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HIGH
MANAGEMENT SCHOOL
Self-
Learning
NATURE OF PLANNING Module
12
Quarter 1
Organization & Management – Grade 11
Quarter 1– Self-Learning Module 12: NATURE OF PLANNING
First Edition, 2020
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Printed in the Philippines by Department of Education – Schools Division of
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Management HIGH
SCHOOL
Self-
Learning
Module
12
Quarter 1
NATURE OF PLANNING
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Introductory Message
In addition to the material in the main text, you will also see this box in the
body of the module:
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.
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For the learner:
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MODULE
NATURE OF PLANNING
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EXPECTATIONS
At the end of the module, you are expected to discuss the nature of planning
and appreciate the importance of planning.
PRETEST
Directions. Read the sentence carefully and write T if the sentence is correct
and F if it is false. Write your answer on the line before the number
RECAP
Let’s take a recap guys!! 1.2.3.
Answer the following questions:
1. What is economic development?
2. Enumerate the different stages of economic development?
LESSON
Every activity begins with a plan. One must be identified what people want
to achieve before undertaken in accomplishing desired results. Careful planning lays the
foundation for effective decision-making. Companies should be effectively formulating plans
for other management functions to follow through.
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Planning is the first management function and a very essential component of
management. It is also considered as the central function of management. Below
are the characteristics of planning:
CHARACTERISTIC OF PLANNING
1. Planning is goal-oriented.
Planning is made to achieve the desired objective of the business. The goals
established should general acceptance otherwise individual efforts & energies will
go misguided and misdirected. Planning identifies the action that would lead to
desired goals quickly & economically. It provides sense of direction to various
activities.
2. Planning is looking ahead.
Planning is done for the future. It requires peeping in the future, analyzing,
and predicting it. Thus, planning is based on forecasting. A plan is a synthesis of
the forecast. It is a mental predisposition for things to happen in the future.
3. Planning is an intellectual process.
Planning is a mental exercise involving creative thinking, sound judgment,
and imagination. It is not mere guesswork but rotational thinking. A manager can
prepare sound plans only if he has sound judgment, foresight, and imagination. It
is always based on goals, facts, and considered estimates.
4. Planning involves choice & decision making.
Planning essentially involves a choice among various alternatives. Therefore,
if there is only one possible course of action, there is no need for planning because
there is no choice. Thus, decision making is an integral part of planning. A
manager is surrounded by a number of alternatives. He has to pick the best
depending upon requirements & resources of the enterprises.
5. Planning is the primary function of management.
Planning lays the foundation for other functions of management. It serves as
a guide for organizing, staffing, directing, and controlling. All the functions of
management are performed within the framework of plans laid out. Therefore,
planning is the basic or fundamental function of management.
6. Planning is a Continuous Process.
Planning is a never-ending function due to the dynamic business
environment. Plans are also prepared for a specific period and at the end of that
period, plans are subjected to revaluation and review in the light of new
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requirements and changing conditions. Planning never comes into end till the
enterprise exists issues, problems may keep cropping up and they have to be
tackled by planning effectively.
7. Planning is all Pervasive.
It is required at all levels of management and in all departments of the
enterprise. Of course, the scope of planning may differ from one level to another.
The top-level may be more concerned about planning the organization as a whole
whereas the middle level may be more specific in departmental plans and the lower
level plans implementation of the same.
8. Planning is designed for efficiency.
Planning leads to the accomplishment of objectives at the minimum possible
cost. It avoids the wastage of resources and ensures adequate and optimum
utilization of resources. A plan is worthless or useless if it does not value the cost
incurred on it. Therefore, planning must lead to saving time, effort, and money.
Planning leads to the proper utilization of men, money, materials, methods, and
machines.
9. Planning is Flexible.
Planning is done for the future. Since the future is unpredictable, planning
must provide enough room to cope with the changes in customer demand,
competition, government policies, etc. Under changed circumstances, the original
plan of action must be revised and updated to make it more practical.
IMPORTANCE OF PLANNING
Planning is essential to the success of any business. A company should
have the plan to follow, leaders are better equipped to prepare for the future. A
business plan creates a focus for the company, uniting employees toward
common goals. When everyone works together, it’s easier to manage time and
resources, to position the growth. (https://smallbusiness.chron.com/planning-important-74858.html).
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B. Planning is important because it reduces uncertainty.
It compels managers to consider future events that may affect their company.
Anticipating changes and their impact will help managers and other workers to react
to such changes appropriately.
C. Minimizing of wastes will result if there is proper coordination of
activities due to planning
Negative practices, ineffectiveness, and inefficiencies could be easily detected
and can be corrected or eliminated.
D. Establishing goals and standards during planning may be used for
controlling.
Another necessary managerial function. Without planning, goals and
standards will be absent, and control will not be possible.
ACTIVITIES
Directions: In one whole sheet of paper, write a 100-word essay and address
the following questions:
1. Why planning is considered as the central function of management?
2. In this time of the pandemic, how your family prepares for this kind of
situation when it comes to your security and protection?
WRAP UP
1. What is planning?
2. Why planning is important in the business environment?
3. Enumerate the characteristic of planning.
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VALUING
Point of Reflection
How do you see yourself 10 years from now? What is your plan in the
future?
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POSTTEST
Directions: Read the sentence carefully and fill the missing word in the
sentence. Choose the missing word below and write your answer on the line
provided.
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KEY TO CORRECTION
guide 5. F 5.
alternatives 4. T 4.
cost 3. F 3.
reduces 2. F 2.
Forecasting 1. T 1.
Postest Pretest
R E F E R E N CE S
A. Books
https://kalyan-city.blogspot.com/2012/02/importance-of-planning-why-planning-
is.html
https://www.managementstudyguide.com/planning_characteristics.html
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