Planning is one of the most important components in management because it allows business and organizations to ascertain goals, allocate resources, and ensure that every activity is focused to achieve these goals.
Planning in management essentially refers to something more than decision-making capability-to predict the future, prepare for adversity, and guide an organization towards success.
.jpg "Characteristics of Planning in Management")
In this blog post, we are going to break down the characteristics of planning in management into simple easy-to-understand ideas so that managers at all levels can use them to improve their decision-making processes.
1. Goal Oriented
The first and most fundamental characteristic of planning in management is that it is goal-oriented. Every business plan is created with a specific objective in mind. Without a clear goal, the planning process lacks direction and purpose.
For example, an organization can target, say, increasing its market share by 10% within one year.
Then it will probably go ahead to formulate how this target is to be achieved
For instance, increased marketing activities, launch a few new products or boost customer care. All the choices that are made in planning are accordingly directed by these goals.
In management, goal-oriented refers to a focus on what the organization wants to achieve and create a roadmap from there.
The reason goals are necessary is that it gives directions to employees, and everyone must be towards the same point.
2. Futuristic
Planning in management has always been a future-oriented activity. What a manager has to do is to predict changes in the business environment earlier than it takes place.
This may include predicting what is going to happen in markets, customer preferences, or anything related to technology.
For example, a company manufacturing technology may look ahead in a few years when a new product that would ascertain the needs of consumers at that particular time shall be developed. A head-start and proactive approach towards acting on tomorrow's demands makes the company ready to thrive and become competitive.
Being futuristic also refers to planning for risk and problems that may fall along the way. An effective manager should plan for both good and bad times. They should make such an organization flexible to changes.
3. Continuous Process
Planning is not a one-off event but rather a continuous process. Markets change, technologies change, and new competition emerges into the game.
For this reason, managers have to periodically review and update their plans to make them current.
Continuous planning in management involves being flexible enough to make changes based on the information that is obtained.
For example, in cases where the supply chain is affected or wherein alterations of marketing plans are required due to customer complaints.
By treating planning as dynamic, rather than static, managers would always be moving ahead of problems, ensuring that the organization stays on course.
4. Involves decision making
Management planning, in short, is all about making decisions. These decisions run from developing long-term strategies to executing the best course of action for a given problem. Therefore, it is the quality of decisions that makes the plan a success or failure.
It may be such a decision that the manager needs to take whether to enter into a new market or not.
This decision will be supported by data analysis, weighing the risks against benefits, plus judging the available resources. Once a decision is arrived at, the plan can then be applied.
Correct decision-making may involve proper gathering and analysis of information, discussion with others, and concerning short-term and long-term results. A good planning decision will lead to great success while a bad one may lead to disaster.
Other Useful Articles :
Profit And Loss Accounting: Essential For Business Success
Top 7 Types of Planning in Business Management
Variance Accounting Explained: Key Types and Their Role
5. Flexible
The flexibility of good planning in management should be the driving point. Even with the best prepared of plans, there is still a likelihood that some unpredictable things will occur.
A flexible plan would allow for maneuver and adjustments without falling to pieces.
As an illustration, if the sales of an organization had been below its expectations, then the manager would have to change the sale strategy or invest more resources for marketing.
If such a plan was too rigid, then it would not allow these adjustments, and the company could miss its goals.
In management, flexibility simply means being open to feedback, new ideas, and ready to change when circumstances demand it. A flexible plan is much more likely to succeed because it can adapt to the challenges and opportunities that arise.
6. Information-Based
As it is with management planning, it does not take place in a vacuum. Rather, it is founded upon information and data, thus enabling the manager to make intelligent decisions.
This may be as internal, such as reports of finances, and feedback by employees, or else as external sources, including market research and competitor analysis.
For instance, a company may analyze customers data before the launching of a new product so that it can know which product the customers want.
Therefore, the basis of developing a product for the market will be such data, and the product will probably be a success.
A good manager plans based on the right and up-to-date information available to them. This allows them to minimize risks and make decisions that are really possible as compared to others.
7. Coordination
Often part of effective planning in management is coordinating several departments or teams to the point where they can work together with a common goal.
Coordination ensures all parts of the organization are coordinated and working on similar objectives. There is likely to be confusion, duplication of efforts, or missed opportunities in case coordination is not effective.
Managers have a significant role in coordinating various teams to ensure everyone is on the same page. There is one sure way of ensuring all departments know their roles and responsibilities within the plan-that is clear communication.
8. Involves Prioritization
Management also requires planning, which in this case also includes prioritization. All the tasks and goals involved here are not equal in terms of importance thus managers have to determine which ones should be attacked first. This helps organizations with proper utilization of their resources: time, money, and people.
For example, in picking a priority item for the year, a company might declare that it wants to attain its customer satisfaction objectives. Then, more resources will be spent on enhancing customer service, while less available time and fewer will be allocated to less imperative projects.
It helps prioritize the critical issues so as to address them first, hence efficient and effective utilization of resources.
Poor prioritization will get the organization frustrated with the numerous tasks it cannot complete to meet the most crucial goals and objectives.
Other Useful Articles:
Accounting Information Systems: The Heart of Financial Data
Limitations of Cost Accounting: A Guide for Professionals
9. It ensures Efficiency
One of the essential planning goals in management is the proper utilization of resources. These may mean minimizing waste and maximizing productivity.
A good plan will help managers allocate resources where they are most needed to avoid unnecessary expenses and improve the performance of the organization.
For example, in the manufacturing industry, planning can mean scheduling production processes in a way that eliminates idle time and all machines are used.
This means that the business is able to raise its output in fewer times and save on costs hence money in the bank.
In management, having plans for efficiency remains a stepping stone in the fast-paced business world of today to remain in the competitive trend.
10. Practical
A good management plan should also be realistic.
In other words, the set goals must be more realistic and the whole plan to suit all those factors that the organization cannot overcome such as budget limitation, available resources, and time.
For example, if a small business doubles its revenue goal in six months, without raising its marketing budget or increasing the size of its staff, it may be setting an unrealistic goal for that business. Setting realistic goals prevents frustration and disappointment and ensures that an organization stays on track.
It doesn't mean setting low expectations; it simply is ensuring that the plan is understood in terms of the organization's capabilities and challenges and stretches the company to achieve it while still making sense to do so.
Conclusion
Planning under management is the best tool that can lead an organization toward success.
The main features that managers must consider when designing plans should include being goal-oriented, futuristic, continuous, flexible, and information-based in accuracy.
Whether you have a small team or a great big business, it will help you find your way in the mystifying business planning world.
Don't forget, the best plans are those which sound well thought of, adaptable and keen on the future yet grounded in reality.
0 Comments