We explain what administrative planning is and what its principles and characteristics are. Also, how it is classified and its elements.
What is administrative planning?
The administrative planning of a company is the first and most important of its functions . It consists of developing strategies that guide the actions of the organization to meet its goals.
The ultimate goal of a business is usually to make a profit, and administrative planning allows you to devise various strategies to reach that ultimate goal in the most efficient way.
Planning is a tool that allows an organization to efficiently allocate resources , designate the most necessary activities and maintain clear objectives.
Depending on the type of administrative planning, short, medium and long term strategies can be projected . The planning must be realistic, with actions that are within the capabilities of the organization.
Principles of administrative planning
The most important principles of administrative planning are:
Unit. It is the duty of every company for planning to be adequate. Each area must guide its strategies according to the general plan.
Rationality. It is the ability to plan based on logical and real criteria, which represent possible action plans.
Precision. It is the level of loyalty that general planning acquires so that each area of the company guides its efforts in the expected way.
Commitment. It is the acceptance and execution of the planning that each area of the organization must follow.
Flexibility. It is the ability to adapt to changes, which makes possible the permanence of the company over time .
Administrative planning is characterized by:
Unit. The strategies implemented by each area of a company must be carried out according to the guidelines of a general plan.
Penetrability. Strategic planning falls on both the hierarchical levels and the executive managers.
Continuity. Strategy planning is a constant activity, necessary to keep the organization running.
Precision. Action plans must be clear and concrete, to reduce the possibility of errors.
Beyond the set objectives, the unforeseen events that may arise or the person in charge of the management , the administrative planning of the company as a whole is necessary to optimize its productivity and profits. The planning process for any company consists of the following steps:
Set goals. It is the first step. The objectives of the company as a whole and of each area in particular are made clear, that is, what is going to be done is established.
Establish action plans. It is the second step. It raises, in a logical and realistic way, how the objectives are to be met.
Establish alternative strategies. It is the third step. Alternative paths are analyzed in order to take advantage of opportunities or anticipate possible problems.
Planning analysis. It is the final step. The effectiveness of planning is analyzed once the stipulated period of action has been completed. It allows to apply improvements for a new strategic planning.
The administrative planning of the company can be of different types:
Strategic It is usually long-term, is planned at the global level of the company and focuses on the management area.
Tactic. It is usually medium term and is planned for each department or middle management.
Operational. It is usually short-term and is planned for each area or operational command.
Tactic. It is usually short-term because it is designed in crisis situations.
Normative. It is usually in the medium and long term and plans the set of rules that regulate the internal functioning of the organization.
The elements of administrative planning are the data and information about the company that will make possible the development of an action plan. The main elements are:
Mission . It is the purpose for which the organization was created.
Vision . It is the long-term situation in which you want to place the organization.
The values. It is the set of principles by which the institution is governed.
The objectives. They are more specific than vision, although they can also be long-term.
The strategies. They are the actions and methods that allow channeling efforts and resources to meet the objectives.
The politics. They are the regulations and decisions that guide the work of each area of the organization.
The resources. They are all the resources that make up the organization, both human and material and infrastructure.
The budget and expenses. It is the capital that the company has and the expenses (both fixed and eventual).
Importance of administrative planning
The importance of the administrative planning of the company is that it allows it to create efficient strategies to guide it towards the fulfillment of its objectives.
Adequate administrative planning facilitates decision-making on resources ( human and material), policies and activities to be adopted by the organization.
Administrative planning is not an activity that has an end . It is a constant process that occurs in the life cycle of the organization. Once the stipulated deadlines and objectives are met, new strategies are proposed to continue with their activity.
The above content published at Collaborative Research Group is for informational and educational purposes only and has been developed by referring to reliable sources and recommendations from technology experts. We do not have any contact with official entities nor do we intend to replace the information that they emit.
She has pursued her studies in The United States, where she has graduated in Business and Economics and is currently finishing her Master studies in International Economics and Finance. Miss. Amputee is fluent in three languages: English, Spanish and Russian and has elementary knowledge of French and Italian. She love exploring how Collaborative Research Group can become the best tool to achieve the (necessary) educational change.