Purpose of planning

Planning is one of the managerial functions and this function is very important since it is a process where managers create organization goals and strategic methods for the achievement of goals. Managers play a fundamental role in creating organization missions and objectives by applying retrospective and prospective thinking (Sinofsky & Lansiti, 2010).  First, planning is important as it enables organization reduce uncertainties, minimize risk and achieve organizational success. Managers foresee the future and plans on how to address certainty and uncertainties. Second, planning is done to achieve objectives by combining interdepartmental activities. Third, planning is done to achieve economic operation- by ensuring effective operations, planning minimized costs and maximizes productivity. Last, planning is done to facilitate control- with planning, managers are able to control subordinates and motivate them in accomplishment of goals (Sinofsky & Lansiti, 2010).

 The nature of planning

 The nature of planning involves contribution to objectives-this means that plans are aligned with goals accomplishment and members are expected to show willingness and co-operation.  In other words, objectives can achieve through actions. Second, the nature of planning involves primacy of planning- this means that planning covers all the other managerial functions and it is relied by other functions to establish objectives. To achieve objectives in other managerial functions, plan must come first to provide the right direction (Bryson, 2011). Third is pervasiveness of planning-all managers in the organization hierarchy should participate in planning since different ideas will be incorporated to develop an effective planning. Fourth is efficiency of plans- in considering the efficiency, manager focus on consequences of plan or in other words its capability to achieve objectives. For example, plan may achieves objects though at a high costs. Thus, reasonable costs which will favor production and maximize satisfaction are expected. This means that effectiveness and efficiency are required and managers focus on minimizing the risk (Bryson, 2011).

 

 

 

 

Reference

Sinofsky, S., & Iansiti, M. (2010). One strategy: Organization, planning, and decision making. Hoboken, N.J: Wiley.

 

Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening

and sustaining organizational achievement. John Wiley & Sons,