A number of fundamental principles have been devised over the year for guiding managers undertaking planning. Some of these principles are discussed as under,
- Principle of contribution to objective: All types of plans are prepared to achieve the objectives of the organization. Both major and derivative plans are prepared to contribute to the objectives of the enterprise. Planning is used as a means to reach the goals.
- Principles of primacy of Planning: This principle states that planning is the first or primary function of every manager, He has to plan first and then proceed to carry out other functions. Other managerial function are organized to reach the objectives se in planning.
- Principle of Planning Premises: In order to make planning effective, some premises or presumptions have to be made on the basis of which planning has to be undertaken. Plans are, generally not properly structures. The reason being that planning premises are not properly developed. This principle lays emphasis on properly analyzing the situation which is going to occur in future.
- Principle of Alternatives: Planning process involves developing of many alternatives and then selecting one which will help in achieving desired business goals. In the absence of various alternatives proper planning will be difficult.
- Principle of Timing: Plans can contribute effectively to the attainment of business goals if they are property timed. Planning premises and policies are useless without proper timing.
- Principle of Flexibility: This principle suggests flexibility in plans if some contingencies arise. The plans should be adjusted to incorporate new situations. The dangers of flexibility should be kept in mind. The changes may upset the earlier commitments. So the cost of changes should be compared to the benefits of flexibility.
- Principle of Commitment: There should be a time frame for meeting the commitments made. This will ensure the achieving of targets in time.
- Principle of Competitive Strategies: While formulating own. Plans a manager should keep in mind the plans of competitors. The plans should be framed by thinking of what the. competitors will do in similar situations.
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