Importance/ Need of planning

Planning is the first and important functions of management it is needed all types of organization it’s importance and rationalities can be explained with the help of following points:-

I) to formulate goals and objectives

Planning supports to set the goals, it provides framework to achieve such pre-determined goals setting of goals and achieving the targets of such goals is one of the rationality of planning.

Reduction of Uncertainties and risk

Planning supports to reduce future risk and uncertainties. All the business organization are facing different types of risk like changes in technology change in demand of customers change is a rules and regulation etc. A good planning is based on pose experience and proper analysis of environment planning helps to mitigate (reduces) future risk and uncertainties.

III) Economical Operation

Good planning helps to utilized available resources optimally, more efficiently and effectively. As a result the activities of the business economical.

IV) Avoids the tendency of doing random activities

Planning avoids random activities and it makes systematic, integrated and orderly activities so that the goals of the organization could be achieve.

V) Basis of Control

Planning is setting of the standard such standard are the basis for evaluating actual performance controlling activities finds out the difference between the standards and actual performance and applies necessary corrective action. Hence planning is regarded as the  basis of control.

VI) Encourage innovation and creativity

Planning is a thinking process a planners should be innovative and creative planning helps the managers to think new and innovative ideas about understanding the situation and solving the problems.

VII) Avoids business failure

Planning is the basis of business success because it supports to make proper assessments of uncertainties. The planners evaluate strength and weakness of the business and it also makes assessments about opportunity and threats in the environment proper planning and mobilization of resources avoids the chances of business failure.

VIII) Improve motivation (Interested to work)

Planning improves the motivation factors of all employees it increase the sense of evolvement in the team of organization. It also increases the moral of the employees.

IX) Ensure better co-ordination

Planning insures better co-ordination among the activities of different departments of an organization. Planning is the basis of other functions of management. It provides organizational/departmental and unit wise goals based on which the function of business implemented.

X) Tickles business completes

Today business word is more complex environment is ever changing. In this scenario the business people should be able to identify and grab the opportunities from the business environment for which better planning is need. Planning tackle support to face such problems.

XI) Improve Competitive Strength

Planning supports to improve competitive strength to the management as well as overall  business it properly asses the strength, weakness of the business. If forecast future courses of action and possible events carefully that means it insures success in the future and strength of business.