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The Importance of Planning

Updated on October 29, 2014

Planning Importance in Management

Planning is a process which involves the determination of future course of action, i.e. why an action, how to take an action, and when to take action are main subjects of planning. Check under the Importance of planning in the words of McFarland.

"Planning may be broadly defined as a concept of executive action that embodies the skill of anticipating, influencing, and controlling the nature and direction of change".

- McFarland

Plan your work & work your plan

Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of the future.
Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of the future.

Importance of Planning

  1. Planning increases the organization's ability to adapt to future eventualities: The future is generally uncertain and things are likely to change with the passage of time. The uncertainty is augmented with an increase in the time dimension. With such a rise in uncertainty there is generally a corresponding increase in the alternative courses of action from which a selection must be made. The planning activity provides a systematic approach to the consideration of such future uncertainties and eventualities and the planning of activities in terms of what is likely to happen.
  2. Planning helps crystallize objectives: The first step in planning is to fix objectives which will give direction to the activities to be performed. This step focuses attention on the iesults desired. A proper definition and integration of overall and departmental objectives would result in more co-ordinated inter-departmental activities and a greater chance of attaining the overall objectives.
  3. Planning ensures a relatedness among decisions: A crystallization of objectives as mentioned above would lead to a relatedness among the decisions which would otherwise have been random. Decisions of the managers are related to each other and ultimately towards the goals or objectives of the enterprise. Creativity and innovation of individuals is thus harnessed towards a more effective management of the company.
  4. Planning helps the company to remain more competitive in its industry: Planning may suggest the addition of a new line of products, changes in the methods of operation, a better identification of customer needs and segmentation and timely expansion of plant capacity all of which render the company better fitted to meet the inroads of competition.
  5. Adequate planning reduces unnecessary pressures of immediacy: If activities are not properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and avoids unnecessary pressures.
  6. Planning reduces mistakes and oversights: Although mistakes cannot be entirely obviated, they can certainly be reduced through proper planning.
  7. Planning ensures a more productive use of the organization's resources: By avoiding wasted effort in terms of men, money and machinery, adequate planning results in greater productivity through a better utilization of the resources available to the organization.
  8. Planning makes control easier: The crystallization of objectives and goals simplify and highlight the controls required.
  9. Planning enables the identification of future problems and makes it possible to provide for such contingencies.
  10. Planning can help the organization secure a better position or standing: Adequate planning would stimulate improvements in terms of the opportunities available.
  11. Planning enables the organization to progress in the manner considered most suitable by its management: Management, for example, may be interested in stability and moderate profits rather than huge profits and risk of instability. In terms of its objectives, the plan would ensure the actions are taken to achieve such objectives.
  12. Planning increases the effectiveness of a manager: As his goals are made clearer, adequate planning would help the manager in deciding upon the most appropriate act.

Is planning a waste of time in relation to unpredictable future?

Planning in organization is the process of creating and maintaining a plan. It is a process of thinking about the activities required to accomplish a desired task or reaching the organisational goal. Choosing a destination, evaluating alternative routes, and deciding the specific course of the plan, in short, are the major steps involved in the process of planning.

Future is always unpredictable, market trend is always dynamic. Only through a proper and flexible planning future uncertainties can be tackled efficiently. Hence planning is never a waste of time in relation to unpredictable future. In fact planning is more essential to deal with the future unforeseeable trends.


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    • profile image

      Nkem 19 months ago

      Thanks hub, this article gave me what i want.

    • profile image

      Abdel 2 years ago

      Its cool man can really feel an element of sustainability in planning ,was expecting it to be very generic

    • profile image

      vijithjayapuram 3 years ago is Very useful....

    • profile image

      Latoya Duncan 3 years ago

      Planning is very essential especially when it deals with our fututre

    • profile image

      nankya catherine 4 years ago

      thanks,its great

    • profile image

      vidhya 4 years ago

      It is very useful,thank u so mach

    • profile image

      Shoma 4 years ago

      It is very useful,thanks

    • profile image

      hope 5 years ago

      plan is guide line of our every day activities, thank u for this article.this will help us.

    • profile image

      rahul 5 years ago

      very good i say best

    • profile image

      priya 5 years ago

      thanx..its very useful..

    • profile image

      surbhi 5 years ago

      thanx for this article...

    • profile image

      richmond Adu-Gyamfi 5 years ago

      thank you very much for this article. in fact, it has helped me a lot in my research work.

    • profile image

      girlie 5 years ago

      i now understood it very well

    • profile image

      Younis ahanger 5 years ago


    • profile image

      precious 5 years ago

      i'm ok with the answers to my research.thanks.

    • profile image

      Samuel Osepishi Elisha. 5 years ago

      Nice work, as a student of education i really admire this article, because i am planning to succeed!

