Importance of Planning

                               Importance of Planning 1. It focuses on Objective:             Once the objective of the business has...

                              Importance of Planning

1. It focuses on Objective:

            Once the objective of the business has been fixed, the next step is to prepare a plan for its effective accomplishment. The enterprise objective cannot be realized overnight. It has to achieved gradually over a certain period. 

2. It helps to avoid 'no work' or  'work pressure' situations:

            In the absence of planning, the workers in an organization may have to work even beyond the working time in the volume of work particularly towards the end of the year. In the absence of planning leads to 'no work' or 'work pressure' situations establishment.

3. It helps to avoid wastage of resources:

            Planning makes it possible make optimum use of the available resources, namely, time, money, materials and machines. This is possible as the employees and executives know beforehand what they have to do.

4. It ensures efficiency as well as effectiveness:

            Efficiency is ensured by doing right things and effectiveness is achieved by doing things right. Planning helps to do not only right things but also things right. Each department knows what it is supposed to do well in advance as a result of planning.

5. It reduces risk and uncertainty:

             Planning is for future use and future is uncertain. While planning, future uncertainties are anticipated and adequate provisions are made to meet or overcome the same. Planners know very well that 'prevention is better than cure'.

6. It provides for co-ordination: 

             The work done in any organization is team work. Different departments participate in the process of goal attainment. Planning makes the responsibilities of each individual and department becomes very clear.

7. It facilitates control:

             If planning is the first function of management, control is the last function. "Planning without control is useless and control without planning is meaningless". Control helps the enterprise to know whether the plan has successfully implemented and object has been achieved. The task of control requires the establishment of standards against which the actual performance is measured.

8. Planning also provide the scope of decentralization:

             Dispersal of authority throughout the organization what is known as decentralization. Once the basic and derivative plans of the enterprise have been prepared, the next step is to explain the same to all the subordinates who are going to perform the various tasks. Thus, planning helps the managers to involve the subordinates in the process of target attainment.

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