Characteristics of Planning Function

Planing is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal.
Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making.

Characteristics of Planning:

1. Planning is goal-oriented.

   1. Planning is made to achieve desired objective of business.
   2. The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected.
   3. Planning identifies the action that would lead to desired goals quickly & economically.
   4. It provides sense of direction to various activities.

2. Planning is looking ahead.

   1. Planning is done for future.
   2. It requires peeping in future, analyzing it and predicting it.
   3. Thus planning is based on forecasting.
   4. A plan is a synthesis of forecast.
   5. It is a mental predisposition for things to happen in future.

3. Planning is an intellectual process.

   1. Planning is a mental exercise involving creative thinking, sound judgement and imagination.
   2. It is not a mere guesswork but a rotational thinking.
   3. A manager can prepare sound plans only if he has sound judgement, foresight and imagination.
   4. Planning is always based on goals, facts and considered estimates.

4. Planning involves choice & decision making.

   1. Planning essentially involves choice among various alternatives.
   2. Therefore, if there is only one possible course of action, there is no need planning because there is no choice.
   3. Thus, decision making is an integral part of planning.
   4. A manager is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of the enterprises.

5. Planning is the primary function of management / Primacy of Planning.

   1. Planning lays foundation for other functions of management.
   2. It serves as a guide for organizing, staffing, directing and controlling.
   3. All the functions of management are performed within the framework of plans laid out.
   4. Therefore planning is the basic or fundamental function of management.

6. Planning is a Continuous Process.

   1. Planning is a never ending function due to the dynamic business environment.
   2. Plans are also prepared for specific period f time and at the end of that period, plans are subjected to revaluation and review in the light of new requirements and changing conditions.
   3. Planning never comes into end till the enterprise exists issues, problems may keep cropping up and they have to be tackled by planning effectively.

7. Planning is all Pervasive.

   1. It is required at all levels of management and in all departments of enterprise.
   2. Of course, the scope of planning may differ from one level to another.
   3. The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same.

8. Planning is designed for efficiency.

   1. Planning leads to accomplishment of objectives at the minimum possible cost.
   2. It avoids wastage of resources and ensures adequate and optimum utilization of resources.
   3. A plan is worthless or useless if it does not value the cost incurred on it.
   4. Therefore planning must lead to saving of time, effort and money.
   5. Planning leads to proper utilization of men, money, materials, methods and machines.

9. Planning is Flexible.

1. Planning is done for the future.
2. Since future is unpredictable, planning must provide enough room to cope with the changes in customer’s demand, competition, govt. policies etc.
3. Under changed circumstances, the original plan of action must be revised and updated to male it more practical.

Importance of Planning

• It helps managers to improve future performance, by establishing objectives and selecting a course of action, for the benefit of the organisation.
• It minimizes risk and uncertainty, by looking ahead into future.
• It facilitates coordination of activities. Thus, reduces overlapping among activities and eliminates unproductive work.
• It states in advance, what should be done in future, so it provides direction for action.
• It uncovers and identifies future opportunities and threats.
• It sets out standards for controlling. It compares actual performance with the standard performance and efforts are made to correct the same.

Planning is present in all types of organisations, households, sectors, economies, etc. We need to plan because future is highly uncertain and no one can predict future with 100% accuracy, as the conditions can change anytime. Hence, planning is the basic requirement of any organization for the survival, growth and success.