The Basic Components of Business Planning function

What are the basic components of business planning function?

The Basic Components of Business Planning function
Image Source - https://pixabay.com/photo-2899922/
Business Planning is an important aspect of every business organization. The following article discusses about the basic components required for planning function of management.

Being one of the most important functions of a business management, planning is an essential part of it, which leads a business to a level which is wanted or intended. Effective planning enables business management to design the activities in such a manner as to facilitate the process of monitoring and curtailing time and efforts while it aids a business management in attaining the predefined goals and objectives successfully.

Planning is composed of some important components. Such as, Mission; Objectives; Policies; Procedures and Budgets.

Mission: It refers to the purpose of a business which is expressed in a few words generally. In this way, the objectives of a business firm are communicated in order that its people may follow them constantly.

Objectives: Objective is a purpose that each and every employee or department or division needs to fulfill in a way as is expected. Attaining the specific objectives leads the employees to contribute greatly to the common goals of a business entity.

Policies: Policies serve as guidelines for the objectives to be attained. They direct the employees about how to work and behave in a business organization.

There are various policies that a business needs to formulate in terms of sales, production, marketing and accounting and financial policies.

Procedures: Procedure refers to the process of a particular task. It is a direction to the employees as to how they can accomplish the tasks following the related ways or customary methods.

Budget: Budget is nothing but a plan prepared for both purposes, such as, planning and controlling. It must be noted that the process of planning involves preparing different budgets as per the requirement. By means of preparing the budget the comparison between the actual performance of a business and the expected performance is made

Effective planning is necessary for a business entity for its growth and survival in the market and being in the money constantly. A business should also strive to increase its productivity, as productivity is a measure of efficiency leading to generate greater revenues. It must be noted that productivity is the result of effective planning as well. As it goes in these words, “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.”

Written by:

K. A. Fareed (Fareed Siddiqui)

Writer, Trainer, Author, Software Developer

BBA, MBA-Finance, MPhil-Financial Management, (PhD-Management)

MA-English, MPhil-English

Level 1 - Leadership and Management ILM – UK

Pursuing CMA-USA

Individual Member of Institute of Management Consultants of India

 


Let us know how you like this article. Like it and Rate it below.
828 0
0
0 stars - by 0 user(s)

Related Articles

Starting a business in the Arab world can be a very profitable venture. This article provides a detailed perspective on things you need to know about starting a business in the Middle East..

It is important for a business organization to ensure time and again that its employees are competent and up for new challenges. The competence level of each employee contributes greatly to the total organizational development and competencies. .

Modern Currencies are in the nature of a debt claim by a monetary authority of a nation or a monetary union. These fiat currencies are no more linked to any real value, which makes them vulnerable to speculation, creates hurdles, risks, costs and unpredictability.

Post Your Comment

There are no comments yet.