Foundations of Planning

Foundations of Planning

1.0 Introduction

This paper discusses the foundations of planning, purpose and its relationship to performance of employees in a company. In the beginning, planning and its purposes are defined and then the different types of plans formulated by the managers are discussed. Its relationship with performance is then explained where certain issues with planning are criticized.

2.0 The purpose of planning

According to Robbins and Coulter (2009:173)" Planning involves defining an organization's goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities". The main purpose of planning is to provide direction to the employees at all levels to achieve organizational goals. It helps in minimizing the wastage of time among employees and helps the organization to grow as stated by Owen (2002:147)"Good planning can move a business forward quickly".

2.1 The basics of planning

In planning, goals are set to be achieved in a specific time period. These goals are set after being discussed with all the members of the organization to create a common purpose of what is to be achieved at the end of the specified time period. In the end, these plans are used specifically to achieve organizational goals (Robbins & Coulter, 2009). Planning helps in assembling and sustaining the departments in an organization towards a specific aim (Owen, 2002).

2.2 Planning and Performance

Most descriptions of planning state that setting goals is the most important step in the planning process. However, there are certain situations where usual planning definitions are hard to apply (Owen, 2002). Studies show that the organizations that plan need not do better than those who do not plan (Robbins & Coulter, 2009). The planning - performance relationship is affected by the period