Just as each systematic knowledge is based on some important principles, similarly management and managerial functions are also depend upon some principles of planning.
So, management specialists have propagated some principles of planning, Who may make planning very effective, on being adopted.
Principles of Planning
Following are the principles of planning in management:
1. Principle of Contribution to Objectives
We know that each institution or enterprise has some predetermined objectives and goals.
According to this principle, every plan and sub-plan should make positive contributions towards achieving the objectives and goals of the institution.
2. Principle of Planning Promises
The principle of planning explains that the planning is related to the future and for the future, there are several assumptions.
Hence, while formulating plans, complete, clear and reliable knowledge should be collected and forecasts should be well prepared.
3. Principle of Efficiency
The efficiency of planning depends on the results.
This principle tells that the maximum results should be obtained from minimum cost and effort.
If this does not become possible, or the goals are not efficiently achieved, it may be regarded as the inefficiency of planning.
4. Principle of Primacy
This principle of planning tells that the targets and the goals are the first activity.
Without planning, neither other functions of management get proper direction, nor their efficient and effective performance becomes possible.
Hence, planning is the important and primary function of management, on which attention should be paid, on priority.
5. Principle of Flexibility
According to these principles of planning, plans should be flexible. Flexibility means to change according to need.
Flexible plans may be revised, in accordance with the changed requirements and the losses may be averted or minimized.
So, planning should be such which may be changed and revised, according to the circumstances. This principle is used for long-term plannings.
6. Principle of Navigational Change
This principle of planning puts emphasis on the fact that just as a sailor is attentive towards taking his boat to the destination, by paying regular attention to the speed, direction, and balance of the boat, each moment.
Similarly, the managers should go on testing the plants, during the course of their implementations and required changes and improvement should be a continuous process.
7. Principle of Commitment
This principle determines the ‘Time period‘ of planning.
According to this principle the planning, the planning should necessarily be at least we for that period, which is required for fulfilling commitments made with its employees, suppliers, debtors, and the consumers, etc.
8. Principle of Pervasiveness
This principle explains the fact that planning is a pervasive activity, which is required at all levels of business management.
Hence, planning should be in accordance with the needs of all levels of Management.
9. Principle of Framework
Policies mean those general principles which govern the functions of the organization for the achievement of its objectives.
This principle of policy determination specifies that the policies of the institution should be unambiguous, simple, sound and justified, to make its planning effective.
Besides, components of planning should also be kept in view.
10. Principle of Timing
This principle of planning Lays emphasis on the point that while determining the objectives for the institution, the time limit for achieving various objectives may also be well determined.
Plans, sub plans, and programs should also be prepared for achieving the objectives.
Their time limits should also be essentially determined.
11. Principle of Alternative
Hence, before asking decisions, various alternatives should be discovered and necessary information should be gathered about them, and then the best alternative should be selected.
According to this principle, the best, which may contribute towards achieving the determined objectives in decided time, at the lowest cost, be selected.
12. Principle of Limiting Factor
This principle stated that managers should identify the factors having only limited achievements of the desired goals while selecting the best alternatives and suitable solutions to critical and objectionable factors should be found.
13. Principle of Competitive Strategies
If any competitive institution exists, then the planning activities and techniques of other Institutions should also be kept in view.
By doing so, success in business, among the competition, maybe ensured.
14. Principle of Cooperation
This principal emphasis that the success of planning depends upon the cooperation of the whole organization.
Hence, in Planning formulation, sufficient cooperation of the executives, managers, and subordinates of various levels should be obtained, so that plans may be executed efficiently and unnecessary hurdles may be removed to get desired results.