Importance of Planning

Question 1

Helps to Set Clear Objectives

Answer 1

Planning helps to set clear objectives,targets and formulate plan to do a course of action.It helps the manager to analyze the present situation of business and on that basis identify the ways of attaining the desired position in future.

Question 2

Provides path of action

Answer 2

Planning ensures that the goals and objectives of the organisation are clearly stated.They acts as a guide and provide a path of action to achieve their goals.It helps the employees to know what the organisation has to do and what they must do inorder to achieve their goals.

Question 3

Planning improves performances

Answer 3

It helps the manager to improve the future performances of the employees by establishing the objectives and selecting a best course of actions.It is beneficial for the organisation.Planning leads to efficient working of the employees.Due to proper planning employees can work according to timely guidelines

Question 4

Minimizes the risk

Answer 4

Planning minimizes the risk.Planning is the process of looking into the future and anticipating the future changes.By deciding the things to be done in advance,planning helps the manager to anticipate the future changes.Changes or uncertain events cannot be eliminated but they can be anticipated by taking preventive measures.

Question 5

Planning leads to optimum utilisation of resources

Answer 5

Organisational plans are prepared by taking iinto consideration the availability of the resources and the proper allocation of the resources for various activities .It also facilitates optimum utilisation of the resources which brings higher efficiency and better results.One can avoid wastage of resources by proper planning.

Question 6

Helps in decision making

Answer 6

There are various alternatives in front of management.Achieving goals planning to select the best alternative by considering all positive and negative outcomes of all the alternatives.Decisions are taken after selecting the alternative course of actions to achieve a predefined goals.It helps the manager to take rational decisions.

Question 7

Useful in setting the standards of controlling

Answer 7

Planning sets out the standards for controlling.So the actual performance can be compared with the standards Planning sets out standards for controlling. So, the actual performance can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such deviation can be bridged by taking controlling steps. Therefore, planning provides a basis for control. It is also important for maintaining discipline at the working place of the organization.

Question 8

Facilitates Coordination of all activities

Answer 8

Planning facilitates the coordination of activities. It reduces overlapping among activities.All activities of business organizations are closely linked with each other which is considered in the process of planning. Sound planning interrelates with all the activities and resources of an organization. Thus, various departments work as per the overall plan, and coordination is achieved.

Question 9

Facilitates other management functions

Answer 9

Every organization functions towards achieving goal and goal is set at the planning stage.Unless the plan is ready, other management functions such as organizing, staffing, etc. cannot be undertaken thus, planning facilitates all other functions of management.

Question 10

Promotes innovative ideas

Answer 10

Planning is the basic function of management. It is a process of decision making that involves the promotion of innovative ideas after critical thinking. Ultimately, these innovative plans result in the attainment of the goals of the organization. It is the most challenging activity for the management as it guides all future actions leading to the growth and prosperity of the organization.