Measures to be taken to make planning effective are as follows: 1. Well-Defined Objectives 2. Management Information System 3. Top-Level Initiative 4. Planning should be Flexible 5. Resistant to Changes 6. Careful Premising 7. Integration of Long-Term and Short-Term Plans 8. Cost-Benefit Analysis 9. Proper Forecasting 10. Dynamic Managers.

Step # 1. Well-Defined Objectives:

For efficient planning well-defined objectives are needed. Objectives are to be rational and understandable. They should be realistic and idealistic. This will ensure a sense of direction for the organisation and facilitate control and co-ordination.

Step # 2. Management Information System:

For development of plans, collection of data, analysis and selection of the right alternative is needed. Not for developing but also for evaluation of plans management needs information. So by providing correct and reliable information the development of good plans can be facilitated. Further to make it effective by corrective action management is to be provided with correct and variable information.

Step # 3. Top-Level Initiative:

To make planning effective they are originate at the top. The top management is to take initiative in planning and must support it and it should enlist the support of lower level executives. The lower level may be allowed to submit their plans to the top executives for approval and consideration. The top management should generate interest in planning throughout the organisation.


Further the top level executives are to encourage the participation of lower level executives in planning. This can be achieved by management by objectives, formation of planning committees and the preparation of budgets.

Step # 4. Planning should be Flexible:

Its execution should be oriented to events. In case of changing events alternate or contingent plans should be kept ready for changes. They should be developed step by step.

Step # 5. Resistant to Changes:

Resistance to changes should be met with patient selling of ideas careful dissemination of information and aggressive leadership.

Step # 6. Careful Premising:

In planning premising is an important step. Planning premises constitute a framework within which planning is done. Premises are the assumptions to be made regarding future happenings. It is a pre-requisite for determining future settings. In setting planning premises due consideration is to be given for various factors based on the needs of the organisation.

Step # 7. Integration of Long-Term and Short-Term Plans:


Both short and long term plans are to be prepared and integrated to achieve objectives of the organisation. They should be prepared and integrated to achieve the objectives of the organisation. Perfect co-ordination between the two types of planning is to be achieved.

Step # 8. Cost-Benefit Analysis:

The planners are to undertake cost-benefit analysis to ensure that the benefits of planning are more than the cost involved in it. This can be achieved by establishing measureable objectives, proper decision-making, reasonable premising and formulation of derivative plans for the changing environment.

Step # 9. Proper Forecasting:

One of the important steps in planning is forecasting. Management must have a mechanism of forecasting changes in environment which are influenced by economic, social, political and international factors.

Step # 10. Dynamic Managers:

The managers associated with the task of planning should be dynamic in outlook. They must have the initiative to make business forecasts and develop planning premises. They should always keep in mind that planning is looking ahead and he is to prepare plans for the future which is highly uncertain.