Answer the following Questions: What do you understand by the term “Planning” and give its importance?

Answer the following Questions:

What do you understand by the term “Planning” and give its importance?

ANSWER:

Planning can be defined as a process of setting goals and objectives for a given period of time, evaluating alternatives for the course of action and deciding an appropriate action from various alternatives.

The importance of planning can be explained through the following points:

i. Renders direction - Planning clearly states the goals and objectives to be achieved. Thus, it acts as a guide for the actions to be taken. Further, it guides the managers on things to be done, routes to taken and objectives to be achieved. It ensures that the path taken for the accomplishment of goals is righteously chosen.

ii. Subdues risks - By guiding the organisation in the right direction, it accredits its managers to analyse and anticipate changes. This leads to a reduction in the uncertainty of foreseen events. Planning shows how to deal with situations that may arise in the due course of management, though it does not fully eliminate the problems.

iii. Minimises overlapping - As the managers are well comprehended on the policies and plans of the organisation, they can coordinate the activities together to fulfil the objectives. Thus, overlapping of work is reduced. Also, any wastage of resources that may take place due to repetitiveness is reduced.

iv. Encourages creativity - Planning includes formulation of policies and plans requiring innovation. It is a crucial activity that demands the best of managers with apt thinking and creativity. It calls out for new ideas by the management to attain the goals.

v. Helps in decision making - Planning serves as the basis for decision making. It involves steps like analysing the future, evaluating various courses of action and choosing the best alternative as per the objective. Thus, a proper planning process helps managers in taking rational decisions.

vi. Essential for controlling - Planning states the objectives that are to be achieved. Thus, it sets the standards on which the overall performance is to be evaluated. It also helps in determining whether there is any deviation from the said objectives. This further helps in taking corrective measures if required.

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