(c) allocating resources necessary to achieve the objective.

Policy: They are guides to managerial action and decisions in the implementation of strategy.

Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified steps to be followed in particular circumstances.

Method: Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed.

Rule: Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion.

Programme: Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action.

Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument in many organisations.

© 2009 Dilip Chandra


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    • profile image

      Rajesh Debnath 2 years ago

      Sir, Can you explain Why planning is all pervasiveness function of management? Please sir

    • profile image

      matsabisa snazo 2 years ago

      I m stuck !!!jst need help on the functions of planning cycle

    • profile image

      mabel 3 years ago

      This is very simple to understand.U have made my day.thanx

    • profile image

      ata azizi 3 years ago

      Tanx from helping us in planning topic and wish u explain the nature of planning with more details

    • profile image

      Bianca Chad 3 years ago

      This z ril gud.....duin gr8 in my assignments...thnx a lot

    • profile image

      Manoj Tirkey 3 years ago

      Good and Easy way to understand Planning

    • profile image

      vidhya 4 years ago

      i am management student u r very usefully then,why representation manager of company?

    • dilipchandra12 profile image

      Dilip Chandra 4 years ago from India

      Hello Kisandu Yohana, here are some of the potential reasons.

      Manager unable to meet the company strategic goals. In this situation, the manager sometimes takes the responsibility and resigns from his position on his own.

      Generally, every manager is bonded with the company he is working with. But, when a Company could provide hardly any incentive and other benefits, the manager quits finding a better opportunity.

      Personal bias to a particular employee by the senior management also would lead to the submission of resignation by a manager who was deprived of either the incentive or the promotion in his work place despite of his hard work.

      Often changing the rules and regulations also would lead to quitting of the job by a manager. When rules and regulations are often changed by the organization, the manager feels very frustrated bearing a thought in his mind that heavy stress would make him unable to achieve any objectives of the company in the right approach and the desired time.

      Senior authority of the company should respect the cultural and religious traditions of the sub-ordinates. Despite allowing him to participate in his cultural and religious occasions, if he is subjected to heavy work pressure this would lead to voluntary walk out of the manager from the organization to search for a better institute.

      Recession effect and deal broken with the manager. During the recession, every organization tries to cut-down its cost. In this regard, the organization removes some personnel and assigns the entire responsibility of achieving the organizational goals to the existing employees. In this situation when a company tries to cut-down its cost further and lowers the pay of the manager, it would lead to the deal broken. In consequence, the manager steps down from his position and searches for other opportunity.

      Change in the environment also would force the manager to quit his job. When his work place is changed to other city or town or branch also where he doesn't wish to work and would like to continue in the same environment and in this situation if he is insisted to move to the new environment the manager probably might quit his job.

    • Kisandu Yohana profile image

      Kisandu Yohana 4 years ago from Dodoma, Tanzania

      Yah! it's good but can you help me this question? " why most of managers resign?"

    • dilipchandra12 profile image

      Dilip Chandra 4 years ago from India

      Hello monica karakoti, please refer to the following articles:

      All about planning:

      Importance of Planning:

      Principles of Planning:

      Your answer for the question on planning;

      - Introduction about planning in brief,

      - Definition of planning,

      - Features of planning,

      - Importance of planning (In detail, if the question is on Importance of planning / in brief, if the question is on limitations of planning)

      - Limitations of planning (In detail, if the question is on Limitations of planning / in brief, if the question is on Importance of planning)

    • profile image

      monica karakoti 4 years ago

      sir, cud u plz explain , in board xm , hw we have to present our answer, if the ques is xplain importance or limitations or nything of planning? hw we will describe those points!! please reply as much as soon u cn! thanku

    • profile image

      Bazuaye chris ik 5 years ago

      planning is futuristic discuss?

    • profile image

      ulala 5 years ago

      purpose of planning? is it same with the importance?

    • profile image

      ajay 5 years ago

      pls more about features of planning

    • profile image

      Mihir 5 years ago

      thnx a lot fr solving ma problem...!!! :-)

      nw it wud be easy fo me to make ppt on planning...

      once again thnk u..

