Planning is a crucial function of management that involves formulating a future course of action for accomplishing a specific purpose. It enables managers to decide what task to do, how to do the task, when to do the task and by whom the task has to be done. Planning lays a foundation for establishing a mission statement, defining organizational goals and determining resources needed to achieve organizational goals .
The process of planning involves setting organizational objectives, examining the business environment, assessing available alternatives and selecting the most appropriate alternative, formulating secondary plans, ensuring cooperation and participation, and following up .
Planning is a continuous process that is closely related to controlling. It is the primary function of management that assists decision making, remains as a continuous process, gives direction, tackles uncertainty, minimizes duplication and wasteful activities, supports and promotes innovative ideas, facilitates decision making, sets standards for controlling function, and facilitates coordination .
The characteristics of planning include being a continuous process, intellectual process, futuristic approach, flexible process, primary function of management, assists decision making, goal-oriented approach, and pervasive .
There are four types of plans: strategic plans, tactical plans, operational plans, and contingency plans. Strategic plans are long-term plans that define the organization’s overall direction and goals. Tactical plans are short-term plans that help implement the strategic plans. Operational plans are detailed plans that outline specific actions needed to achieve the tactical plans. Contingency plans are backup plans that help organizations deal with unexpected situations .
Planning has several limitations, including being time-consuming, expensive, having a gap between targets and results, resistance towards change, paperwork, reason of frustration, and problem of over-target .
In conclusion, planning is an essential function of management that helps organizations achieve their goals. It involves formulating a future course of action, setting organizational objectives, examining the business environment, assessing available alternatives, and selecting the most appropriate alternative. Planning is a continuous process that is closely related to controlling and has several characteristics, types, and limitations .