1. Planning is goal-oriented.
- Planning is made to achieve desired objective of business.
- The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected.
- Planning identifies the action that would lead to desired goals quickly & economically.
- It provides sense of direction to various activities. E.g. Maruti Udhyog is trying to capture once again Indian Car Market by launching diesel models.
2. Planning is looking ahead.
- Planning is done for future.
- It requires peeping in future, analyzing it and predicting it.
- Thus planning is based on forecasting.
- A plan is a synthesis of forecast.
It is a mental predisposition for things to happen in future.
3. Planning is an intellectual process.
- Planning is a mental exercise involving creative thinking, sound judgement and imagination.
- It is not a mere guesswork but a rotational thinking.
- A manager can prepare sound plans only if he has sound judgement, foresight and imagination.
- Planning is always based on goals, facts and considered estimates.
4. Planning involves choice & decision making.
- Planning essentially involves choice among various alternatives.
- Therefore, if there is only one possible course of action, there is no need planning because there is no choice.
- Thus, decision making is an integral part of planning.
- A manager is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of the enterprises.
5. Planning is the primary function of management / Primacy of Planning.
- Planning lays foundation for other functions of management.
- It serves as a guide for organizing, staffing, directing and controlling.
- All the functions of management are performed within the framework of plans laid out.
- Therefore planning is the basic or fundamental function of management.
6. Planning is a Continuous Process.
- Planning is a never ending function due to the dynamic business environment.
- Plans are also prepared for specific period f time and at the end of that period, plans are subjected to revaluation and review in the light of new requirements and changing conditions.
- Planning never comes into end till the enterprise exists issues, problems may keep cropping up and they have to be tackled by planning effectively.
7. Planning is all Pervasive.
- It is required at all levels of management and in all departments of enterprise.
- Of course, the scope of planning may differ from one level to another.
- The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same.
8. Planning is designed for efficiency.
- Planning leads to accompishment of objectives at the minimum possible cost.
- It avoids wastage of resources and ensures adequate and optimum utilization of resources.
- A plan is worthless or useless if it does not value the cost incurred on it.
- Therefore planning must lead to saving of time, effort and money.
- Planning leads to proper utilization of men, money, materials, methods and machines.
9. Planning is Flexible.
- Planning is done for the future.
- Since future is unpredictable, planning must provide enough room to cope with the changes in customer’s demand, competition, govt. policies etc.
- Under changed circumstances, the original plan of action must be revised and updated to male it more practical.