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By Dr. Jay Feldman, “Features and Limits of Planning”

Planning the company’s future is one of management’s main responsibilities, Dr Jay Feldman says. It sets the groundwork for any additional management tasks including organizing, directing, etc. Let’s examine the idea of planning.

Planning

Planning is already understood to be the process of determining what has to be done in advance. It serves as the foundation for all the organization’s future plans. According to Dr Jay Feldman planning fills the gap between the organization’s existing situation and its desired state.
Hence, in essence, business planning entails establishing goals for the organization and creating a strategy to achieve these goals. Managers and employees can see clearly what to work towards once the objectives are set.
Managers play a crucial role in the task of corporate planning. The managers must be innovative, creative, and multitaskers when planning. Additionally, upper, middle, and lower management must all perform the task of planning.

Importance of Business Planning

Planning is a crucial part of management since it informs the manager of the direction the company should take. Also, Dr Jay Feldman says it assists the company in lowering uncertainty. Let’s look at a few crucial roles that planning plays.

Planning gives a sense of direction, point one

Creating a preset action plan for the organization is what is meant by planning. It truly outlines what must be done and how in advance. In a manner, this aids in giving the managers and employees a feeling of direction. They wouldn’t be structured or coordinated if they didn’t plan.

Planned actions lessen uncertainty

According to Dr Jay Feldman, planning not only identifies goals but also foresees potential changes to the business or organization. As a result, it enables the management to deal with the uncertainties and get ready for these developments. Planning equips the managers to deal with any uncertain situations by taking into account prior events and patterns.

Planning minimizes waste

The needs of all the departments are taken into account in the intricate plans created. By doing this, it is made sure that every department is aware of the strategy and that all of their operations are synchronized. Thinking clearly results in acting clearly as well. There are no delays, resource waste, or disruptions in any of the work that is done.

Planning invokes Innovation

In reality, managers must innovate a lot during the planning process. Being the initial task in management, it is a highly challenging task. It challenges the manager to think differently and encourages them to widen their perspectives. Thus, managers need to be imaginative, observant, and inventive, Dr Jay Feldman says.

Makes Decision=Making Easier

In business planning, the organization’s objectives are determined, an action plan is created, and even future events are predicted. All managers at all levels now have an improved ability to make decisions. Moreover, decision-making becomes more rapid.

Creates Standards

Upon completion of the company planning, the managers now have standards and goals in place. This gives the manager the benchmarks to compare real performances to. This will assist the association with estimating on the off chance that the objectives have been met or not. Planning is therefore a must for controlling.

Issues with Planning

Business planning has some limits even though it is essential and required for any corporation. Let’s examine some of the constraints placed on business planning.

1] Rigidity

The manager typically only follows the plan when the planning function is finished and the action plan is established. Depending on the situation, Dr Jay Feldman says the manager might not be able to alter the plan. Or the manager might not want to alter the strategy. For a company, this level of rigidity is not desirable.

2] Unsatisfactory under dynamic conditions

There are very few things that are static or stationary in an economic climate. Conditions in the economy, politics, ecology, and law are always shifting. It becomes difficult to foresee future developments in such a dynamic setting. The plan might not succeed if a manager is unable to make accurate forecasts.

3] Preparation can hinder creativity in three ways

While creating a plan requires innovation, managers then blindly execute the plan. Despite the dynamic nature of the business, they do not alter the plan. Sometimes they even fail to offer the right advice to senior management. The tasks grow repetitive.

4] Preparedness Costs Money

Planning is a cost-consuming process. Specialized professionals must be hired for the project because it is an intellectual and creative process. Also, it requires extensive investigation, fact-gathering, and number-crunching. The cost of planning can occasionally outweigh its advantages.

5] Incompletely Correct

When making plans, we must anticipate the future and foresee specific impending events in the company and the sector. Hence, there can’t be absolute confidence in these situations. Thus, it can be claimed that business planning is not precise.

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