Importance of Planning

a) The purpose of every plan and of all derivative plans is to facilitate the accomplishment of enterprise purpose and objectives.

b) Planning therefore gives direction to the activities of the organization. Without plans people would not know what is to be expected of them.

c) Planning also facilitates control. The plans act as standards against which performance can be measured and evaluated. Deviations from plans help to point out weaknesses in the organizational process.

d) Since managerial operations in organizing, leading and controlling are designed to support the accomplishment of enterprise objectives, planning logically precedes the execution of all other management functions. Without planning other management functions would be impossible.

Given the importance of planning then it is essential to identify planning responsibilities. That is who in the organization does planning? By its very nature it is obvious that the responsibility for planning rests with the management. All managers are involved in the planning process.

Planning starts with top management. These top managers working in consultation with the Board of Directors establish the broad goals and strategies of the firm. Middle managers work together to assist with strategic planning and they work individually to develop and implement planning activities within their respective divisions/or units.First line managers also plan for their units and develop operational plans to actualise the planning done at middle level.