NATURE OF PLANNING

Planning has following nature and characteristics:

(1) Primary Function

Planning is the primary function of management. It precede all other management functions. Without setting the goals to be achieved and line of action to be followed there is no meaning of organizing, leading or controlling the activities of an organization. In fact, all other functions of management largely depend upon planning. It sets all other functions into action. Hence, it is the primary function of management.

(2) Pervasiveness of Planning

Planning is a pervasive activity. Managers at all level of organization perform the planning function. However, nature and scope of planning may differ of various levels of management. Top management looks after strategic planning. The middle and lower management are concerned with administrative planning and operational planning respectively.

(3) Focus on Objectives

A plan must focus on accomplishing certain objectives/goals. It identifies the actions that would lead to the desired objectives quickly and economically. Planning cannot be thought of without objectives.

(4) Future Oriented

Planning is done for the future. It decides in the present what is to be done in future. It is based on forecasting and a plan is a synthesis of forecasts. Thus, planning is forward looking in nature.

(5) Selective Process

In order to achieve a set of objectives, there are a number of alternatives, which are available to an organization. Hence, planning is essentially a process of choosing among alternatives. It is concerned with decision-making relating to (a) what is to be done, (b) how it is to be done, (c) when it is to be done, and (d0 by whom it is to be done.

(6) Intellectual Process

Planning is a mental process, which involves creative thinking and imagination. Managers have to consider various courses of action, go in details the pros and cons of every courses of action and the then finally decide which course of action may suit them best. It is not mere guesswork but involves rational thinking. It requires mental ability to think before acting.

(7) Continuous Process

Planning is a continuous and never ending process of a manager in an organization. Process is a systematic way of doing things. The manager plans on the basis of some assumption, which may not come true in the future. Therefore, he has to go on modifying, revising and adjusting plans in the light of changing environment. A manager cannot plan once for all.

(8) Increases Efficiency

Planning aims to increase the efficiency of the organization at all levels. The guiding principle of a good plan is the maximum output and profit at the minimum cost. In planning, the manager evaluates the alternative on the basis of efficiency. Hence, the concept of efficiency is implicit in planning.