Planning is one of the functions of management. It touches all the levels of business management. There are many reasons why your business should have a plan. Get to learn how an effective one should be like.
One of the most important functions of management is planning. Without it,
your business is heading to nowhere. It is said, “If you don’t know where you’re going, no road gets you there.” When you plan, you’re said to be thinking before doing and deciding in advance what is to be done.
Planning is all about how it’s to be done, when it’s to be done and who is to do it. Haimann says, “Planning is deciding in advance what is to be done, when a manager plans, he projects a course of action for the future, attempting to achieve a consistent, coordinated structure of operations aimed at the desired results.”
Planning makes your business management to achieve its objectives without many problems as it provides a focused guidance. Your business stays away from aimless activities. Your business uncertainties are greatly minimized.
Activities are run orderly and purposely. They are done in the possible minimum time. The departments of your business do not experience any wastage of resources. Your business operates economically and efficiently. Planning makes your business to be in control. It clearly specifies the targets to be achieved.
Through planning, your business is able to adopt technical development. Obsolete and old machines are replaced with new ones if you have a plan.
Seven Qualities of a Good Plan
1. It should be Definite and Objective-The statement that lays down your objectives should be clear and definite.
2. It should be Simple-Express it in an understandable language which is not complicated. If you complicate it, your staff won’t interpret it. This results to nothing done in your business.
3. It should be Comprehensive-Make it to be detailed with all the necessaries that are required in the attainment of the objectives.
4. It should be Flexible-If you make your plan to be rigid, then it won’t be able to accommodate the future uncertainties of your business. Instead, make it broad enough to meet the challenges that occur in the future.
5. It should be Economical-Make it to recover its costs. It should result in the least operating costs.
6. It should Establish Standards-Your plan should lay down the standards to be achieved. Use these standards to compare with the actual performance achieved. If there are any deviations, then you should note them down for later corrections.
7. It should be Practicable-Make your plan to be realistic. When formulating it, keep in view the limitations of planning.
Now you know how important this function of management is. Go ahead and have a good plan.
