Question

Explain any four points of importance of Planning function of management.

Hint:

Effective planning is crucial for guiding the organization towards achieving its goals, minimizing risks, and improving resource utilization.

Answer 1

The importance of the Planning function of management are: (i) Planning provides direction: Planning gives a clear direction to the activities of the organization and helps to avoid unnecessary efforts.
(ii) Planning reduces the risk of uncertainty: Through forecasting and preparing for future contingencies, planning helps minimize risks associated with uncertainty.
(iii) Planning reduces overlapping and wasteful activities: By clearly defining objectives and procedures, planning ensures resources are utilized effectively, preventing duplication of work.
(iv) Planning promotes innovative ideas: Planning encourages creativity and innovation, as it often involves assessing new possibilities and alternative courses of action.
(v) Planning facilitates decision making: By setting objectives and strategies, planning helps managers make informed and well-guided decisions.
(vi) Planning establishes standards for controlling: It provides benchmarks for performance evaluation, ensuring that organizational activities are in line with set goals.