Planning is a process that involves qualitative and quantitative reasoning. A good plan is based on some basic principles of planning. A scientific approach is necessary when planning a company's direction. This article discussed seven fundamental principles of planning.
1. Principle of Pervasiveness
Planning is the responsibility of top management executives. They are involved in strategic planning. Despite this, planning is not limited to them. Middle and front-line managers are involved in one form of planning or another. To explain, daily, supervisors plan how the day's activities will be achieved.
2. Principle of Selection of Alternatives
During planning, there will be several alternatives to choose from. According to this principle, the management should choose the best alternative course of action. This is the one that is optimal and brings out the best result. Also, it is one that is efficient and effective.
3. Principle of the Limiting Factor:
The principle of planning involves understanding limiting factors. These are factors that the entity cannot achieve within the limit of its resources.
Company executives should consider all limiting factors during planning. This is where quantitative reasoning and scientific methods are required.
4. Principle of Innovation:
Innovation is part of every business. It is necessary to satisfy customers and motivate employees to work. In the planning phase, innovative ideas can be inserted into the product by the marketing team. The IT team should consider including artificial intelligence in the plan to ensure that less time is used for business processes.
5. Principle of Follow-up:
After planning, it is paramount to return to the drawing board of the plan from time to time. This is because the business environment is dynamic. Therefore, any new change will require a follow-up plan to override previous planning.
The principle of follow-up provides that from time to time the current plan can be revisited. This helps to keep it flexible no matter the economic condition.
6. Principle of objectives
The primary purpose of planning is to satisfy the company's objectives. Therefore, the principle of objective states that plans align with objectives and the objectives must be specific, measurable, achievable, reasonable and timely.
7. Principle of Securing Participation
This principle of planning explains that senior management should practice management by objective. Plans should not be done by leaders only. Subordinates should be carried along during planning. This will help them understand the plan. Also, the participation will increase employees' motivation to actualise the plan.