What is the Function of Planning?

Function of planning refers to the steps you should take to reach a specific goal of your business. The planning process includes a careful analysis of the latest market trends and current resources. Moreover, it includes the prediction of future demand and emerging markets. The function of planning is regarded as an integral function of management. It offers a helping hand in organizing business functions. Planning incorporates the determination of the necessary activities, assigns them to the right personnel with delegated authority, and offers the raw materials and tools. It is important to plan the necessary staffing as it showcases the workforce that a business needs. Function of planning is essential to function for startups, medium-sized businesses, and large-scale businesses. By selecting the planning function, you will be able to reduce business sustainability risks on a large scale. In addition to encouraging innovation, it ensures that resources are used efficiently.

Function of Planning
Function of Planning

Key 4 Function of Planning

Being a manager is not a walk in the park in the business world. This fact holds true for people who are completely new to management. To ensure effective management, regardless of management level or industry, the following four functions must be carried out: If you take a close look, you will see that everything done by the managers falls under four different functions. The four basic Function of planning includes planning functions, organizing functions, leading functions, and controlling functions. Every managerial function is known to occur repeatedly throughout business processes, primarily in sequential order. Effective managers are known to use a specific framework to successfully achieve the business organization’s objectives:

1. Planning

The managers hold responsibility for the objectives and long-range vision of the business organization. The Functions of planning are inclusive of goal setting and visioning, in addition to the work to create the plan to reach the specific objectives. They recognize the challenges and hurdles that act as obstacles in the business. Following that, they act on forward-thinking initiatives and make decisions that help the business achieve its goals.

Workload management, or resource allocation, is another aspect of management’s Functions of planning. Planning is important for the business enterprise. They are known to be responsible for different kinds of planning, such as strategic planning, tactical planning, and operational planning. Strategic planning is considered the most crucial and highest level of planning. Function of planning recognizes future opportunities and threats to set the business enterprise’s objectives and long-term direction. Tactical planning helps accomplish short-term and midrange goals. Operational planning includes daily operations. It includes the adoption of strategies and principles, which are laid out in the tactical plans. It helps achieve the big-picture objectives of strategic planning.

2. Organizing

The organizing function is the next part, which shows the way in which the managers will distribute the resources, set the staffing levels, structure the departments, and delegate the tasks. Such a function is known to incorporate everything, ranging from the assignment of the right-fit tasks to the proper team members. Functions of planning help to determine the way in which the team members relate to one another within the business’s organizational structure.

3. Leading

Every business, whether it is an enterprise operation or creative agencies, looks for a force to drive it and push it to achieve the desired objective. The business needs to move through different business layers. Thus, they will have similar needs for the departments, projects, teams, work structure, or organizational structure that is in place. Hence, the leadership management function is considered to be an integral part of the job of the manager. The leading Functions of planning are known to focus on people instead of work tasks. Business leaders and managers offer inspiration and direction to those who are following them. Function of planning remains in the form of motivating, rallying, instructing, inspiring, redirecting, praising, encouraging, demanding, and pushing.

There are different approaches to leadership in management, and each of them comes with its own set of pros and cons. It is important to keep in mind that no style is fit for all. Well-skilled managers will move between the approaches. Coaching is effective for those employees who help stay on target. Supporting management is known to work wonders for the highly skilled team as it helps improve the team’s constant performance, interpersonal relations, and different metrics. The leadership’s delegating style helps assign tasks to the employees. The Function of planning will free up the leader’s time for higher-level tasks like goal-setting and developing a long-term vision for the specific project. It is the quickest and simplest technique for capturing the attention of managers. It works constantly with high-performing business teams only.

4. Controlling

Controlling is inclusive of the efforts of the management, which assures that the business objective is accomplished properly. It includes ongoing plan analysis and iterative updates to specific plans based on needs. The project monitoring component of the manager’s job might overlap with the project management component slightly. The teamwork is known as the “robust project management suite,” which is used by the project leads and managers to boost the project workflows. The controlling of Functions of planning includes resource allocation, staffing assignment, budget adjustment, performance evaluation, deadline setting, and management schedule.

These four Functions of planning are regarded as a powerful and effective framework for effective leaders to prioritize and categorize responsibilities and tasks. Moreover, they help identify the skills of the specific leadership that are suitable for the business enterprise. It is hard for managers to be above the long-range plans, the specifics of several concurrent projects, and the detailed planning processes. Teamwork is recognized as a powerful and effective function of planning that can help busy business executives become more organized. They help focus the effort and leverage management skills to track the necessary project details.

Importance of Function of Planning in Management?

The function of planning is important as it helps to improve sustainable growth and efficiency. However, the challenging market competition and dynamic world contribute to the importance of management planning. It is important to understand the benefits of functions of planning. The function of planning will help managers stay motivated to devote their efforts and time as an essential part of their role. It helps improve business growth and efficiency. The function of planning is recognized to be an indispensable part of mid and small-scale businesses with complicated structures. Now, we will tell you about the 10 reasons that make planning in management extremely important:

Useful in placing the proper goals

Although a plan is the course of action to achieve the goal, it can help to support the specific SMART goal setting. Function of planning is useful in assessing the goals and find whether it is realistic or now. Thus, it is useful for improving the decision-making process. It predicts if the business enterprise will be able to achieve the specific objectives.

Creating the standards and goals

Strategic formal planning has the important function of providing direction to lower-level managers. It showcases the goals of the business organization department. Furthermore, it assists managers in prioritizing activities based on the importance of the goal. Function of planning is also effective in setting the right standards to assess performance. Without these standards, it will be challenging for business managers to take the proper actions to remain on track.

