Planning as a managerial function involves deciding on the aims and objectives, deciding the time frame in which they need to be accomplished, and to a certain extent predicting the path which will need to be followed in order to accomplish these aims. So planning often involves looking ahead and gauging future conditions with the help of the present trends and patterns. The concept of planning has certain characteristics.

Characteristics of the concept of planning

  1. Goal-oriented: It is during planning that the goals and objectives of an activity or business are decided. Most managers spend some time chalking out a plan that includes the direction and the path in that direction that needs to be taken. This means that it is during planning that a course of action or the method of achieving the aims are finalised. This helps in bringing clarity to other aspects of the venture.
  2. Continuous process: Plans are made for specific periods of time, say for a month, year or a few years. When the time period is over new plans are drawn up. This is done keeping in mind the experience of the previous time period and how effectively or otherwise the past plan delta with the resources and the problems.
  3. Keep the future in mind: In a lot of ways planning is a way to prepare for the future. It lays down a course of action that has to be carried out in the future. This means analysing current trends and trying to predict what the coming conditions are going to be like. This is done so that the company can face the challenges of the future effectively.
  4. Decision making: The concept of planning includes decision-like limitations of planning and increase making about the way a company can achieve its goals. Managers are required to plan the methods and processes that will lead to the desired profits or objectives. This means deciding the course of action that the company will follow.
  5. Intellectual process: A lot of planning takes place in the mind. The process requires one to think, imagine, forecast, and analyse. All these activities require the application of intellectual faculties.
  6. Pervasive: All the parts of a firm function according to the plan put in place. The outcomes of the operations are because of the way the operations are planned. So planning is an all-pervasive function of management.
  7. Managerial function: The concept of planning is the most fundamental concept of all managerial functions. All the other functions are chosen according to the plans that are made at the beginning of any managerial activity or the inception of a business.

Importance of planning

Planning is a very important part of any firm’s work. It helps in a number of ways and is essential to keeping the firm insulated against sudden contingencies. Following are reasons for the importance of planning:

  • Brings clarity to the aims and objectives: Planning identifies and marks the aims and objectives of the enterprise. This helps in directing focus and effort towards them
  • Smoothens the process of decision making: Since the aims and objectives are decided, decision making is easier. The management and the workers are able to decide and choose the options that will take them towards achieving the objectives of the firm.
  • Promotes efficiency: When a firm and its employees are able to take timely and appropriate decisions it leads to optimum utilisation of resources and the overall economy. This is a great benefit for any enterprise.
  • Enhances creativity and brings innovation: Since planning is an exercise of the mind and involves analysing and projecting it promotes creative ways of thinking.

Conclusion

Planning is an important part of any enterprise. It helps in taking an idea from the stage of inception to execution. It is essential in starting any complex undertaking. Good planning must begin with the development of a clear idea of the objectives that need to be achieved. This should be followed by the determination of the best course of action that will utilise resources in the most productive manner.