January 5, 2015

Summary - Principles of Planning - Koontz and O'Donnell

Related to Purpose and nature



Principle of contribution to objectives

Every plan has to contribute positively toward the accomplishment of enterprise objectives.



Principle of efficiency of plans

Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan.



Principle of primacy of planning

Planning is the primary prerequisite for all other functions of management. Every action of the manager follows a planning step.



Principles Applicable to Structure of plans



Principle of planning premises

If more people in an organization use common and consistent planning premises, the enterprise planning will be more coordinated.



Principle of policy framework

If more policies, appropriate to the organization, are expressed in clear terms and form and if manages understand them, the plans of the enterprise will be more consistent.



Principle of timing

If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives.


Principles Applicable to Process of Planning



Principle of alternatives

Select the plan which is the most effective and the most efficient to the attainment of a desired goal.



Principle of limiting factor

Consider limiting factor in generating alternatives and selection from alternatives.
(See Decision Making Review Notes)



The commitment Principle

Planning can cover a period over which commitment of resources can be clearly visualized.



The flexibility Principle

Building flexibility in planning is beneficial, but cost of building flexibility needs to be evaluated against the benefits.



The Principle of navigational change

Manager needs to periodically check events of the plan and redraw plans to maintain the move toward a desired goal.



Principle of competitive strategies

In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing.


I have to cover these principles in chapter summaries on Planning.

The Nature and Purpose of Planning - Review Notes
Strategies, Policies, and Planning Premises - Review Notes
Objectives and Goals - Review Notes
Decision Making - Review Notes
Planning Function of Management - Global Issues


Principles of Management subject revision is in month of January and February.
Updated 25 July 2014


MBA Core Management Knowledge - One Year Revision Schedule


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