Important of planning
1 planning makes objectives clear and specific: before plans are drawn it is essential that objectives or goals to be achieved must be clearly stated. This ensures effective implementation of plans and heir direction of efforts very often the goals and objectives are not specific as result the actual activities undertaken deviate from the desired path leading to wastages of effort and inefficiency the planning exercises the goals clear and specific because it begins with the determination of objective.
2)Planning makes activities meaningful : with clearly defined goals in the process of planning action become meaningful in the sense that employers and managers know how their activities relate to organizational goals they realize t hr importance of their own contribution towards the employers to work harder.
3 planning reduce the risks of uncertainly: business organizations operate in an uncertain environment and there are risks of various types. Planning helps to reduce the risk associated with uncertainties. In the process of planning attempt is made to look into the future and predict it. Although future events cannot be predicted with absolute accuracy planning helps management to anticipate the future and prepare for the risks by making necessary provisions to meet unexpected turn of events. Through proper planning and execution events can be turn in a desired manner. Planning helps to identify potential dangers and overcome the adverse effects to large extent.
4 planning helps coordination: planning makes coordination of various activities departments and groups relatively easy. Plans lay down in advance what should be done by whom and when. Planned programmes of activity serve as the basis of harmonizing the effects of different divisions departments and people. Thus for example manufacturing and sales activities can be coordinated only if plans of the production department are drawn on the basis of sales plans. In the absence of proper planning of interrelated activities the production department may turn out goods which the sales department may not be able to sell and conflict may occur between the heads of two departments. Confusion and misunderstanding may also occur in the absence of integrated planning of different activities. Coordination of departmental operations is facilitated by planning through the establishment of common goals as guide posts.
5 planning facilitate decision making: decision making involves searching for various alternative courses of action evaluating them and selecting the best one. Planning facilitates this process. Planned targets are indicators on the basis of which alternative course of action are considered. Evaluation as well as selection of the best alternative is determined is reference to the targets set. By predicting future conditions decision can be taken with greater confidence since plans lay down in advance what is to be done and when hasty decision and random actions can be avoided. Without planning decisions may lead to undesirable results and shall direct activities towards uncertain goals.
6 planning promotes creativity: in the process of planning managers have the opportunities of suggesting ways and means of improving their performance and achieving higher targets. There is a challenge before management not only to overcome future problems but also to take maximum advantage of favourable conditions. This induces creative thinking and innovation of new methods of operation besides developing new ideas leading to growth and prosperity of the business.
7 planning provide the basis of control: controlling presupposes the existence of planned goals and standards of performance. Without planning there can be no control because evaluation of performance against predetermined goals is the basis of control. Plans provide the standards against which actual performance is compared. Deviations of actual results from the standards indicate the nature of corrective action needed. Therefore planning may be said to provide the basis of control.
8 planning leads to economy and efficiency: plans and programmes indicate precisely how various takes are to be utilized for the purpose. Availability of advance information on such matters leads to economy. This is because planning helps employees to avoid to needless efforts and reduce wastage. What is to be done how and when are specified in the plans. Hence there is no scope for using trial and error methods. This also leads to efficiency of operations.