Definition & Nature Of Planning

Meaning, Definition & Nature

Planning is the first and foremost function of management. It is an intellectual process of thinking resorted to decided a course of action which helps achieve the pre-determined objectives of the organization in future. It is also the fundamental function of management and all other function like organizing, staffing, directing and controlling must reflects planning function of management. It is most important for higher level but this function is performed by every manager at their respective jobs. While planning the manager projects a course of action for the future aimed at achieving desired results for the enterprise as a whole and each department with in it.

          It deals with future involves forecasting. A manager does not plan about the past but he is guided by the post performance in the process of planning it requires projecting future activities at the organization. So, we can say that planning is forecasting and deciding in advance a course of action to be followed in the future.

          According to Terry, “ Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieved desired results.”

          H. Fayol says, “ Planning is deciding the best alternatives among others to perform different managerial operations in order to achieve the pre-determined goals.”

          The Essential nature or characteristics of  planning can be highlighted by the following points.

1.     Primary of Planning – The functions of management include planning, organizing, staffing, directing and controlling. It is most basic management function. As a matter of fact all other function of management largely depends upon planning. For example control cannot exit without planning. Organization is also setup with a plan & objectives in mind. Planning is therefore the primary function of Management.

2.     An intellectual activity – Planning involves choosing the proper course of action from among alternatives & calls for decision-making which is an intellectual process. Change in environment bring opportunities, and involved risk as well. It is the task of planner to take advantage of opportunities and minimize the risk.

3.     A continuous function – Management is a dynamic process and planning as its function cannot be an exception to it. More over as plans beget a number of sub-plans and since plans have to be revised in the light of changing environment, planning becomes a continuous function of Management.

4.     Planning is flexible – As already pointed out, while planning, any one of the available alternatives is selected. Planning selects the best alternatives based on certain assumptions. There is a possibility of dead log in the functions of the management. Planning has one more alternative to suit future situations.

5. For all managerial functions – Planning is a pervasive function of management. It is found at all levels and all departments of an organization. Top management looks after strategic planning. It involves choosing the future course of action from among alternatives.