Effective resource allocation and use

The function of planning refers to the effective use of material and human resources. It starts with a good plan that is known to focus on the goal. Moreover, it takes the available capabilities into account.

Removing the risks of overlapping of the wasteful activities

The efficient function of planning provides clarification about the expectations and responsibilities of the team, department, and team members. It assures that the activities do not overlap. They also help to improve coordination. In addition, it is useful in determining wasteful activities. The removal of these activities is useful in decreasing waste. It is useful for saving valuable resources and time.

Beating the competitors

The function of planning process involves seeking a realistic view of the strengths and weaknesses of the business enterprises. Moreover, it reveals the vulnerabilities and gaps of the competitor. The correct planning provides a competitive edge.

Useful in earning the stakeholders’ trust and credibility

It is important to draft a solid plan to motivate the investors and creditors of the business. Thus, you will be able to drive the potential audience toward the business. Function of planning will be helpful in finding and engaging new investors within a short span.

Enhancing the team spirit

People feel motivated and engaged after understanding the work’s relevance. Planning reveals the link between employee input and the business objective. Thus, a function of planning is useful in reducing internal competition among employees. Functions of planning also help boost team spirit and motivation.

Decision-making improvement

The function of planning is considered an indispensable part of business as it helps to improve time management and decision-making processes. It provides a clear and concise road map.

Decreases the risks of uncertainty

The uncertainty of the future will increase the risks of business sustainability. There is no business that can control the competitive and economic environment. Planning provides the ability to anticipate challenges. Functions of planning are also beneficial for reducing future uncertainty and saying no to risks.

Boosting innovation

Functions of planning help determine the course of action that will help reach the desired business objectives. It also motivates innovation and creative strategic thinking.

Why do the Functions of Planning fail?

Though Functions of planning are considered a primary management function, business managers tend to avoid it in practice. It is because they believe that formal types of planning are unnecessary because they can use their gut instinct and strategic vision to keep the business on track. Now, we will tell you the reasons why business enterprises encounter failure during the adoption of the strategic plan:

They do not understand the importance of planning.

There is a wide range of business managers who have a can-do attitude. They fail to understand that a lack of proper planning can degrade business performance. Hence, they are not willing to make the desired changes.

Lack of sufficient knowledge

Some of the popular tools necessary for planning are PESTLE analysis, SWOT analysis, environmental scanning, the VRIO Framework, and resource analysis, to name a few. At times, the planning fails miserably because the manager does not have sufficient experience in specific areas. Thus, it is important to create a marketing plan to take the business to new heights. However, you need to remember that the creation of the marketing plan is completely different from the operational planning.

Absence of meaningful business goals

At times, business managers do not go for planning as they do not have any specific objectives that will motivate or engage them. It is more common for business to operate without a mission statement.

Absence of self-discipline

Creating and pursuing business objectives need discipline and dedication. The business plans might fail if the business does not have the desired skills and personal strength to create an effective management plan. It is more common for businesses to operate without an appropriate mission statement.

They are too dependent on their own experience.

At times, the planning in management does not succeed, as they have the notion that planning is nothing but a waste of their time. Instead, they rely on their own capabilities. They do not take favorable conditions into account, owing to which the planning fails miserably. Failure of the Functions of planning can hinder the business’ growth.

Lacking sufficient time

Drafting a proper plan is not an easy task. Several times, managers tend to avoid plan creation as they are loaded with a bunch of responsibilities. Some managers give more preference to strategic plans at work or home. It leads to severe failures in the plan. The managers should go specifically for schedule planning. If the manager does not have sufficient time for the role, he should reduce the number of responsibilities. In addition, they should avoid the micromanaging process. They should be more focused to create proper functions of planning process so that they can increase the return on investment of the business. 

Practice for the successful Function of Planning

Now that you understand the benefits of planning functions in management, you might want to reap them all to make your business stand out in the crowd. Here, we will discuss the practices you should follow for a successful Function of planning:


Though planning happens to be a managerial task, you should not make the mistake of creating it along the way. Planning happens to be an inclusive and collaborative process. It will be wise to take the opinions of other employees into account to make the Functions of planning process a grand success. If you make them a part of the plan’s creation, they will be eager to share the responsibility during the execution process.


You should make sure to communicate the strategic plan and desired results to your employees. The manager needs to motivate open communication, which will eventually motivate them to provide correct feedback. Thus, you should make certain improvements to the specific plan.

Avoid assumptions and use data.

Though everyone has their own assumptions related to the markets and businesses, it is not mandatory that all of them be true. So, it is recommended to come up with a plan instead of making assumptions, as it helps reap the benefits of proper functions of planning. You should make sure to conduct proper market research, look for focus groups, and talk to the employees.

Related article: What is Functional Planning? How does it works?

Efficient and growth

It is recommended to come up with successful Functions of planning as it helps to improve growth and efficiency. You should work towards creating the prerequisite culture within the business. Thus, you should help the employees of the business develop and learn the necessary skills. Thus, the employees will be more focused on committing to demanding plans and ambitious objectives.

Ready for change

To conduct effective functions of planning process, it is necessary to eliminate old and obsolete processes and revise various strategies, which include hiring, innovation, and firing. Choosing the proper plan for managing the process is essential, as it requires more commitment and courage.


Through effective strategic planning, you will be able to come up with an actionable yet formal document that guides the priorities and daily activities of the business. It needs much effort and knowledge. By hiring and implementing the functions of planning, you will be able to become a better manager. Thus, you will be able to set the proper goals and decrease future uncertainties. Functions of planning play an integral role in accomplishing the effective use of material and human resources. Moreover, it helps to engage potential employees on a wide scale. If you want to create an effective planning process, it is important to improve the professional skills, personal qualities, and organizational culture of the business so that you can achieve ultimate success in the business.

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