Management Functions
Managers are required to undertake different activities in order to run an organization. In order to facilitate working similar activities are classified under different heads knowns as management functions. Every business undertaking has to perform functions such as planning, organizing, staffing, directing, coordinating, and controlling. These functions have to be performed irrespective of the size and nature of an undertaking. Even in non-business organizations, managerial functions are the same. Various functions are interrelated and are taken up simultaneously. It is not that one function is taken up first and the other one Later. An organization will run only when all the functions are performed to achieve the common goals. The success or failure of an undertaking will be influenced by the methods of taking up managerial functions.
What is Planning?
What is the meaning of planning?
Every organization, bigger or small, needs some type of planning. In order to run a business properly, there will be a need to decide what is to be done, how it will be done, who will do it, and when this will be done. Thinking for the future is essential for making a business successful. Planning is the prerequisite for starting any type of activity.
Planning is a basic managerial function. It helps in determining the course of action to be followed for achieving various organizational objectives. Planning is a process that involves thinking before doing. It is concerned with the mental state of the manager.
Planning involves setting objectives and deciding in advance, the course of action to be taken to achieve those objectives. Another important factor to be associated with planning is time. Plans are always developed for a specific period of time, Achieving planned objectives in a given period is essential for the success of a business. Other functions of management like organizing, staffing, controlling, and directing are also undertaken after proper planning.
Features or Characteristics of Planning
The following points will explain the features or nature of planning :
1. Planning is a Mental Exercise.
Planning requires a mental exercise for assessing the current business situation and expected future environment for taking appropriate decisions. Planning also requires the evaluation of various alternatives before selecting a particular course of action. All these decisions require a higher level of intelligence, that is why planning is called an intellectual process.
2. Primacy of Planning.
Planning is the first function of a planner. Other functions like organizing, staffing, directing, controlling, etc. are followed by planning. Without planning no other function can be performed. How can a manager set up an organization without having a plan in mind? How can he appoint and direct staff without deciding the objectives? It can ve said that planning is the function that needs to be done first of all. Planning decides the objectives of the business and other functions are carried out in such a way that these objectives are achieved. The other functions will be carried on after planning is done.
3. Planning is a continuous process.
The process of planning does not end with the preparation of a plan. The plans have been adjusted or readjusted as per the situation and changing environment. A plan will not be implemented effectively if it is not adjusted as per the requirements for changing times.
For example, a plan may be made when there was a recession in the market after some time the demand for products goes up then the plan will have to be changed as for the new situation in the market.
4. Planning is Forward-Looking.
Planning is a futuristic function. One has to look for the future while planning. The past performance and future possibilities become the basis for planning. A manager tries to make assumptions and predictions and also scan the possibilities in the future and base his plans on these factors. So planning is done for the future and is based on past experiences and future possibilities.
5. Planning involves decision-making.
A planner has to select the most suitable then there is no decision-making except to accept that alternative. For every decision to be taken there are different possibilities and a decision is made after evaluating various alternatives. While planning a manager has to choose the best course of action out of the many possibilities available to him.
6. Pervasive.
A question is often asked as to who should plan. As per the definition of management every manager plans at whatever level of the hierarchy he may be. A chairman of the Board of Directors plans at the top level, a functional manager at the departmental level, a foreman plans at the plant level. All these persons are managers at their level of organization. The degree, importance, and magnitude of planning depends on the level at which it is performed. Planning at the top level will be fundamental, broad, far-reaching, and basic. The chief executive will see to it that persons at other levels of management do not plan beyond their purview. The scope and extent of planning tend to decrease as it goes to lower levels of management. All managers plan in the organization irrespective of their rank in the hierarchy.
7. Focus on Objectives.
An organization employs a number of persons. Each one of them has a different personality and attitude. There will be a difference of opinion about the objective of the enterprise and the methods of achieving them. Planning focuses attention on setting up organizational objectives and suggests ways to achieve them. The objectives influence the future course of every business. If the objectives are not properly set then the efforts spent on them will go waste. The main purpose of planning is to focus the attention on setting up appropriate objectives.
Importance/Significance of Planning
Planning is the first step in management. The increasing complexities of business are making plans more important for tackling them.
Planning is important for the following reasons :
1. Planning Provides Direction.
Planning provides direction to everybody in the organization. It determines what is to be done when is to be done, how is to be done, and who'd do what. This type of planning determines the activities to be taken up by different persons and the way these are to be done. In the absence of planning, everybody will be doing things in his own way and this will create confusion and objectives of the have to do then they will straightway focus on their work and there will be a unity of direction and desired goals will be reached as per plans.
2. Reduces Risk of Uncertainties.
A business may face uncertainties and changing situations every day. A manager predicts future possibilities while planning and this helps in meeting the coming situations. Plans are continuously changed as per the developing situations so the manager will be prepared to face the coming situations. The plans also include unexpected risks such as fire, natural calamities, etc., and set aside resources for meeting such eventualities.
3. Reduces Overlapping and Wasteful Activities.
Plans are prepared for the organization as a whole and then departmental plans are made on the basis of business plans. This exercise will bring coordination among different departments avoiding overlapping and unnecessary activities. The plans will bring clarity to every manager and the activities to be taken up by that department.
4. Facilitates Decision-Making.
Planning is related to setting goals on the basis of forecasting and future assumptions. The managers will take decisions for achieving goals and deciding the course of action to be taken. So planning helps in taking appropriate decisions at the proper time.
5. Attention on Objectives.
Planning helps in clearly laying down the objectives of the organization. The whole attention of management is given toward the achievement of those objectives. There can be priorities in objectives, important objectives to be taken up first and others to be followed after them.
6. Better Co-ordination.
The objectives of the organization being common, all efforts are made to achieve these objectives by a concerted effort of all. The duplication in efforts is avoided. Planning will lead to better coordination in the organization which will ultimately lead to a better results.
7. Encourages Innovations and Creativity.
A better planning system should encourage managers to devise new ways of doing things. It helps innovative and creative thinking among managers because they will think of many new things while planning. It is a process that will provide awareness for individual participation and will encourage an atmosphere of frankness which will help in achieving better results.
8. Facilitates Control. Planning and control are inseparable.
Planning helps in setting objectives and laying down performance standards. This will enable the management to check the performance of subordinates. The deviations in performance can be rectified at the earliest by taking remedial measures.
