Importance and Limitations of Planning

Planning has always been a part of the management process ever since the systematic study of management began. Planning, organising, leading and controlling are the primary functions of management. Planning is the first function in the process of management. McFarland writes that” Planning is both an organisational necessity and a managerial responsibility. This blog will help us explore the importance and limitations of planning.


Understanding Planning 


Planning is a process of making decisions about what needs to be done, when and how it needs to be done, and who is to do it. It involves the selection of objectives, policies, procedures, and programs from among various alternatives. It is deciding in advance about a future course of action. It is an intellectual process. These planning is the process of determination of organisational objectives and selecting the course of action i.e. plans for attaining them. Planning is a primary or basic function of management. It is not a one time activity whereas it needs to be done regularly based on market dynamics. Planning begins with some goal or objective that an organisation wishes to achieve. Every manager plans to achieve the goal. Since it is a continuous and never ending process, it should serve the goals of the organisation or an individual. 


Importance of planning


Planning is one of the most significant functions of management. devoid of planning no business can prosper. George R TERRY has said that planning is the base of most successful actions of any venture. Planning becomes necessary due to the following  reasons:

1. To manage by objectives: All activities of an enterprise are designed to achieve certain specified objectives. Planning builds these specified objectives more actual and tangible by focusing on appropriate awareness on time.

2. To secure economy in operation: The planning process involves the selection of a most profitable course of action that would bring best results at the minimum costs. Planning minimises costs because of the emphasis on efficient operation and consistency.

3. Helps in coordination is the essence of management: Without planning strategies, it is not possible to coordinate the different activities of an enterprise. Effective planning integrates to the activity of all departments. It removes unuseful activities and makes actions for meaningful work within the organisation. 

4. Improvement of moral: A well-designed plan will improve more workers because it gives a real sense of participation of the employees in corporate activities. A manager must listen and analyse decisions of peers in order to make effective plans. This will help the manager to look into the future and choose among various alternative forces of action. 

5. Development of an efficient method: Through efficient planning, more efficient methods and procedures of action can be developed.This involves a systematic approach to analysing current processes, identifying areas for improvements, and implementing changes to streamline operations. 

6. The delegation of authority facilitated: A good plan always facilitates the delegation of authority in a better way to the subordinates by clearly outlining roles, responsibilities, and expectations. This clarity reduces ambiguity and empowers subordinates to make decisions and take actions confidently within their designated areas of authority. Additionally, a well-defined plan provides a framework for monitoring progress, providing feedback, and ensuring accountability, further supporting effective delegation of authority.


7. Fosters economy in operations: Planning fosters economy in operations of the enterprise. It minimises costs by reducing overlapping and wasteful activities. This efficiency is crucial for businesses aiming to maximise profitability and competitiveness. For assistance in optimising operations and cost-saving strategies, consider consulting with experienced assignment helpers.


Limitations of planning


Following are the limitations of planning;-

1. Corporate planning is not integrated into the total management system- Usually, the top management fails to identify and associate properly the top management fails to identify and associate properly the formal planning with the central concept of the organisation's financial goal.

2.Lack of understanding of the different steps of the planning process: Management lacks proper knowledge or skill in understanding the different steps in the process of planning. Seeking assistance, such as marketing help or assignment help, can provide valuable guidance and expertise to navigate the planning process effectively.


3.Planning based on poor information and inadequate inputs: Since reliable data and information are the backbones of successful planning. Such information may not be available. Poor information may also be due to faulty forecasting or poor judgement. People can utilise resources such as marketing research assignments help to make effective plans. 

4. High expectation and quick implementation: Due to the excitement and emotional expectations. Expensive planning strategies is an expensive process collection of analysis and evaluation of information and fact and formulation of plans requires a good deal. Of time, money and energy.

5. Deal in option: Planning is a time-consuming process. It may delay the actions, sometimes it is avoided in order to take quick actions.

6. Time-consuming: Planning is time-consuming and it reduces the practical quality of planned vents. Advance planning might delay immediate action and it may result in loss of profitable opportunities.

7. Biassed managers bosses: Every manager does not always behave rationally and objectively. Even planning is affected by the likes and dislikes. Preferences, personal interests etc. of the managers or bosses. Hence. Planning cannot serve the organisational purpose effectively and lose its utility.

8. Difficulties in implementation: Sometimes. Difficulties in the implementation of plans. Such difficulties may arise due to the following reasons that are improper action plans, formulation and communication of proper policies, procedures, rules etc and misunderstanding of plans at the implementation level.

9. Resistance to change: Planning involves a change in goals, expectations, working patterns etc. and managers, as well as employees, have a tendency to resist change.

10. External  forces: External environmental forces do affect the success and effectiveness of planning ecological social-cultural political-legal economical labourers union consumer union etc. are major external forces. These forces have a great impact on the success and failure of the planning.

11. Emergency: Managers are required to respond immediately to unexpected emergency situations or events in such situations managers are bound to take action spontaneously hence planning is of no use.




It is very generic to come across businesses that have no plan for their future goals. But planning is the foundation of any activity whether business or scholastic or any other. The need to plan and execute is very important in today’s world. Without a plan an organisation can not survive the dynamic and competitive market. There are various valuable and trustworthy management plan helpers in the market, who can assist you in making effective plans while keeping your future goals in mind. Fortunately, Oz Assignments provides well-planned and thoroughly researched content to assist you in crafting effective plans aligned with your future goals.