ADVANTAGES AND

FACTORS AFFECTING
PLANNING
REPORTER: CLEO MAE LIM
MPA 303 – STRATEGICAL PLANNING
 PLANNING

• PLANNING IS ONE OF THE CRUCIAL FUNCTIONS OF

MANAGEMENT. IT IS BASIC TO ALL OTHER FUNCTIONS
OF MANAGEMENT. THERE WILL NOT BE A PROPER
ORGANIZATION AND DIRECTION WITHOUT PROPER
PLANNING. IT STATES THE GOALS AND MEANS OF
ACHIEVING THEM.
ADVANTAGES OF PLANNING
 A. PLANNING IMPROVES COMPETITIVE
EDGE
• - PLANNING PROVIDES COMPETITIVE EDGE TO THE ENTERPRISE
OVER THE OTHERS WHICH DO NOT HAVE EFFECTIVE PLANNING.

• B. PLANNING HELPS IN
COORDINATION
• - PROPER PLANNING IS MADE BY UNIFYING ALL AREAS ON DEPARTMENTS OF
THE ORGANIZATION.
 C. PLANNING HELPS IN ACHIEVING
ECONOMIES
• - EFFECTIVE PLANNING SECURES ECONOMY SINCE IT LEADS TO ORDERLY
ALLOCATION OF RESOURCES TO VARIOUS OPERATIONS.

• D. PLANNING ALLOWS MANAGEMENT

EXCEPTION
• - THE MEANING OF MANAGEMENT BY EXCEPTION IS THAT THE MANAGEMENT OF THE
ORGANIZATION IS NOT REQUIRED TO BE INVOLVED IN ALL THE ACTIVITIES.

• E. PLANNING FACILITATES CONTROLLING

• - PLANNING PROVIDES PERFORMANCE STANDARDS AND STANDARDS FOR
MEASURING THE PROGRESS OF THE ORGANIZATION.
 F. PLANNING MINIMIZES
UNCERTAINTIES

• - PLANNING HELPS IN REDUCING UNCERTAINTIES OF FUTURE AS IT INVOLVES

ANTICIPATION OF FUTURE EVENTS.

• G. PLANNING FACILITATES
MANAGEMENT BY OBJECTIVES
• - PLANNING HELPS IN FOCUSING THE ATTENTION OF EMPLOYEES ON THE
OBJECTIVES OR GOALS OF ENTERPRISE.
FACTORS AFFECTING PLANNING
 A. TIME FACTOR

• - IN PLANNING, THE EXECUTIVE FACES A SPAN OF TIME WITHIN WHICH TO

CARRY OUT THE PLANS INTO EXECUTION.

• B. RESOURCES AVAILABLE
• - THE BEST OF PLANS WOULD BE UNPRODUCTIVE OF GOOD RESULTS IN THE
ABSENCE OF AVAILABLE RESOURCES THAT THE BUSINESS ENTERPRISE
NEEDS FOR ITS CONTINUOUS OPERATION.
 C. SKILLS AND ATTITUDE
MANAGEMENT

• - ONE OF THE COMMON CAUSES BEHIND THE FAILURE OF PLANNING AS A

PROCESS AND MOREOVER, AS A FUNCTION OF MANAGEMENT IS THE
ABSENCE OF TOTAL INVOLVEMENT ON THE PART OF ALL LEVELS IN THE
PLANNING PROCESS.

• D. PHYSICAL FACILTIES
• - MODERN PRODUCTION IS ANCHORED ON THE BETTER USE OF EXISTING
PLANTS AND EQUIPMENT THROUGH IMPROVED SCIENCE AND TECHNOLOGY.
E. COLLECTION AND ANALYSIS OF DATA
• - ANOTHER IMPORTANT FACTOR IN THE PLANNING PROCESS IS INFORMATION.
PLANNING DEPENDS FOR ITS EFFECTIVENESS ON THE QUALITY AND QUANTITY
OF DATA INVOLVED IN THE PLANNING PROCESS.

• F. ECONOMY
• - THE OVERALL ECONOMY OR HEALTH OF THE COMPANY’S INDUSTRY ALSO MAY
NEGATIVELY AFFECT A MANAGER’S ABILITY TO PLAN.

• G. RAPIDLY CHANGING ENVIRONMENT

• - WHEN THE OVERALL ECONOMY OR AN INDUSTRY IS FACING CONFLICT,
PLANNING IS MORE DIFFICULT.