MBA and class notes

Wednesday, 13 February 2013

Planing and Its Importance in Organization.

MBA and class notes 

What is Planning ?

Planning is the process of determining the objective of administrative effort and of devising in the organization. It‘s involves in the creation and maintenance of plan. It is an endeavor to apply foresight to human activities based on research in the organization. Planning is the preparation for action to achieve organization goal.


O’Donnell and Weihrish:  “Planning is an intellectually demanding process; it requires the conscious determination of courses of action and the basing of decisions on purpose, knowledge and considered estimates.”

Urwick:  “Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses”. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.  
Mc Farland:  “Planning may be broadly defined as a concept of executive action that embodies the skills of anticipating, influencing and controlling the nature and direction of Change.”

Allen: “A plan is a trap laid to capture the future.”

G.R. Terry:  “Planning is the selection and relating of facts and making and using of assumptions regarding the future in the visualization and formalization of proposed activities believed necessary to achieve desired results.”

Planning is an Importance Function of Management:

Planning is the most important and primary managerial function in the organization because it determine the facts of the organization for achieving the required objectives. All functions of an organization depend upon it to achieve goal.
  • Planning gives right direction to the organization.
  • Planning increases the efficiency of an organization.
  • It helps to achieve objectives of the organization.
  • It helps management in decision making.
  • Decisions are made by the administration to ascertain activities to find the objectives.
  • Managers determine the goals and prepare strategies to achieve them.
  • Future results are fore sighted.
  • It filled the gap between where we are and where we desire to go.
  • It aids in organizing all available resources.
  • It reduces the risks involved in business activities.
  • It facilitates proper coordination between employees within an organization.
  • It is important to maintain a good managerial control.
  • It motivates the personnel of an organization.
  • It encourages managers' creativity and innovation.

Thus, planning is essential in any organization for effective management. It helps to achieve goals or target by using the available resources and time. It provides a rational approach to pre-selected objective of organization.

Its concepts is to identify what the organization what organization want to do by answering these questions, which are-
  • Where are we today in terms of business?
  • Where we are going?
  • Where we want to go?
  • What to want to do for achieving it?
  • When is the deadline?
  • Where will this be done?
  • Who will be responsible for it?
  • How will it get done?
  • How much time, energy, and resources are required to accomplish this goal?

        Nb: In near future I will be sharing a post on “ Types of Plan ”. 

Notes- this post shared here are base on my study in case you find anything wrong and missing points than please bring it to my notice.

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