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Benefits of planning
Planning produces benefits that are essential to effective management. It enables
the manager to anticipate problems, rather than to merely react to them when they arise.
In many cases, anticipation results in prevention. But even when anticipated problems
occur, the manager can respond in a reasoned fashion, without being under pressure to
produce an off-the-cuff, ill-considered "solution."
Planning also helps the manager establish specific objectives, so that he is in
control of the progress of his group and of his career. Without definite objectives, his
work performance will be haphazard and success will be a matter of luck. Furthermore,
sound planning makes other managerial tasks easier. Designing or modifying the
structure of the organization, directing subordinates, and evaluating performance
depend on setting and charting a course to achieve department objectives.
Although all managers must plan regardless of their position in the company
hierarchy, the scope and complexity of planning will increase as the manager moves up
the organizational ladder. Top managers are preoccupied with determining corporate
strategy, increasing the rate of company growth, and developing new markets. Mid-
level managers must coordinate, minimize overlapping, and enhance resource-
utilization between various company departments and groups. First-level managers and
supervisors spend considerable time implementing policies and procedures, assigning
work activities, and devising ways for enhancing the efficiency and effectiveness of
work operations.
Types of plans
Plans can be classified according to their duration, function, or scope.
Duration: Short-range planning is usually done at the lower levels of the
organization, while long-range planning takes place chiefly at the upper management
levels. Short-range plans are usually single-use plans developed to deal with "one-shot"
situations and then discarded. A common form of single-use plan is the budget; once the
period of time covered by the budget is completed, the budget is replaced by a new one.
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