Name – Raja Adhikary.

STUDENT ID- 2330930147

ROLL NO - 30942723109
Subject - Principal Of Management
Sub Code - MIM101

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Importance of
Planning in
Achieving
Organizational
Goals
By Raja Adhikary
Introduction
Planning is the most basic of all the managerial functions - the first
Management function to be performed in the process of
management - necessary for discharging all other management
functions . Planning concentrates on setting and achieving the
objectives of an organization. Planning is the determination of courses
of action to achieve the desired results. It governs the survival, growth
and prosperity of any organisation in a competitive and ever-changing
environment. Planning involves the determination of objectives of the
business, formation of programmes and courses of action for their
attainment, development of schedules and timings of action and
assignment of responsibilities for their implementation. Effective
planning facilitates the early achievement of objectives. Planning thus
precedes all efforts and action, as it is the plans and programmes that
determine the kind of decisions and activities required for the
attainment of the desired goals.
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Important Characteristics of Planning
1. Planning is looking into the future.
2. Planning involves pre-determined line of action.
3. Planning discovers the best alternative out of available many alternatives.
4. Planning requires considerable time for implementation.
5. Planning is a continuous process.
6. Planning's object is to achieve pre-determined objectives in a better way.
7. Planning integrates various activities of organization.
8. Planning is done for a specific period.
9. Planning not only selects the objectives but also develops policies, programmes and procedures to
achieve the objectives.
10. Planning is required at all levels of management.
 Types of Planning
Based on Nature of Planning: Based on Duration of Planning:
 Formal Planning: Planning is formal when  Short term Planning: Short term planning is
it is reduced to writing. When the the planning which covers less than two
numbers of actions are large it is good to years. It must be formulated in a manner
have a formal plan since it will help consistent with long term plans. It is
adequate control. The term formal means considered as tactical planning. Short-term 4.Easy to Gauge.
official and recognised. plans are concerned with immediate future; 5.Only little resources required.
it takes into account the available resources
• Advantages: only and is concerned with the current  Long-Term Planning: Long-term planning
1. Proper Cooperation among employees, operations of the business. These may usually converse a period of more than
include plans concerning inventory planning five years, mostly between five and
2. Unity of Action, and control, employee training, work fifteen years. It deals with broader
methods etc. technological and competitive aspects of
3.Economy, the organisation as well as allocation of
• Advantages: resources over a relatively long time
4.Proper coordination and control,
1.It can be easily adjustable. period. Long-term planning is considered
5.Choosing the right objectives, and as strategic planning. Short-term
2. Changes can be made and incorporated. planning covers the period of 1 -2 years,
6.Future plan.
while long term planning covers 5-15
• Disadvantages: years. In between there may be
 Informal Planning: An informal plan is one,
which is not in writing, but it is conceived 1. Very short period - left over things will be medium-term plans. Usually, medium
in the mind of the manager. Informal more. term plans are focusing on between two
planning will be effective when the and five years. These may include plan
number of actions is less and actions have 2. Difficult to mobilize the resources. for purchase of materials, production,
to be taken in short period. 3. Communication cycle may not be labour, overhead expenses and so on.

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 TOP
Strategic
(Long-term planing)
3-5 years

MIDDLE
Tactical Planning
(Middle-term planing)
6 months-3 years

BOTTOM
Operational Plannig
(Short-term planing)
Daily-6 months

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Definitions of Planning by Different Authors:

‘Planning is deciding ‘Planning is, in ‘Planning is an ‘Planning is the

the best alternative to essence, the exercise intellectual decision- selection of
perform different of foresight.’ making process in objectives, policies,
managerial operations which creative procedures, and
for achieving - Hamilton thinking and programmes from
predetermined goals.’ Church imagination are among alternatives.’
essential.’
– Henry Fayol – M.S. Hurley
– Haynes and
Massie
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Advantages of Planning to an Organisation
Facing Complexities of Modern Business: Economy in Operations:
The business is becoming more and more The objectives are determined first and
complex. There is a globalisation of business, then best possible course of action is
competition is increasing, and constant need for selected for achieving these objectives.
creativity and many more issues crop up in day The operations selected, being better
to day working. There is a constant need to plan among possible alternatives, there is an
the things to face complex situations. Planning economy in operations. The method of
helps as a tool in anticipating emerging trial and error is avoided and resources
business situations and suggesting ways to take are not wasted in making choices. The
advantage from it. economy is possible in all departments
whether production, sales, purchases,
finances, etc.

Attention on Objectives: Better Co-Ordination:

Planning helps in clearly laying down The objectives of the organisation being
objectives of the organisation. The whole common, all efforts are made to achieve
attention of management is given towards these objectives by a concerted effort of
the achievement of those objectives. all. The duplication in efforts is avoided.
There can be priorities in objectives, Planning will lead to better co-ordination
important objectives to be taken up first in the organisation which will ultimately
and others to be followed after them. lead to better results.

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Limitations of Planning:
4.Management at Different Levels in
1.Corporate Planning is not Integrated the Organisation has not Properly
into the Total Management System: Contributed to Planning
The top management fails to identify and Activities:Generally all strategic planning
associate properly the formal planning with are made and conducted at top
the central concept of the organisation's management. Sometimes middle level and
mission. lower level of management, which are closer
to the operation, may not understand all
2.Resistance to Change:Most people resist aspects of planning. This will affect their
change due to fear of uncertainty. Planning fullest contribution.
gives a false sense of security to the people
in the organization. 5. There is a Lack of Understanding of
the Different Steps of the Planning
3.Inflexibility:Planning results in rigidity in Process: The management may not be
the internal working of the organization. knowledgeable or skilled in understanding
Managers are required to follow the all steps of the planning requirements.
procedures rigidly. Internal inflexibilities that
may limit planning are related to human 6.Lack of Accurate Information: may pose
psychology, organizational policies and problems in operations.Planning is made by
procedures, and long-term capital having information and data available.
investment. Beside this, managers are Planning involves forecasting and future is
confronted with much external inflexibility, quite uncertain and complex and forecasting
and they do not have control over them. loses its value if information is not accurate.
These factors are social, legal, technological, Sometimes, managers do not know how to
etc. use the information efficiently; in that case
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planning.
Conclusion
In a nutshell, planning is super
important for our organization.
It's like making a smart roadmap
so we all know where we're
going and how to get there.
Without a good plan, it's like
trying to find your way in the
dark things might get messy. So,
let's stick to planning, work
together, and make sure we
reach our goals the right way!

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