Planning states in advance where to go and in which direction to move ahead. It is a continuous process that helps in reducing the risk of uncertainty. Planning is an essential activity that provides the rationale for undertaking policies in the direction of achieving goals. Following are the highlighted features of planning:
(i) Focus on objectives: Planning serves as the guidelines for what goals are to be achieved and how they are to be achieved. They ensure that the objectives of an organisation are achieved on time. For this, the management formulates plans, keeping in mind specific goals, and the managers make sure that the plans are purposeful. For example, if a sales target is to be achieved, then the organisational plans must reflect this objective.
(ii) Stepping stone: Planning serves as the stepping stone for all other functions of an organisation. It precedes the other functions such as organising, directing, staffing and controlling. This is because plans state the objectives of an organisation along with the means to achieve them. The other functions, on the other hand, are planned in accordance with the objectives. Once the plans are determined, the roles of other interrelated functions fall into places. Thus, planning sets the basis for the other functions of management.
(iii) Pervasiveness: Planning must be done at all levels of the organisation. It is not a function of just the top level managers; it is a function to be performed at every level of management. However, its scope differs across the various dimensions of business. For example, the top level managers have to chalk out the policies regarding the overall management, whereas the middle level managers plan out the authority to be assigned to the subordinates. On the other hand, the lower level managers make out small targets for day-to-day working.
(iv) Continous Process: Planning is a continuous process. This is because, after the implementation of one plan, the need arises for formulating the next plan, keeping in view the new objectives and circumstances. Moreover, within a plan period, the need arises to modify the plan as per changing needs and requirements. Thus, planning is a continuous process.
(v) Choice making: Planning is a process of making choices amongst different alternatives for the attainment of the desired objectives. These alternatives are based on the path to be taken, strategies or policies to be followed to achieve the goals, etc. Managers need to evaluate these choices thoroughly and then select the most rational scheme to achieve the set objectives.