Importance of Planning & Why is planning important in Business and Life
What is Planning
Planning refers to the process of thinking about activities and tasks that are required to be achieved in the future and includes the time frame of when these takes will be accomplished. In simple words, planning involves creating and maintaining a plan, such that the gap between where we are standing today and where we want to reach, such as emotional aspects that necessitate conceptual skills.
Planning involves having goals and finding out earlier the perfect direction of action to acquire these targets. We can also define making plans as putting in objectives and objectives and formulating an action plan to acquire them.
Another important element of planning is time. Plans are continually evolved for a hard and fast time period as no organization can pass on planning with no end in sight.
Keeping in thoughts the time period, we can outline making plans as “Setting objectives for a given time period, formulating various guides of movement to acquire them after choosing the best viable opportunity from the specific guides of movements.”
Features, Nature & Characteristic of Planning:
1. Planning contributes to Objectives:
Planning begins with the dedication of goals. We can’t think of making plans in the absence of an objective. After putting in the objectives, making plans comes to deciding the strategies, processes, and steps to fulfill set objectives. Planners also help and convey adjustments in the plan if matters aren’t moving within the direction of goals.
2. Planning is Primary feature of control:
Planning is the number one or first feature to be achieved by each manager. The manager can execute no different function without appearing a planning feature because objectives are set up in making plans, and different capabilities rely upon the targets.
Similarly, in staffing, the employees are appointed. The number and kind of employees again depend on the objectives of the business enterprise. So making plans always proceeds and remains at no. 1 as compared to other things.
Planning is needed at all levels of the control. It isn’t a function confined to top managers. Most effective, however, planning is finished via managers at every level. Formation of the main plan and structure of typical rules is the challenge of top managers, whereas departmental managers form plans for their respective departments. And decrease level managers make plans to support the overall objectives and to hold on each day sports.
4. Planning is futuristic/Forward searching:
Planning constantly approaches looking beforehand, or planning is a futuristic feature. Planning is never accomplished in the past. All the managers try to make predictions and assumptions for the future. These predictions are made based on past reviews of the supervisor and the ordinary and smart scanning of the overall surroundings.
5. Planning is continuous:
Planning is a never-ending or non-stop system due to the fact after making plans. Also, one has to contact adjustments in converting surroundings and selecting one great way.
So, after planning, planners make changes in the plans consistent with the organization’s requirements.
6. Planning entails decision making:
Making plans is characterized by having options to choose from. That brings the element of decision-making so that the best option is chosen for better results and opportunity. We can not imagine making plans in the absence of preference due to the fact in the planning function, managers evaluate numerous options and choose the most suitable. But if there’s one alternative available, then there’s no requirement of making plans.
7. Planning is a mental exercise:
It is a mental exercise. Planning is an intellectual technique that requires higher wondering. This is why it is a break away from operational sports. In planning, the assumptions and predictions concerning the future are made by means of scanning the environment properly.
This pastime requires a higher stage of intelligence. Secondly, in planning, numerous options are evaluated, and the most suitable is chosen, which once more requires a better stage of intelligence. So, it’s miles right to call planning a highbrow
Why is planning important?
Planning makes optimal use of all available resources. This helps reduce wastage of valuable resources, and their duplication is avoided. Its goal is to deliver the highest return at the lowest possible cost. It thus increases overall efficiency.
Minimizes business-related risks:
Any modern business involves many risks. Planning helps forecast business-related risks. It also helps to take the necessary precautions to avoid these risks and prepare for future uncertainties. Thus, it reduces business risks.
Planning helps to build proper coordination:
In the short-term, medium-term, and long-term plans of an organization are also coordinated with each other. Such proper coordination is possible only due to efficient planning.
Helps in organizing:
Organizing means bringing all available resources together; that is, 6 Ms. organizing is not possible without planning. This is because planning tells us the number of resources required and when they are needed. This means planning aids in organizing efficiently.
Gives correct direction:
It means giving proper information, accurate instructions, and useful guidance to the subordinates. It is impossible without a plan. This is because planning tells us what to do, how to do and when to do it. Therefore, planning helps in giving the right direction.
