January 24, 2017

Importance of Planning

In any organization Planning plays an important part and importance of planning increases because of the numerous reasons listed below

1. Primacy of Planning

Planning precedes all other managerial functions. Since managerial operations in organizing, staffing, directing, and controlling are designed to support the accomplishment of organizational objectives, planning logically precedes the execution of all other managerial functions. Although all the functions intermesh in practice as a system of action, planning is unique in that it establishes the objectives necessary for all group effort. All other functions are performed to achieve the objectives set b the planning process.

Importance of planning

2. To Offset Uncertainty and Change

There is continuous change in the environment and the organization has to work in accelerating change. This change is reflected in both tangible and intangible forms. Tangible changes are in the form of changes in technology, market forces, government regulations, etc. Intangible changes reflect in changes in attitudes, values, cultures, etc. In order to cope up with the requirements of such changes, organization must look ahead for its future course of action which is basically provided by planning process. Planning does not stop changes in the environment but gears the organization to take suitable actions so that it is successful in achieving its objectives.

3. To Focus Attention on Objectives

Planning focuses on organizational objectives and direction of action for achieving these objectives. Sometimes people in the organization may not be specific about its objectives because of lack of clarity and precise definitions. For example, often we take profit as the objective of a business organization. It is too abstract to be pursued. In order to enforce managerial actions, 1ihis should be defined more precisely. When planning action is taken, these objectives are made more concrete and tangible. The objectives are defined in more meaningful terms so that managerial actions are possible. For example, even if the organizational objective is profit earning, planning activity will specify how much profit is to be earned looking into all facilitating and constraining factors.

4. To Help in Coordination.

Though all managerial functions lead to coordination in the organization, real beginning is made at the level of planning stage. Well considered overall plans unify interdepartmental activities and consequently restrict the area of freedom in the development of purely departmental plans. Thus, various departments work in accordance with the overall plan, and harmony is achieved. It is true to say that coordination is essence of management and planning is the base

5. To Help in Control

Control involves the measurement of accomplishment of events against plans and the correction of deviations to assure the achievement of objectives as set by the plans. Thus, control is exercised in the context of planning action as standards against which actual results are to be compared are set up through planning. At the control stage, an attempt is made to monitor the performance on continuous basis so that immediate action is taken if anything goes wrong.

6. To Increase Organizational Effectiveness

Planning ensures organizational effectiveness in several ways. The concept of effectiveness is that the organization is able to achieve its objectives within the given resources. Thus, for effectiveness, it is not only necessary that resources are gut to the best of their efficiency but also that they are put in a way which ensures their maximum contribution to organizational objectives. In fact, taking appropriate planning can do this. Planning states the objectives of the organization in the context of given resources. Therefore, each resource of the organization has a specific use at a particular time. Thus, planning along with control ensures that resources are put in action in a way in which these have been specified. If this is done, organization will achieve effectiveness.

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