Notes on Importance And Limitations Of Planning In Management Function:

      As a base for other management function, literally planning is a process of making a sketch of various goals and objectives of the entity and the ways and means for to be accomplishng it.

       The process of planning may not be the same for all types of organisation. However, planning in business enterprise usually involves the following steps:

1. Defining the Real problem:

       Every organisation must identify and define the problem, which may arise in course of time and call for planning.

2. Establishing clear cut objectives:

       The Manager should clearly establish the goals, In the absence of this step, the energies of the people may be wasted and they may be working in opposite directions.

3. Collection of Facts and Data:

       All relevant informations and data relating to the planning problem from internal and external sources is to be collected and analysed.

4. Establishing planning premises:

       In order to develop Coordinated planning, it is necessary that the planning is based upon carefully considered assumption and prediction about future. A business enterprise has to predict the sales, prices, wages; considering the changes in tastes, fashion, taxes to pay etc.

5. Identifying alternative course of Action:

       The Manager has to search for and examine alternative courses of action. Has also to consider their probable consequences.

6. Budgeting:

       The Manager has to estimate the men Money, materials and equipments in numerical terms required for the implementation of plans and programmes. So planning without budgeting leads to utopian concept and has no chance of success.

7. Times and Sequence of Operation:

       Planning determined the starting and finishing time for each piece of work according to some definite schedule and give concrete shape to work performance. So planning cannot leave aside this aspect.

8. Innovation:

       Innovation consists of creating something new for consumer satisfactory. It is the very life of business and is very necessary for sustaining growth in this dynamic world. It is also and important strategy of Successful business.

Importance Of Planning:

       The importance of planning lies in its many told advantages, which may be stated as follows:

  1. It identifies the objectives of the organisation and helps Management chalk out policies, procedures and programme schedule of the organisation.
  2. It predicts the future market condition. This eliminates the uncertainties and reduces the risks and liabilities to a great extent.
  3. Planning ensures economy as it prevents wastage of men, money, materials, methods etc by choosing the best course of actions from many alternatives.
  4. By spelling out the aims of the firm, it makes the workers aware of their goals and makes them efficient in their works. Their Coordinated efforts help to achieve the ultimate goals of the enterprise.
  5. Planning give necessary competitive strength for continuous growth and steady progress by forecasting competitors Strategies and actions.
  6. Planning defines the boundaries within which the business should operate. This helps him to avoid beating around the bush and enables him to concentrate on vital and relevant business studies.
  7. Planning establishes the organisational structure and staffing procedures, This ensures smooth organisational activities and fixes the starting time and finishing time for time for each piece of work.
Limitations Of Planning:
  1. Sometimes planning is not based on accurate facts and data. This ultimately losses its significance in actual operation.
  2. Planning is often done by untrained personnel. This often creates errors in the plan and thus brings the business to failure and may even cost its very survival.
  3. Plans are often made rigid. This creates problems in bringing changes in the organisational structures and programme in the light of the changed situations.
  4. It is difficult to plan for industries, which are subject to rapid changes like fashionable articles, wart, are industries etc.
  5. Planning sometimes proves expensive and time consuming. It involves much energy and time in mobilization of different kind of resources.