Advantages of Planning
Planning helps the organization achieve its objectives early. In this way planning helps the organization in many ways. Some of the many advantages of planning are briefly explained below:
1 Better utilization of resources: planning decides what to produce and how to produce. Then there is the possibility of utilizing the resources effectively.
2 helps in achieving objectives: planning sets goals or objectives of an organization. This gives effective direction to the control of employees of the organization. In this way planning helps the organization accomplish the pre determined goals or objectives.
3 economies in operation: unnecessary production ineffective utilization of resources and unnecessary activities of an organization are eliminated through planning. This results in the economy of operations.
4 minimize future uncertainties: the uncertain future increase the importance of planning. Planning foresees the changes and uncertainties taking shape in future and devices method to face them. Some future uncertainties are thus minimized through planning.
5 improves competitive strength: Competitive strength is improved by adding new line of products changes in quality and size of the product expansion of plant capacity and changes in methods of work. These are achieved through planning.
6 effective controls: control without planning is an impossible one. Control is used only when there is a well chalked out plan. So planning provides a basis for controlling.
7 motivations: a well prepared plan encourages the employees of an organization and gives them a sense of effective participation. Planning motivates the employees as to what the organization wants to achieve and defines it to the employees.
8 co-operations: planning helps the management pull the individual to achieve common objectives or goals. Planning provides well defined objectives unity of direction well published policies procedures and programmes. All these facilitate to get co-ordination which consequently avoids duplication of work and interdepartmental conflicts.
9 promote growth and improvement: planning sets standard to control purpose. So useless and aimless activities are avoided. It leads to the growth and improvement of an individual and the organization.
10 develop rationally among management executives: disciplined thinking of management executives is geared up through formal planning. Management executives take action only after putting their thoughts in blue print. In this way planning brings rational thinking and approach among management executives.
11 prevent hasty judgement: we can analyze a problem through a plan and consider the alternatives before taking a sound decision. It is possible to plan in advance as to what will be done and how it will be done. This process avoids hasty judgement.
12 reduce red Taoism: junior most executive can act according to pre planned decisions. There is no need for him to get any fresh permission for his action. It saves time energy cost and reduces red Taoism.