Importance of Planning

 

 


  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.

     2. Planning reduces the risks of uncertainty:

  • 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.

      4. Planning promotes innovative ideas:

  • 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.

      5. Planning facilitates decision making:

  • 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.
     6. Planning establishes standards for controlling:
  • 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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