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Principles of Planning

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16 views2 pages

Principles of Planning

Uploaded by

a2022jimenez11
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles of Planning1

Updated on October 31, 2014

A good plan today is better than a perfect plan tomorrow.

Important Planning Articles


• PLANNING - Management principles
Planning bridges the gap from where we are to where
we want to go. It makes it possible for things to occur
which would not otherwise happen.

• The Importance of Planning


Importance of Planning Function. Planning is a process
which involves the determination of future course of
action, i.e. why an action, how to take an action, and
when to take action are main subjects of planning...
Management Planning Principles
Planning is a dynamic process, it is very essential for every organization to achieve their ultimate
goals, but, there are certain principles which are essential to be followed so as to formulate a sound
plan. They are only guidelines in the formulation and implementation of plans. These principles of
planning are as follows:

1. Principle of Contribution: The purpose of planning is to ensure the effective and efficient
achievement of corporate objectives, in-fact, and the basic criteria for the formulation of plans
are to achieve the ultimate Objectives of the company. The accomplishment of the objectives
always depends on the soundness of plans and the adequate amount of contribution of
company towards the same.

2. Principle of Sound and Consistent Premising: Premises are the assumptions regarding the
environmental forces like economic and market conditions, social, political, legal and cultural
aspects, competitor’s actions, etc. These are prevalent during the period of the implementation
of plans. Hence, Plans are made on the basis of premises accordingly, and the future of the
company depends on the soundness of plans they make so as to face the state of premises.

3. Principle of Limiting factors: The limiting factors are the lack of motivated employees,
shortage of trained personnel, shortage of capital funds, government policy of price regulation,
etc. The company requires to monitor all these factors and need to tackle the same in an
efficient way so as to make a smooth way for the achievement of its ultimate objectives.

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4. Principle of Commitment: A commitment is required to carry-on the business that is
established. The planning shall has to be in such a way that the product diversification should
encompass the particular period during which entire investment on that product is recovered.

5. Principle of Coordinated Planning: Long and short-range plans should be coordinated with
one another to form an integrated plan, this is possible only when latter are derived from the
former. Implementation of the long-range plan is regarded as contributing to the implementation
of the short-range plan. Functional plans of the company too should contribute to all others
plans i.e. implementation of one plan should contribute to all the other plans, this is possible
only when all plans are consistent with one another and are viewed as parts of an integrated
corporate plan.

6. Principle of Timing: Number of major and minor plans of the organization should be arranged
in a systematic manner. The plans should be arranged in a time hierarchy, initiation and
completion of those plans should be clearly determined.

7. Principle of Efficiency: Cost of planning constitute human, physical and financial resources
for their formulation and implementation as well. Minimizing the cost and achieving the efficient
utilization of resources shall has to be the aim of the plans. Cost of plan formulation and
implementation, in any case, should not exceed the organizations output's monetary value.
Employee satisfaction and development, and social standing of the organization are supposed
to be considered while calculating the cost and benefits of plan.

8. Principle of Flexibility: Plans are supposed to be flexible to favor the organization to cope-up
with the unexpected environments. It is always required to keep in mind that future will be
different in actuality. Hence companies, therefore, require to prepare contingency plans which
may be put into operation in response to the situations.

9. Principle of Navigational Change: Since the environment is always not the same as
predicted, plans should be reviewed periodically. This may require changes in strategies,
objectives, policies and programs of the organization. The management should take all the
necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of
the organization.

10. Principle of Acceptance: Plans should be understood and accepted by the employees, since
the successful implementation of plans requires the willingness and cooperative efforts from
them. Communication also plays a crucial role in gaining the employee understanding and
acceptance of the plans by removing their doubts and misunderstanding about the plans also
their apprehensions and anxieties about consequences of plans for achievement of their
personal goal.

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