Features of Planning

Planning is not a random or haphazard activity. Every organisation, whether a small shop or a large company like Polaris, follows a set pattern when it plans. The features of planning explain what planning really is — its nature and its scope. These features are the fundamental truths about planning that you will see reflected in real business situations.

(i) Planning focuses on achieving objectives

Every organisation is created with a general purpose. Planning translates that purpose into specific, concrete goals. A plan lays out exactly what goals must be achieved and what activities will be undertaken to reach them. Without a clear objective, planning has no meaning. It is a purposeful activity — its entire value lies in contributing to the achievement of predetermined organisational goals. In the Polaris example, the company's objective was to increase capacity by 1500–2000 professionals within six months. The plan was built entirely around that target.

(ii) Planning is a primary function of management

This is often called the primacy of planning. Planning provides the foundation for every other managerial function — organising, staffing, directing, and controlling. All other functions are performed within the framework set by the plans. For instance, you cannot decide how many people to hire (staffing) or what tasks to assign (organising) unless you first know what the plan is. Planning, therefore, comes first. However, this does not mean planning is more important than other functions — all functions are interrelated and equally important. But planning is the starting point, the base on which everything else is built.

(iii) Planning is pervasive

Planning is required at every level of management and in every department of the organisation. It is not a job reserved only for top management or for a particular department like marketing or finance. The scope of planning, however, differs at different levels:

• Top management undertakes planning for the entire organisation — strategic, long-term plans.
• Middle management does departmental planning — for example, the production department head plans for the production targets.
• Lower-level management (supervisors) do day-to-day operational planning — scheduling work for a shift or a week.

So, while planning is everywhere, the nature and time horizon of the plan changes as you move down the hierarchy.

(iv) Planning is continuous

Plans are made for a specific period — a month, a quarter, or a year. Once that period ends, the plan is no longer valid. A new plan must be drawn up based on the new requirements and the changed future conditions. This creates a planning cycle: a plan is framed, it is implemented, and then it is followed by another plan, and so on. Planning never stops; it is an ongoing, repetitive process.

(v) Planning is futuristic

Planning is essentially about looking ahead. Its purpose is to prepare the organisation for future events so that it can meet them effectively and to its best advantage. This involves peeping into the future, analysing what might happen, and predicting it. Planning is therefore a forward-looking function that relies on forecasting. For example, a business firm uses sales forecasting — predicting how much it will sell next year — as the basis for preparing its annual production and sales plan. Without forecasting, planning would be blind.

(vi) Planning involves decision making …