What is management planning?

What Does Planeación en Administración Mean

We explain what administrative planning is, its principles, elements and classification. Also, the administrative process.

Planning can guide the actions of the company for an efficient use of its resources.

What is management planning?

In an organization , planning is the establishment of a strategy that allows to achieve a series of pre-established objectives . The result of the planning process is a plan that will guide the actions of the company and will help to use resources in the most efficient way .

Plans should not be overly detailed and should be realistic - your goals should be achievable.

Within the planning process the following steps can be identified:

  • Establish the objectives of the organization .
  • Design possible future scenarios.
  • Identify the most appropriate courses of action for each of these scenarios.
  • Design a plan.
  • Implement the plan.
  • Evaluate the plan.
  • Readapt the plan.

See also: Management in administration

Planning principles

The principles to take into account for planning to be useful are the following:

  • Flexibility . The plan must be able to adapt to the changes that occur within the organization, either because there were changes in the needs of the firm, in operations or at the managerial level.
  • Inherence. Every organization must have a plan that determines how to solve certain problems and thus achieve the objectives in the most efficient way possible.
  • Rationality. It consists of understanding a problem and then determining the design criteria of the plan, the establishment of alternatives and their application. Decisions must be made based on logic and reason, not based on emotions and values .
  • Universality The plans must specify the amount of resources necessary (considering the resources available within the company) to achieve the established objectives. In this way, once the design of the plan is completed, it can be implemented immediately.
  • Unit. Each member of the firm will be assigned an objective that, in turn, must be guided towards a common goal . Although there is a plan for each of the functions, they must all come together in a main plan.
  • Commitment . To reach the goal, the time that the commitment of each resource will imply must be calculated.
  • Precision. The plan must be exact, any error can affect the rest of the functions of the firm. The more exact the plans, the better the chances of achieving the objectives.
  • Limiting factor. The plan must be designed considering that before each decision the limiting factor that can prevent the achievement of the objectives must be established.
  • Feasibility. Any plan must be realistic: designed based on experience, hard facts, and available resources.

Planning types

There are different types of planning:

  • Strategic . It is a long-term planning carried out by the managers of the organization. It analyzes how external and internal factors impact on the established objectives: advertising campaigns, presence in the media , foray into the market, etc.
  • Tactic. They are the plans that are designed to face a crisis and that is why they are linked to short-term decisions that respond to the strategic plan.
  • Interactive In this planning solutions are designed for problems that could arise in the future, identifying the necessary resources to carry it out.
  • Normative. It consists of a set of rules that regulate the operation of the organization indoors. This plan includes working hours, rest hours, vacations and uniform for staff.
  • Operational. This plan addresses how resources will be organized (including employees) for conflict resolution . In this plan the projects are assigned for each area, the steps to be followed and the deadlines for each one.

Planning elements

The elements that make up the planning are:

  • Vision . What the firm projects to be in the long term.
  • Mission . The purpose of the signature.
  • Objectives . The results that the company intends to achieve. The deadlines and necessary actions should always be detailed, as well as the objectives of each employee to focus their tasks to that end.
  • Strategies . The description of the way in which the efforts to achieve the objectives will be channeled. These include those of the organization as a whole and those of each individual. A good plan always includes a series of alternatives to choose the most appropriate in each circumstance.
  • Policies. The guide that is designed to make decisions for each of the company's areas.
  • Program. The series of actions that must be carried out to execute each part of the plan. You must detail the time it will take to complete each of the parts.
  • Budget . The financial detail of what it will cost to implement a plan. It helps to keep track of its implementation since it details costs , income , expenses, etc.

Importance of planning

In management , a well-designed plan translates into benefits for the company . On the one hand, it helps to allocate resources efficiently, especially for those activities that will enable the achievement of pre-established objectives.

Planning is key to focus efforts and helps to identify what the tasks of each area and employee will be to achieve the objectives efficiently.

Administrative process

The administrative process represents the flow and interaction of planning, organization, direction and control activities to achieve a common objective. All these activities aspire to make the most of all the resources that the firm has available.

The use is not only reflected within the company but also takes into account the shareholders and society. In other words, the administrative process seeks to satisfy both your profit and social needs .

More in: Administrative process

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