    • profile image

      MDE Consulting 5 years ago

      This was a great read is important to everyone that has plans to be successful in any situation. Once you master the art of planning then you have a key component for the recipe of success.

    • profile image

      masoud rajabu 5 years ago

      planing is verry important to our daily life because you never make any things without plan and if you make it is not real successfully.

    • profile image

      Anifowose Grace 5 years ago

      Any organization that fails 2 plan, is at the pit of failure, what you failed to plan for today will be a stumbling block for you tomorrow.

    • profile image

      peeruu 5 years ago

      planning is just a good thing thank for these nice proceedings

    • profile image

      Menaka 5 years ago

      Thanks a lot....

      It was very usefull for my assignment..

    • profile image

      vidya 5 years ago

      thanks it was very useful for my studies and have learn a lot

    • profile image

      Stephen-MKU Thika 5 years ago

      Wow! This article has seriously helped me to know more about planning.

    • profile image

      Irshad 5 years ago

      Planning is necessary for executing the job because the man,material,time,money, will be easier to organise before starting the actual work coz at the neck of the time its difficulty....

    • profile image

      Ec77 6 years ago

      Very useful article.

    • profile image

      Eze Roy Chy 6 years ago

      Planning is essentially important. It is a key to actualizing a set of goals and dreams. Just work your plans and gain your success.

    • profile image

      Ogebaby 6 years ago

      Wao, These have had to my future. Planning is good.

    • profile image

      Takesh Dahal 6 years ago

      It's really good to know about planning in Management-principles.

    • francismalz profile image

      francismalz 6 years ago from Manila, Philippines

      Planning is very important.You just demonstrated planning by thinking and working on this hub. Thank you.

    • profile image

      Lucas Hunki 6 years ago

      Its very nyc. I would use it as my reference

    • profile image

      BIRUNGI KULSUM 6 years ago


    • profile image

      amelia morris 6 years ago


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      ABHI 6 years ago

      It's a well written article which helps me a lot to do my assignment.THANK U....

    • profile image

      roshert 6 years ago

      i just love planning it gives you direction and help you to do you business the way u want it and achive your objectives

    • profile image

      Baah Gregory 6 years ago

      I just like planning.i have read a lot about planning God will bless you all please i want a scholarship or other means to further my education thank you

    • dui profile image

      dui 6 years ago from FL, USA

      planning is really important particularly when establishing something then, when it become success, it's like a great accomplishment and you are happy to share the idea with everyone else.

    • elfiendah profile image

      elfiendah 6 years ago from Bogor, Indonesia

      great hub! plans are the way to the goals. Set a good plan will set the good paths for success. no matter the changes happen, just stick to the plan and be tough.

    • opusf15 profile image

      opusf15 6 years ago from Boston, Massachusetts

      very comprehensive look at planning! nice job! I really like it...thumbs up! i am a fighter pilot and planning is extremely important if we are to achieve our mission objectives.

    • profile image

      Jussy7777777 6 years ago

      Its an interesting piece. Thanks up!

    • profile image

      hefseeba 6 years ago

      thank u

    • blogvicar profile image

      blogvicar 6 years ago from France

      As a book editor I really understand the need for proper planning. I am amazed at how many people try and write a book without some sort of up front planning and organisation. This is invariably an unwise move.

      Great hub

    • profile image

      zenaida 7 years ago

      nice Hub i got many knowledge in addition to masteral and to my work in supervision and management.... keep up the good work...

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      Four steps to achievement are Plan purposefully, Prepare prayerfully, Proceed positively, Pursue persistently. But have you noticed once thing Planning occupied the first position. planning is important all the time. Also it is important to remember that setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.

      Thanks for the comment Jack...

    • profile image

      Jack Who 7 years ago

      Nice Article ... Though I initially thought that it was related to planning & forecasting ... but still fun to read ...

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      i.hadzi.. plan your work and work your plan, This line is cool. Thanks for the comment.

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      lmfoong... Thank you.

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      LeanMan thanks for the comment.

    • i.hadzi profile image

      i.hadzi 7 years ago

      If you want to have any kind of success in life, then you have to plan your work and work your plan.

      I like - I follow

    • lmfoong profile image

      lmfoong 7 years ago from Malaysia

      Well written article in planning


    • LeanMan profile image

      Tony 7 years ago from At the Gemba

      Nice Hub, what I would say is that many companies fail to review and update plans as situations change as they do frequently with today's economy.

    • dilipchandra12 profile image

      Dilip Chandra 7 years ago from India

      Thank u...

    • MakeMoneyGoal profile image

      James Flynn 7 years ago from Edinburgh

      Nice hub, planning is crucial. Rated up and bookmarked.

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      dreamreachout 7 years ago

      Wonderful hub .. Without planning your life and your proffession would go haywire!! It is always a dimension to be planned and organized!!