Question

Planning is beneficial to all. In light of this statement, discuss the importance of planning.

Answer 1

Importance of Planning:
Focuses attention on objectives and results: Every organisation exists to achieve certain objectives Planning concentrates attention on the dominant goals of the organisation.

Reduces uncertainty and change: Uncertainty and risks are inevitable and planning cannot eliminate them. But planning enables an organisation to cope with uncertainty and change.

Planning helps to identify potential threats and opportunities. It also keeps management alert to the changing environment of business. In this way, planning provides additional strength to the organisation for survival and growth in the face of turbulence.

Provides a sense of direction: Planning saves an organisation from drifting and avoids aimless activities. Planning makes work more meaningful and activities more orderly.

Helps in coordination: Planning is the best stage for the integration of diverse forces at work. Sound planning inter-relates with all the activities and resources of an organisation.

The activities and efforts of various departments and divisions can be harmonized with the help loan overall plan, planning makes for balance and consistency in efforts Planning leads to a consistent and coordinated structure of operations.

Provides economy in operation: Planning facilitates optimum utilization of available resources. It makes at possible for things to occur which would not otherwise happen. It improves the competitive strength of an organization by helping it to discover and exploit opportunities a rational solution to problems, planning results in the use of most efficient methods of work.