PRINCIPLES OF PLANNING

Harold Koontz and Cyril O’Donnel give the following principles:

“Principle of Navigational Change. A periodical revision of the longer range plans

is necessary as the firm moves into the future.

“Principle of Primacy of Planning. Planning is a prerequisite for other functions

such as organizing, directing, and control.

“Pervasiveness of Planning. Planning is performed by managers of all types and

at all levels.

“Planning Communication. The interchange of plans must provide complete

information for each functional area involved.

“Commitment Principle. Since uncertainty will remain regardless of how much

planning takes place, a manager should relate the degree of commitment of his resources
to the need for definite plans.

“Principle of Flexibility. Planning must be stated in terms of the relationship

between the advantages of flexibility and its costs.

Louis A. Allen presents the following planning principles:

“Principle of Planning Stability. The stability of a plan tends to vary inversely

with its extension.

“Principle of Positive Action. The probability of a future event occurring tends to

increase as effort is applied systematically toward its realization.

“Principle of Present Choices. Current decisions tend to limit future actions.

“Principle of Resistance to Change. The greater the departure of planned changes

from accepted ways, the greater the potential resistance by the people involved.

“Principle of Cause and Effect. Future events tend to result from current and past
occurrences.

“Principle of Gradual Economic Change. Economic magnitudes tend to change

over the long term.