Tuesday, September 11, 2012

Importance (Advantages) of planning


1.       Uncertainty reduction: - Modern world is full of uncertainty. Organizations have to operate or learn in most uncertain and unstable environment. What happens tomorrow, no one can forecast. Planning reduces uncertainties by anticipating future change in environment. It reduces uncertainty by forecasting opportunities and threat in environment.

2.       Goal focused: - Planning aims to achieve goal in future. The main objective of formulating planning is to achieve goal in time. It identifies right course of action to reach the goal.

3.       Integrate management function: - Planning integrates management functions. It is the basis for other management functions. It is fundamental function which integrates other functions like organizing directing, coordinating and controlling. Without plan no manager can function well.

4.       Gives direction: - Planning gives direction to the total activities of an organization. A plan focuses on the future that forces and organization to think ahead and identify potential options, problems and solution. Planning directs all functions towards achieving goal.

5.       Basis for control: - Planning is the basis for control. Planning and control are interrelated. Planning sets goal which serves as performance standard for controlling purpose. Therefore, control function of management is directly linked with planning. Planning sets goal and control ensures that goal is going to be achieved in time. Control measures progress towards goal and provide information’s about the causes of success and failure. So, that plans may be adjusted for future. Control system provides feedback that tells what went wrong and what kind of solution to seek. Control is not possible without planning.

6.       Ensures better coordination: - Planning ensures better coordination among different activities in organization. It establishes better linkage among different department and activities. Planning expects contribution from all activities and departments. Planning believes that only coordinated effort can achieve organizational goal.

7.       Better utilization of resources: - Planning facilitates in effective utilization of resources. It helps in rational distribution of resources among different functions. It focuses on effective utilization of resources, controls wastages and scraps.

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