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Importance of planning in an organisation

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Importance of planning in an organisation

Planning in an organisation is the systematic process or method by which activities are carried out for a specific period of time. Planning is an indicator of purpose. Purpose means aim, objective, goal, target etc. Understanding the purpose for which an organisation was established make its activities exclusive and unique. It will help the organisation become focused, determined, and persistent. The management can execute projects decisively and tenaciously, this can only be done when planning comes to bear.

Types of planning: Comprehensive planning, Business plan, Site planning, Life planning, Event planning, Economic planning, etc.

Main characteristics of planning in an organization: Planning increases the efficiency of an organization. It reduces the risk involved in business activities, facilitates proper coordination within an organization, aids in organising all available resources, gives right direction to the organisation, it’s important to maintain a good control, etc.

Steps for creating an organisation plan: Decide on categories: First think about all the work that your organisation does and list out the general categories.

Set Goals: Make sure the goals for your work in each category is clear. Ask yourself “where do we want to be with this work in a year”?

Plan a schedule: When all the task are listed, number them to show a general order-What comes first. What should happen at the same time? What comes last? Then draft a schedule for the task either when they will be completed or when they will begin. The goal is to set a schedule that is challenging but realistic.

Choose responsibly: Assign responsibilities by asking people to volunteer to be responsible for goals or tasks. A person’s name next to a task doesn’t mean that they’ll do it just that they take responsibility for making sure it gets done.

Support: Brainstorm other individuals and organisations that can provide support, assistance or advice in helping you carryout particular tasks or achieve general goals.

Follow through: Come up with a plan to check in support and encourage people as they carry out their tasks. This may mean choosing one person to regularly check on the stages of different tasks. Plan evaluation: Finally set a time to revisit the whole plan as a group to evaluate how things are going and revise assignments and schedules. This may be a few months or a year in the future.

The importance of planning in an organisation cannot be over emphasised for the following reasons

Establishing goals: setting goals that challenge everyone in the organisation to strive for better performance is one of the key aspect of the planning process. Goals must be aggressive but realistic.

Organisation cannot allow themselves to become too satisfied with how they are currently doing or they are likely to lose ground to competitors. The goal setting process can be a wakeup call for managers that have become complacent.

Managing Risk and Uncertainty: Managing risk is essential to an organisation’s success even the largest organisation cannot control the economic and competitive environment around them. Unforeseen event occur that must be dealt with quickly before negative financial consequences from the event become severe. Planning encourages the development of “what if “scenarios and develop plan to deal with them. The pace of change in business is rapid and organisation must be able to rapidly adjust their strategies to these changing conditions.

Team Building: Planning promotes team building and a spirit of cooperation. When the plan is completed and communicated to members of the organisation everyone knows what their responsibilities are and how other areas of the organisation need their assistance and expertise in order to complete assigned tasks. They see how their work contributes to the success of the organisation as a whole and can take pride in their contributions. Potential conflict can be reduced when top management solicits department or division managers input during the goal setting process. Individuals are less likely to resent budgetary targets when they had a say in their creation.

Creating competitive advantage:

Planning helps organisations get a realistic view of their current strengthen and weakness relative to major competitors. The management team sees areas where competitors may be vulnerable and then take advantage of their weaknesses. Observing competitors actions can also help organisations identify opportunities they may have overlooked.

A plan can help an organisation: Set priorities for job to be done, make sure task get done on time, focus on one thing at a time, share work among staff, board members and volunteers, make your goals clear to funders, get a handle on big projects by breaking them down into smaller tasks, see the big picture of what your organisation is doing.

In conclusion, planning is indispensable in any organisation that wants to develop. Planning managers only need to be motivated, encouraged and carried along for the organisation to excel above the other.

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