The commitment principle attains a specific position in the study of management. From the first sight, what does the term imply? Is it a kind of commitment made for something? Or is it a rule governing commitment in business. Well it is nothing like that. It is actually a principle which sets the criteria which is required to be used in selecting a particular time range for the planning made by a company.
The commitment principle states that, “Logical planning encompasses a future period of time necessary to fulfill, through series of actions, the commitments involved in the decisions made today”. The underlying meaning of the statement in real is that, the actual long-range planning does not solely depend on the plan for the future decisions, but it mainly depends upon the planning for the future impacts of decision taken today. It can also be said as, decision is a commitment to all the necessary step which can guide an enterprise to a new height of success.
There are many small and big instances of commitment principle that can be cited. An airplane company may make a strict planning before starting with the project. The company may make an estimation of a time period of 12 years for the launching of a new model; and it may include 5 or 6 years engineering assets and design, and more 5 or 6 years in production and sales. This is a commitment and this decision should have good future impacts. This is a type of commitment principle. Now, I hope my readers have a clear conception regarding the commitment principle.