Why planning is neccesary

Planning is selecting and relating the facts and making & using of assumptions regarding the future in the realization and formulation of proposed activities believed necessary to achieve the desired results.

Nature of planning:

1) Planning is selective process.
It involves the selection of the best one and it is concerned with the decision making process

2) Planning is an intellectual process.
It involves mental exercise, fore-seeing future development, making forecast and determination of best course of action.

3) Focus on objectives.
A plan starts with the setting of objectives & then makes efforts to reach them by developing strategies, policies, procedures etc.

4) Planning is pervasive.
Planning is pervasive activity covering all the levels of enterprise
Top management is concerned with strategically planning, middle management with the administrative planning and lower management with the operational planning.

5) Planning is directed towards efficiency.
The main purpose of planning is to increase the efficiency of the enterprise.
The guiding principle of a good plan is the maximum output and profit at minimum cost.

6) Planning is flexible.
The process of planning should be adaptable to the changes takes place in the environment.

7) Planning is decision making process.
Decision making is an integral part of the planning. It will occur at many points in the process of planning.

8) Planning is a continuous process.

9) Planning is an integrated process.
Planning involves not only the determination of objectives but also the formulation of policies, procedures, programmes and strategies etc.

Essentials of Good Plan:

1) It should be based on clearly defined objectives.
2) It must be simple.
3) It should be rational and appropriate.
4) It should be comprehensive.
5) It should be provided for proper analysis and classification of actions.
6) It must be flexible.
7) It must be balanced.
8) It must use all available resources and opportunities.
9) It should be free from social and psychological biases of the planners as well as the subordinates.
10) There should be proper co-ordination among the short term and long term plans

Advantages of planning:

1) Planning offsets future uncertainty and change.
A business firm has to work in uncertain and ever changing environment. Planning helps the manager covering out the future course of action. This brings a higher degree of certainty and order into organization.

2) It tackles increasing complexity in modern business.
To run a modern business, there is need for large number of people with different specialization and complex machines. It becomes necessary to depend on planning to get clear idea of what is to be done, when it is to be done, where it is to be done and how it is to be done?

3) It helps in co-ordination.
Planning helps the management in co-ordination process through its objectives, policies, programmes, procedures etc.

4) It helps in proper utilization of company's resources.
As the planning involves deciding in advance of what is to be done, when, where and by whom it is to be done etc. there is a possibility for the proper utilization of company's resources to achieve the company's objective at the cheapest and the best manner.

5) Focuses attention on the organization's goals.
Planning helps the manager to focus attention on the organization's goals and activities. This makes it easier to apply and co-ordinate the resources of the organization more effectively.

6) It improves the compatible strength, adaptability.

7) It guides the decision making.

8) It secures economy in operation.

Why planning is neccesary

Nature of planning:

Essentials of Good Plan:

Advantages of planning:

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