- Management by objectives: It facilitates management by objectives. That is, it makes the management formulate the objectives of the organisation in clear-cut terms and take the right course of action to realize the specific objectives.
- Facilities unity of direction and co-ordination: Planning facilitates co-ordination. Through its we-defined objectives. well-publicised policies, programmes and procedures, planning facilitates the co-ordination of all the inter-connected activities and avoids duplication of activities and delays in the execution of activities
- Reduces future uncertainties and charges: A business concern has to work in an environment Which is uncertain and ever-changing, Planning helps the concern in foreseeing the risks and uncertainties in the future and in advance in the best possible way and in preparing the plan on the basis of its decisions in the past and present.
- Facilitates control: Planning facilitates control. Planning determines in advance the work to be done, the person responsible for doing it, the time to be taken to do the work and the costs to be incurred. This makes it easy to compare the actual performance with the planed performance. In case there are deviations. corrective actions are taken to remove the deviations. Thus planning facilitates control.
- Focusses attention on organizational goals and facilitates management by objectives: An organisation has definite goals or objectives, and all the activities of the organization are directed towards the achievement of those objectives.
- Improves adaptability: planning improves adaptability. That is, planning helps the organization in coping with the changing business environment. The anticipation of future events and changing conditions, implied in planning, prepares the organization to meet them effectively.
- Improves competitive strength: Planning improves the competitive strength of the organization by anticipating technological changes and tastes and preferences of people for discovering new opportunities for expansion and. providing for changes in work methods, improvement in quality of products, etc.
- Planning motivation: Planning improves motivation. Planning ensures the participation of managers in the determination of the goals, policies, programmes, etc. of the organization. This improves the motivation and morale of the managers.
- Encourages innovation and creativity: Planning promotes or encourages innovation and creativity on the part of managers, in the sense that many new ideas come to the minds of managers during planning, which basically a deciding function of management.
- Ensures efficient use off resources: Planning ensures efficient use of all resources at the disposal of the concern to achieve organizational objectives. In planning, management evaluates alternative courses of action on the basis of efficiency, and selects only that course of action which is considered most efficient.
- Brings about economy in operation: Planning brings about economy in operation by determining the one best way of doing things.
- Guides decision-making: The success of any organization depends to a great extent on the types of decision made at the various levels of the organization. Decision-making is the making of choice from the various available alternatives after evaluating each of them.
- Facilitates management by exception: Planning facilitates management by exception. That is, planning ensures that top management is not involved in each and every activity, and intervenes only when things are not going as per planning.
- Facilitates delegation: Planning facilitates delegation of authority. Not only managers but also their subordinates take part in planning. The involvement of subordinates in planning necessarily requires delegation of authority to them for getting the things done.
Importance and Advantages of Planning
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