Maintains good control:
With control, an employee’s actual performance is compared with plans, and deviations (if any) are found to be corrected and corrected.
Helps in achieving objectives:
Every organization has some objectives or goals. It takes hard work to accomplish these goals. Planning helps an organization achieve these objectives, but with some ease and speed. Planning helps an organization avoid some random (coincidental) activities.
Planning helps to give financial or non-financial incentives to managers and employees. These incentives motivate them to work hard and achieve the objectives of the organization. Thus, planning through various incentives helps motivate the personnel of an organization.
Helps Decision Making:
A manager makes many different plans. The manager then selects or selects the best of all available strategies. Choosing or choosing something means making a decision. Therefore, planning facilitates decision-making.
Planning helps in proper allocation of resources:
Planning helps allocate limited resources such as staff, materials, and time in a limited and systematic manner in a wide variety of activities. In the absence of planning, the likelihood of many resources becoming over-inflated increases, while other resources become inactive, resulting in wastage of organizational resources.
Framework for decision making:
Planning provides a framework for decision-making. In the performance of various activities, managers often have to make decisions. Such decisions are straightforward to make and are less likely to make errors when supported by a good plan already done.
Thus, a well-developed plan created in the past guides a manager in making appropriate decisions in case of unexpected problems encountered during the implementation of certain tasks. Planning helps decision-makers by providing guidelines and goals for future decisions.
Planning can help ensure that a coherent set of actions is implemented that is consistent with the decision maker’s values and priorities.
Importance of Planning: For Managers
Planning is the vital function of control. Before managers can prepare, direct, or control, they need to set a route of motion for the organization. Koontz and O’Donnell observe, “Unless a manager has a few planning responsibilities, it’s far dubious that he is surely a supervisor.”
They additionally write, “Without planning, business turns into random in nature, and selections come to be meaningless adhoc options.” Terry has rightly said that “Planning is the foundation of most successful moves of any organization.” Robert Fulmer has very aptly remarked. “Failing to plot approach planning to fail.”
Planning is valuable to managers due to the subsequent motives:
Importance of Planning # 1. Basis of Success:
Planning is the foundation of the successful operations of any company. Bernard Law Montgomery sums up that “Successful planning-i.e., a clear definition of goals, the willpower of techniques to transport toward them and an evaluation of progress—is the keynote of success in an employer.”
Importance of Planning # 2. Keystone Management Function:
Planning is, without a doubt, the keystone management function because all other functions are required to perform the choices of making plans. The planning function distinguishes ‘managers’ from ‘non-managers.
Importance of Planning #3. To Manage by way of Objectives:
Planning is a philosophy of coping with the support of objectives. All activities of an organization and its individuals are designed to attain a SMART target. Planning makes these dreams realizable, actionable, and more concrete by giving direction to managers and workers’ efforts. David Holt says: “Planning presents objectives and articulates those targets for each person in the business enterprise.”
Importance of Planning # 4. To Offset Growing Complexity of Business:
The increase in the price of technological communication and developing the enterprise environment’s complexity have substantially complicated the supervisor’s task. With planning, managers can anticipate future occasions and develop plans of motion for use if and when they occur.
Importance of Planning # 5. Better Utilization of Resources:
Planning is necessary for the powerful and proper utilization of organizational sources. It identifies physical, financial, and human resources and initiates their higher use.
Importance of Planning # 6. To Gain Economy in Operation:
Planning minimizes organization cost because of the emphasis on lean operation and consistency. It includes selecting the most earnings capable direction of motion that could result in the best result at the minimum costs.
Importance of Planning # 7. Establishes Coordinated Effort:
Planning coordinates the activities of the organization closer to defined and agreed-upon goals. A lack of making plans can foster “zigzagging” and, as a result, save you a company from moving successfully in the direction of its objectives.
Importance of Planning # eight. Facilitates Control:
There is no other way to govern without plans. Planning establishes targets or standards that facilitate control. Planning states what is to be accomplished, and management structures are developed to assess how plans are progressing.