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Principles of Planning

Updated on October 31, 2014
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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    • sameerk profile image

      sameerk 6 years ago from India

      very well written, keep it up

    • dilipchandra12 profile image
      Author

      Dilip Chandra 6 years ago from India

      sameerk - Thanks for the comment...

    • profile image

      Phillip 5 years ago

      keep it up

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      preeti 5 years ago

      good

    • profile image

      alen 5 years ago

      Good keep it up

    • profile image

      ASFER AHMED 5 years ago

      good

    • profile image

      NEERAJ PANDEY 5 years ago

      goog yr......very nice

    • profile image

      Khalid 5 years ago

      re great information very useful

    • profile image

      Ifeanyi 5 years ago

      Nice one....

    • profile image

      stany 5 years ago

      nice work...keep it up!

    • profile image

      Peter kiplimo 5 years ago

      Wel understood

    • profile image

      sena from Sri lanka 4 years ago

      Thanks and I appreciate u. Well explained.Simple

    • profile image

      raj 4 years ago

      best !!

    • profile image

      anita saru 4 years ago

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

    • profile image

      ankit 4 years ago

      toooo goood

    • profile image

      Mark 4 years ago

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

    • profile image

      oge 2 years ago

      thanks for your knowledge, I appreciate.

    • profile image

      lelit 2 years ago

      I just like this! keep it up.

    • profile image

      devika bisht 24 months ago

      interesting notes

    • profile image

      Fredrick Odindo 20 months ago

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

    • profile image

      alice 18 months ago

      thanks it has really helped me alot

    • profile image

      OKOTH DOMNIC,MUT,HRM 6 months ago

      very optimistic notes to be read,thanx

    • profile image

      vindicated Gh 4 months ago

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

      BRAVO

    • profile image

      suraj 4 months ago

      Thank you

    • profile image

      Pankaj Chaudhari 3 months ago

      Nice information ....

      It is helpful for me

      Thanks for providing this information ...

    • profile image

      KEMUNTO 2 months ago

      very useful thanks for providing this information

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