State any three points of importance of planning function of management.
State any three points of importance of planning.
State any three features of planning function of management
State any five features of 'Planning'.
State any three features of planning.
Importance of planning function of management
1) Focus on objectives: Planning starts when an objective is set and a proper planning gives the boost to a well-organised and goal-oriented management. Plans ensure that the desired objective is attained economically and quickly, if possible. The managers must make sure that the plans made are purposeful, specific, realistic and clear and should adhere to the company’s strategies, procedures and policies. For example, if sales target is to be achieved then the plans must be made in sync with this objective.
2) Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, directing and controlling. Planning, thus, serves as the stepping stone for all other functions of an organisation. The rest of the functions are conducted within the framework of the plans drawn i.e. the other functions are interrelated and interdependent on planning. Thus, planning acts as the primary function for all the organisations.
3) Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, directing and controlling. Planning, thus, serves as the stepping stone for all other functions of an organisation. The rest of the functions are conducted within the framework of the plans drawn i.e. the other functions are interrelated and interdependent on planning. Thus, planning acts as the primary function for all the organisations.
4) Pervasiveness: Planning must be done at all levels of the management and in all departments of the organisation. However, its scope differs along the various dimensions of business levels. For example, the top-level managers have to chalk out the policies regarding the overall management, and whereas the middle-level managers plan out the authority to be assigned to the subordinates or departmental planning. On the other hand, the lower level managers have to perform day-to-day operational planning and make out small targets.
5) Renders direction: Planning clearly states the predetermined course of action; guides managers regarding things to be done, what route to take and how objectives are to be achieved and provides direction for the actions of different departments of the organisation. Planning also ensures that various departments of the organisation work in a coordinated manner towards the achievement of the desired objectives.
6) Subdued risk of uncertainties: One of the main agendas of planning is to predict or anticipate any future risk or unfortunate events which can cause major damage to a business. Plans are made to overcome such uncertainties. Such uncertainties are met by keeping aside some resources. Planning shows how to deal with situations which may arise in the due course of management though it does not fully eliminate problems.
7) Minimised overlapping: Departmental and organisational plans are made keeping in mind the requirements of the departments. Thus, managers are well comprehended with the policies and plans of the organisation resulting in the integration of activities. Through minimisation and elimination of useless resources and redundant activities, overlapping of the work is reduced and any wastage of resources which occurs because of repetition is reduced. Proper planning ensures that there is no confusion and misunderstanding and the work proceeds smoothly.
8) Choice Making: Planning is a process of making choices among the different alternatives for the attainment of the desired objectives. These alternatives are based on the path to be taken, strategies or policies to achieve the goals etc. Managers need to evaluate these choices thoroughly and then select the most rational scheme to achieve the set objectives
9) Encourages creativity: Through better procedures, ideas and methods, planning serves as the stepping stone to an organisation’s success and can be termed an intellectual process. Planning includes formulating policies and plans which require innovation. It is a crucial activity which demands the best of managers’ thinking capabilities and creativity.
10) Essential for controlling: Planning sets the standards against which performance is evaluated, i.e. a comparison between the planned and the actual output. If deviated from the said objectives, the corrective measures are implemented at the earliest.