Planning And Its Importance In Management

Ekta Halwasia, Guest faculty,Commerce Department, Vaish College,

Bhiwani, Email- ravi3585@rediffmail.com

Abstract: Planning is the foundation function of the management. Planning is managerial function where
managers are required to establish goals and state the ways and means by which these goals are to be
attained. It is needed at every level of management. All the business activities of the organization will become
meaning less in the absence of planning. In view of increasing size of the organization the importance of
planning is increased all the more. Furthermore the day by day complexities and constantly changing
business environment of the organization has also increased the importance of planning. Infact planning
helps to guess uncertain events of future.
Key words: Managerial Function. Complexities, Uncertain Events of Future
Introduction: Planning is the most important function of management. The other functions of management
start with it. In fact planning decides the objective of the management. It also decides the method of achieving
those objectives. Planning is deciding in advance what is to be done. So planning is deciding in advance what
to do how to do it and when to do it and who is to do it. Planning is a process whereby managers select goals,
choose action to attain these goals, allocate responsibility for implementing action to specific individual or
units, measure the success of action by comparing actual results against the goals, and revise plans
accordingly.
Planning is done at all level of management. As a matter of fact planning is collecting the facts about present
and future and estimating the possible changes. Planning is a deliberate and conscious work by means of
which managers determine a future course of action for attaining a specific goal. Planning is an intellectual
process in which creative thinking and imagination are very essential. Under planning future is anticipated
and proper decision are taken on that basis. So forecasting is the essence of planning.
The process of planning begins with the establishment of the organization and it ends with the organization.
Plans are changed according to the changing circumstances. So planning is successful only when it recognizes
changes and prefaces new plans according to changed circumstances. So it is very important that in order to
make planning successful internal as well as external changes should be incorporated according to the need of
circumstances and situation. As soon as one plan is finished the other one starts, so planning is an ongoing
process. It is also important to note that planning is the method of selecting best available alternative.
Planning enables an organization to cope with uncertainty and change. Planning seeks to minimize risk while
taking the advantages of all the opportunities. Planning also selects the best possible course of action. It stops
misuse of resources and eliminates all type of waste. It also helps in finding new and better opportunities.
Planning process finds the organizational strength and weakness.
Object of the study:
 To know the importance of the planning in the business organization
 To understand the drawback of planning and to overcome these drawback and uncertainties
Source of data: Primary as well Secondary data are collected for this research paper. Primary data are
collected at random from different people. Secondary data are collected from news papers, magazine, journal,
books, internet etc.
However there are some limitation and difficulties of planning which must be considered while planning
 Planning is always based on the forecast of the future events which are uncertain and constantly
changing. So the first and foremost difficulty in the way of success of planning is the uncertainty
about the future. Moreover some people believe that future is uncertain and we cannot change it.
They also believe that planning is misuse of time and money. This criticism is not at all true. Those
who know correct value and meaning of planning cannot say like this, however one thing must be
kept in mind that cost of planning should not exceed its benefits.
  In the event of sudden emergencies immediate decision are to be taken and this can never be planned.
As the element of flexibility is always included in the planning so this criticisms cannot stand.
 Under planning every individual performs his work in a manner as laid down in the plans. Thus their
initiative is handicapped. Planning strangulates the initiatives of the employees and compels them
work in an inflexible manner. Planning is not everybody’s business.
 One major problem of the process of planning is resistance to change. Changes are always introduced
in the plans according to the need of situation but the managers are not ready to accept the new
responsibilities.
 Planning creates a false sense of security it is wrong belief that planning solves the entire problem.
Planning holds out a false promise of security.
 Sometimes quick and immediate decisions have to be taken to face some urgent situation when there
happen to be some sudden profitable situation. The process of planning cannot be completed
otherwise there is every possibility that opportunity of profit may slip out of hands. Planning can be
effective by eliminating the obstacles coming in its way.
There are certain measures to overcome to difficulties of planning:
 Planning should be clear, definite and easily understandable by each and every one in the
organization to get them easily executed. It is very important that there should not be any scope for
misinterpretation. Therefore, as per as possible planning should be in written form
 Planning should be widely communicated to all persons concerned as well as it should be widely
participated also. The participation of middle level management and lower management can make it
more effective.
 Planning is not everybody’s business. For successful completion of planning advice of experts has to
be sought. In the absence of expert opinion, the success of planning is always doubtful. The opinion
and help of the experts in planning should be sought as only experts can choose the best alternative
course of work performance.
 As planning is long term process factors like policies of government, political changes, competition,
and change on customer taste should also be considered while formulating planning.
 While forming policies the resources and environment of the enterprises must be considered
carefully.
 Policies must be reviewed and revised from time to time to keep them updated and according to
changed circumstances.
 The process of planning does not come to an end simply by implementation of plan. As a matter of
fact planning is a continuous process. Plans are always formulated on the basis of future which is
uncertain and cannot be predicated therefore plans should be changed and modified whenever
necessity arises.

Conclusion: The planning process can be successful only when the top manager after consultation with
employees committed themselves to major strategic changes to lower costs and enhances services.
Moreover the process of planning does not come to an end simply by implementation of plan. As a matter
of fact of planning is continuous process. Plans are formulated on the basis of future which is always
uncertain. Some estimates of future may prove true while others ay be wrong. It is therefore important
that plans must be reviewed from time to time, so as to modify and change them whenever necessary.