By good and effective planning, we mean such a plan which is capable of achieving the predetermined objectives and goals. The management experts have expressed various thoughts on the criteria and measurement of effective planning.
Effective planning is that, which has continuity, Unity, flexibility, and accuracy.
Similarly, good planning should incorporate simplicity, flexibility balance and qualities of maximum utilization of the sources.
Elements of Good and Effective Planning
Following are the essential elements of good and effective planning in management:
1. Simple
Good planning should be simple.
Planning should be so simple and understandable that every employee of the institution may easily understand and implement it and may give his valuable contribution to the achievements of the goals.
The simplicity of the plan is quite essential, in all those areas of human activities, where largely organized activities are required.
2. Well Defined Objectives
A good plan is based on well-defined objectives.
These objectives, which may be for the functional departments of the total organization or for the individual should be fully unambiguous and rational.
If the objectives are not clear, neither the enterprise may function successfully and efficiently, nor other departments may provide their Corporation in the right direction.
Related: 14 Principles of Planning in Management (With Examples).
3. Comprehensive
Planning should always be comprehensive and intensive.
It should incorporate various items, time limits, objectives, policies, procedures, rules, powers, and responsibilities of the officers and employees, human and organizational activities.
Similarly, all those activities and requirements, which are required for achieving the goal should also be sufficiently described within the plan.
4. Flexibility
Effective planning should also have the element of flexibility.
Flexibility means introducing changes according to the changed circumstances and requirements.
Planning should be flexible, so that changes may be affected, according to changing circumstances, without incurring heavy financial and work efficiency losses.
5. Economical
We know that planning is a process of selections, in which the best alternative is selected from various alternatives.
But, according to his principle of planning, the selection process should be economical, so that the objectives of the organization may be achieved, at low costs.
A plan which is good but expensive is not regarded well.
Hence, for the economic plan, it is necessary that minimum sources may be spent on the formulation, execution, and evolution of the plan.
6. Stability
A good plan should also have the quality of stability, which means that due to general changes, the plan may not require basic changes and general changes may not deviate the determined plans.
Hence, for the stability of any plan, it is necessary that it is should be formulated in consonance with the long-term circumstances and hence this should base on forecast prepared on the basis of proper, rational and factual facts regarding futures circumstances, problems, and difficulties.
7. Free from Ambiguity
An essential element of a good plan is that it should be free from ambiguity.
So that it may be understood and executed easily.
If the plan is ambiguous, it will lead to differences between the officers and the employees, various doubts will arise and several problems with emerging and efficient implementation and operation of such plans will not be possible.
Related: 21 Importance of Study of Business Environment (Explained).
8. Balanced
For effective and good planning, it should be balanced.
This balance should be in use of resources for achieving the objectives, in long term and short term plans and in all departmental plans.
If some areas or functional area is left in the plan or is given relatively less attention, the achievement of the objectives on the basis of the plan may be full of problems.
9. Practicable
Effective planning should also have the quality of being practical.
Hence, the plan should be such, which may be easily implemented.
If the plan is not practicable, it will be impossible to implement it and such plans will prove to be just the ‘Paper plan’ or ‘Casteless in the air’.
Thus, the organization should formulate such plans, which may be executed easily and practice also.
10. Futurity
Planning is always future-oriented.
Hence, while formulating plans, the forecast should be prepared for future actions and activities, on the basis of data collected properly for various facts.
Besides, plans should also be formulated, by taking future requirements, goals, sources, market conditions and competitive strategies, etc. into consideration.
11. Action Oriented
For successful planning, it should also have the quality of being action-oriented, because planning is necessary for advancing towards activeness from passiveness.
Hence, each officer, employee, head of the department, and other related parties should have the objective of inspiring the way of development.
If it is not so, that ill effect will be that in place of the solution of future problems, this will become all the more complicated.
12. Participation
Owner, management and subordinates, all should have the participation for good planning and they should deliberate on important issues.
Only the plan may be executed successfully.
Related: 13 Major Functions of Marketing (With Examples).
13. Reliability
Sufficient information, data, facts should be obtained at the proper time from reliable sources for good and reliable planning.
14. Other Qualities or Elements
- There should be coordination in short-term and long-term planning.
- Economic social effects should also be kept in view.
- Proper attention may be given to human aspects.
- Plans should be logically sound.
- Responsibilities should also be determined along with the powers delegated for plan execution.
Thus, the essential elements of good and effective planning are very important for all business ideas.
Read More:
- Top 10 Role and Importance of Venture Capital (Explain)
- 21 Benefits and Limitations of E-Commerce Businesses
- Top 10 Characteristics of Good and Ideal Project Planning
- 5 Types of Market Structures and Examples (Economics)
- 15 Tips for Starting A Small Business With No Money
- 15 Key Features of Effective Management Control System
- 13 Negative Effects of Globalization (With Examples)
- 18 Characteristics of an Entrepreneur (Explained)
- 10 Key Objectives of Pricing (With Examples)
Leave a Reply