Question

In an annual general meeting a company sets its targets for the year. The manufacturing department has decided to monitor and control the performance of the company so as to achieve the target of manufacturing 2.5 million units of the product. The survey done by the company has shown a number of cities in the north are showing increased demand for the product. In the above case identify the importance of planning:

Options

• Planning establishes standards for controlling

• Planning facilitates decision making

• Planning reduces the risk of uncertainty

• Planning provides direction

Answer 1

Planning establishes standards for controlling

Explanation:

In the scenario:

• The company sets a target of manufacturing 2.5 million units.
• The manufacturing department will monitor and control performance to achieve this target.

This clearly aligns with the planning importance of establishing standards for controlling, where set goals or targets serve as benchmarks against which actual performance can be measured and corrective actions can be taken if needed.