The major benefits of planning are given below-
1. Planning provides directions:
- By stating in advance how work is to be done planning provides direction for action.
- Planning ensures that the goals are clearly stated so that they act as a guide for deciding what action should be taken and in which direction.
- If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals.
- Departments and individuals in the organization are able to work in coordination.
- If there was no planning, employees would be working in different directions and the organisation would not be able to achieve its desired goals.
- It also leads to unity of direction.
- Planning is an activity which enables a manager to look ahead and anticipate changes.
- By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.
- Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.
- In order to overcome from uncertainties, plans are made.
- The plans also include unexpected risks such as fire or some other calamities in the organization.
- The resources are kept aside in the plan to meet such uncertainties
3. Planning reduces overlapping and wasteful activities:
- The organizational plans are made keeping in mind the requirements of all the departments which are derived from main organizational plan
- As a result there will be co-ordination in different departments.
- Hence, planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals.
- It helps in avoiding confusion and misunderstanding.
- Since planning ensures clarity in thought and action, work is carried on smoothly without interruption.
- Useless and redundant activities are minimised or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them.
- Planning is the first function of management, new ideas can take the shape of concrete plans.
- It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.
- Planning requires high level thinking and it is an intellectual process.
- So, there is great scope of finding better ideas, better methods and procedures to perform a particular task.
- This process enables the manager to think differently and predict future conditions.
- Hence, it makes the manager creative and innovative.
- Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action.
- The manager has to evaluate each alternative and select the most viable proposition.
- Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions.
- As in planning goals are set in advance and predictions are made for future.
- These predictions and goals help the manager to take instant decisions.
- Planning involves setting of goals.
- The entire managerial process is concerned with accomplishing predetermined goals through planning, organising, staffing, directing and controlling.
- Planning provides the goals or standards against which actual performance is measured.
- By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected.
- Therefore, it can said that planning is a prerequisite for controlling.
- If there were no goals and standards, then finding deviations which are a part of controlling would not be possible.
- The nature of corrective action required depends upon the extent of deviations from the standard.
- Therefore, planning provides the basis of control.
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