    • profile image

      mika 5 years ago

      Without plan everything is unorganised

    • profile image

      zung 5 years ago

      do u think making plan is essential for each organization?

      what would b its best answer

    • profile image

      jean 5 years ago

      can you have the "evolution of library management"

      thank you

    • profile image

      namanya eric 5 years ago

      am now ready for my exams on pom

    • profile image

      Njen 5 years ago

      Woa! U're a genius and thanks for the knowledge u share with we all!!! Thank u very much!!

    • profile image

      patrisha( 5 years ago

      You have realy helped me with my assigment..stay blessed and thank you

    • profile image

      Alfred, 5 years ago

      this is wonderful! may clarify why some manager s may fail despite planning.

    • profile image

      cbea stdent 6 years ago

      can we use futuristic planning in present market development? please help!

    • profile image

      Mgmt student 6 years ago

      I hav "Implementation of Plan" as a "Planning FUnction" in my syllabus .... I need help.... if possible please post something about it or give me a LINK if you have any..

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      jhonnalyn 6 years ago

      will you specify what is the aspects of planning and the purpose and mission.

    • profile image

      aisha 6 years ago

      do explain every point with examples!

    • profile image

      amardeep sood 6 years ago

      thanks sir

    • dilipchandra12 profile image

      Dilip Chandra 6 years ago from India

    • profile image

      sanish 6 years ago

      can u explain about features of planning in more detail?

    • profile image

      sanish 6 years ago

      u are so wonderful on ur work. do u have publish any book regarding management course. if u have please provide me some detail so that i can buy and read it.

    • profile image

      preeti 6 years ago


    • profile image

      preeti 6 years ago

      can explan more detail about importance of plnning

    • profile image

      chandrika samanthi ramanayaka 6 years ago

      your notes are so simple , uniform and enthusiastic for further reading. the pictures are too match with texts-



    • profile image

      saqib 6 years ago

      u solve my solutions thank

    • profile image

      swaroop 7 years ago

      your style of explanation is awesome. thanks for sharing, i have understood the above topic with no difficulty.

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      @ arcelie acal

      The main purpose of business activity is the satisfaction of 'socially desirable' needs, i,e, needs that are compatible with long run public welfare. Such need satisfaction will tend to bring about improvements in the quality of private and public life. Corporate planning should thus facilitate the performance of business activities designed to achieve the satisfaction of socially desirable needs.

      The determination of what are socially desirable needs will be based on public consensus, which corporations should periodically assess, and incorporate into their long range plans. A long-range planning procedure, incorporating social welfare considerations should be developed. It is suggested that a planning procedure such as this is essential for the existence of firms in the long run.

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      arcelie acal 7 years ago

      why is it that planning must include sicial responsibility?

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      @ onjolo Robert

      For Principles of Planning, follow the link:

    • profile image

      onjolo Robert 7 years ago

      would you talk about the principles of planning, and their roles?

    • profile image

      planning planning planning 7 years ago

      planning planning planning

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      @ ProjectsConsult Thank you so much for such a very wonderful appreciating comment.

    • ProjectsConsult profile image

      ProjectsConsult 7 years ago from World Wide Web

      This Hub is very well organized. Clearly you did the planning before putting it on HubPages. I never before thought of planning as being "creative and innovative," like that perspective.

    • profile image

      kimwizzy4life 7 years ago

      wow! Great staff! I love it

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      thanks for the comments...

      here is the article on Planning Principles / Principles of Planning, follow the link:

      Article on Importance of Planning, follow the link:

    • profile image

      azaj 7 years ago

      i want more detail about planning of principles

    • profile image

      Rocko 7 years ago make me tie my plan up easily.

    • profile image

      jhone mans 7 years ago

      will u have a terminologies and and cpomplete details

    • profile image

      farewell party 7 years ago

      i need more notes of the topic plannimg

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      kiran 8 years ago

      will u specefy principles of planning?