Importance of planning

What is Planning ?

Planning refers to think in advance what is to be done when is to be done how is to be done and who is going to do.

Planning is basically the gap between where we are and where we want to be.

All the work in process between what we are and what we will become is called planning.

It is the first function and one of the most important function of management.

• Importance of Management 

Planning provide direction

By stating in advance what is to be done, when is to be done, how is to be done and who is going to do. Planning provide direction, planning acts as a base for guiding future cause of action.

Planning facilitate decision making

With the help of planning objective is determined and to achieve these objectives various plans are created, evaluated and among these the best alternative is selected which helps to achieve the objective of the organisation in doing so planning facilitates in decision making

Planning stabilizes standard of controlling

Standard  are those criteria against which actual performance is measured in the absence of standard the actual performance cannot be measured and these standards are determined with the help of planning only. So, planning establishes standards for controlling.

In short planning provides the basis of controlling that is controlling is not possible without planning

Planning promote innovative ideas

Planning is a intellectual process which involves higher order of thinking and imagination. So, always there is a possibility of finding better ideas in short while planning many new ideas arises and it results into something innovative.

Planning reduces the risk of uncertainty

With the help of planning assumptions and predictions are made on the basis of past experience this assumptions and prediction helps the manager to anticipate with such changes.

Planning reduces overlapping and wasteful activities

To achieve objective various plans are created according to the requirement of different departments and these plans are clearly communicated to each and every individual which help in avoiding confusion misunderstanding and minimising useless activities.

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Planning process

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