Nature Of Planning Essay

Unit 4: Functions of Management

4.1 INTRODUCTION

No matter how big or small the organization is; planning is the core step to keep the organization running. Even, in our day-to-day life, one can notice, how planning prepares us for upcoming as well as unforeseen events. In an organization, a team of managers works at different levels to keep the organization running without much struggle.

Planning is a technique of thinking prior to achieve certain target by organising and managing the activities accordingly. It comprises of the creation and maintenance of a plan like psychological aspects, which needs conceptual skills. There are certain tests to measure one’s planning capability since planning is a vital attribute of an intelligent behaviour.

Planning has a distinct method, which is important for many occupations like management and business. The plans vary according to the fields, which help in company’s efficiency and effectiveness. Planning and forecasting never goes hand in hand. Forecasting on one hand means predicting the future, whereas on the other hand, planning implies what the future should look like depending upon various scenarios.

4.2 OBJECTIVES

In this unit, we have covered the topic of planning in relation with functional management. The unit will throw light on the following topics:

• Definitions of Planning

• Nature of Planning

• Significance of Planning

• Types of Plans

• Steps in the Planning Process

• Prerequisites for Effective Planning

• Advantages of Planning

• Limitations of Planning

4.3 DEFINITION OF PLANNING

The term

Planning is a lengthy process and the implementation of the planis often delayed. And it is not recommendable when the organization has to make quick decision or need to take fast action. Planning is not recommendable to small firms due to its time consuming and costly process. Certain business needs quick decision and proptaction, for such business, long term proves of planning may prove a wastage of