State any three points of importance of planning function of management.

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(i) Provides directions: Planning provides directions by deciding the goals and objectives to be achieved and how such goals to be achieved what action should be taken.

(ii) Reduces overlapping and wasteful activities: Planning reduces overlapping and wasteful activities by coordinating the activities of different. As the top management are aware of the desired goals and policies and plans they coordinate their efforts and work to achieve that goal without any delays and waste. 

(iii) Pervasive: Planning must be done at all levels of the management and in all departments of the organisation. Planning is required at all departmental levels and stage in an organisation.

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Types of plans :

i. Objective:  An objective is a specified goal that an organisation needs to achieve and where, when and how it should be performed and the expected outcome of it and to be achieved. Top level management need to state these objectives very clearly for each and every department in the organisation so that right direction can be taken for achieving goals. Objectives are the main points of planning function. 

ii. Budget: A budget is a financial statement of expected results expressed in numerical terms. It is a plan which drafts the desired results and quantifies future facts and data in numbers. For instance, a budget on sales, the number of products and their prices will give the desired quantifiable revenue earned data. This representation in quantifiable figures makes it easier to compare the actual results with the expected results, and thereby take corrective actions.

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Planning is deciding in advance what is to be done. Its important features include:
(i) Planning focuses on achieving objectives: Planning involves certain steps like determination of objectives, and development of policies, programs and procedures to achieve the objectives of organisation.

(ii) Planning is a primary function of management: Planning lays down the base for other functions of management. All other managerial functions are performed within the framework of the plans drawn. Thus, planning precedes other functions. This is also referred to as the primacy of planning.

(iii) Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department.

(iv) Planning is continuous: Plans are prepared for a specific period of time, may be for a month, a quarter, or a year. At the end of that period there is need for a new plan to be
drawn on the basis of new requirements and future conditions. Hence, planning is a continuous process.

(v) Planning is futuristic: Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best advantage of an organisation. Thus it is futuristic in nature.

 

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Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms
Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken.

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Planning is deciding in advance what is to be done. Its important features include:
i) Planning focuses on achieving objectives: Planning involves certain steps like determination of objectives and development of policies, programs and procedures to achieve the objectives of organisation.
ii) Planning is a primary function of management: Planning lays down the base for other functions of management. All other managerial functions are performed within the framework of the plans drawn. Thus, planning precedes other functions. This is also referred to as the primacy of planning.
iii) Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department.
iv) Planning is continuous: Plans are prepared for a specific period of time, maybe for a month, a quarter, or a year. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions. Hence, planning is a continuous process.