Management and Planning

Topics: Management, Strategic management, Plan Pages: 6 (2303 words) Published: May 14, 2013
Planning involves in every aspect of people’s life. If an individual wants to achieve success, he or she must have a proper preparation. It is also the same in business.” Organizations that fail to plan are planning to fail”, I do agree with this opinion. A plan demonstrates your intentions, mission, vision and method to carry it out. It is an important part of doing business. Without planning, an organization may not operate smoothly and may lead to failure. This essay will examine both the advantages and disadvantages of planning and show why planning is essential in business. In this era of hyper-competition, globalization and technological revolution, companies are forced to make speedy decisions in order to keep up with the market. Responding to the pressure of making quick and right choices, many firms have reduced or even emulated the time allocated to planning. Based on how rapid the market change in today business, cut down planning in doing business seems to be appropriated since the uncertainty and fast timing of entrepreneurial warrant quick action.(Matherne, 2004, p.156) But should founders of new ventures plan or should they act immediately? Is planning still a useful activity in doing business? Let’s take a look at planning and what benefits it brings to business. Planning is an activity which consists of defining the organization’s goals, establishing an overall strategy for achieving those goals and developing a comprehensive set of goals to integrate and coordinate activities. It is the primary functions of management since it sets the basic path for managers in organizing, leading and controlling their cooperation. Planning can also be defined in terms of formal or informal. (Robbins, DeCenzo, Coulter & Woods, 2012, p. 86). Most managers do planning in their works whether it is informal like planning in their head or setting up a formal plan after carefully examined the situation and collect ideas from the staffs. Informal plans are rarely written down onto paper and publicly announced to other people. In contrast, formal planning always takes lots of time and effort of many people. The goals are specific and set with a period of time to achieve. Although it takes time, effort and not always guarantee success but formal planning is still remain as a priority thing to do for every manager. Planning establishes goals and direction for organizations. With a clear mission and vision, employees can coordinate their work together and managers can make sure that they are on the right track. Goals can also improve the performance of a firm. Latham (2004, p. 216) stated that “a goal is a standard of for assessing one’s satisfaction”. Achieving a goal will not only bring rewards and praises to individual but it can increase their satisfaction. When one’s morale is high, he or she will have a tendency to work better and expect a more difficult challenge. It is always a benefit for companies when staffs commit to their work and demand harder mission. Also, with a step by step direction, people will not be distracted from outside factors that affect performance. Wasteful, overlapping activities and uncertainty are reduced through planning. In the process of planning, managers have to anticipate changes, gather information and develop responses which help avoid mistakes. (Robbins et al., 2012, p. 86). It allows people to make faster decisions since things have been predicted and unnecessary trials do not have to be conducted. Planning also helps people manage their resources, minimizing factors that can slow down their activities. By giving an idea about the availability of resources, the efficiency and effectiveness of works will be increased. (Delma & Shane, 2003, p. 1167). Furthermore, planning provides time for each mission so that each person can track their own process and organize the work to keep up with the whole company. One thing that contributes to the important of formal planning in business is...
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