Importance Of Planning
Planning plays a very crucial role in all other functions. Because planning acts as a foundation for the management function. The following are the importance of planning
1. Primacy of planning
Planning exit in all the managerial functions while performing any function, like organizing, directing, staffing, motivating, controlling, one has to plan first.
2. To offset uncertainty & change
As there is a continuous change in the environment organization has to work in a changing atmosphere. These changes can be coped with by planning, for eg more focus on manufacturing eco-friendly products to avoid environmental pollution & safeguarding the environment
For eg Reliance is introducing new plans and products to sustain in the competition.
3. Focus on the objectives
Because of the planning process, all the resources are utilized for the achievement of objectives. Planning helps in setting the objectives & these objectives as a direction to the business.
For eg – In planning, we set growth objectives like sales growth of 10% for the year 2017-18; for this objective, the organization should focus on quality improvement.
4. To help in coordination
It is rightly said if you want to coordinate all the department planning should be very accurate. With the help of planning, harmony can be achieved in the organization.
5. To help in controlling
As in planning objectives are set clearly if any deviation occurs from the standard it is very easy to control the deviation
For eg: – In planning, one has set the objective of growth of sales in one year, but if it is not achieved, it is very easy to take control of the deviation.
6. To increase organizational effectiveness
Planning overall increases the effectiveness of the organization. By planning, all the resources are utilized in the best way it also ensures control & coordination in the organization & overall efficiency.
