IMPORTANCE of Planning

^PLANNING

Concept Planning is deciding in advance what to do, how to do when to do, and who is to do it. Planning bridges the gap from where we are to where we want to go. It is one of the basic managerial functions. Planning involves setting objectives and developing appropriate courses of action to achieve these objectives. Thus, it is closely connected with creativity and innovation.

Importance  Of  Planning

1.  Planning Provides Directions :

By stating in advance how the work is to be done planning provides direction for action. If there was no planning, employees would be working in different directions and the organization would not be able to achieve its goals efficiently.

2.  Planning Reduces The Risk Of Uncertainty :

Planning is an activity which enables a manager to look ahead, anticipate change, consider the impact of change and develop appropriate responses.

3.  Planning Reduces Wasteful Activities :

Planning serves as the basis of coordinating the activities and efforts of different departments and indi- viduals whereby useless and redundant activities are mentioned.

4.  Planning Promotes Innovative Ideas :

Planning is the first function of management. Managers get the opportunity to develop new ideas and new ideas can take the shape of concrete plans.

5.  Planning Facilities Decision Making :

Under planning targets are laid most down. The manager has to evaluate each alternative and select the viable option.

6.  Planning Establishes Standards For Controlling :

Planning provides the standards against which the actual performance can be measured and evaluated. Control is blind without planning. Thus planning provides the basis for control.

Limitations of Planning

1.   Planning leads to rigidity :

Planning discourages individual's initiative & creativity. The managers do not make changes according to changing business environment. They stop taking or giving suggestions and new ideas. Thus detailed planning may create a rigid framework in the organization

2.   Planning may not work in dynamic environment :

Planning is based on anticipation of future happenings and since future is uncertain and dynamic therefore, the future anticipations are not always true.

3.   Planning Involves Huge Costs :

When plans are drawn up, huge cost is involved in their formulation.

4.   Planning is time consuming :

Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.

5.   Planning does not guarantee success :

The success of an enterprise is possible only when plans are properly drawn and implement. Sometimes managers depend on previously tried successful plans, but it is not always true that a plan which has worked before will work effectively again.

6.   Planning  Reduces  Creativity:

In planning, work is to be done as per pre-determined plans. It is decided in advance what is to be done, ho it is to be done and who is going to do it. Moreover planning is done by top management which leads to reduction of creativity of other levels of management.