Question

State two advantages of planning.

Explain briefly the benefits of planning to an organisation.

Answer 1

Two advantages of planning are as follows:

1. Planning helps to improve efficiency of operations.
2. Planning focuses attention on the desired objectives.

Answer 2

The major benefits of planning are given below:

1. Planning provides direction: Planning establishes specific objectives that operate as a roadmap for future actions. Planning gives direction by outlining the tasks to be done in advance.
2. Planning reduces the risks of uncertainty: Managers can look forward and anticipate changes with the help of planning. It demonstrates how to handle alterations and unforeseen circumstances. It is possible to foresee changes and create suitable reactions to them.
3. Planning reduces overlapping and wasteful activities: Planning guarantees that ideas and actions are clear, so work proceeds uninterrupted. Redundant and useless operations are reduced or stopped. Inefficiencies are simpler to find and eliminate. Misunderstandings and confusion are prevented.
4. Planning promotes innovation: Coming up with new ideas is aided by planning. Innovative concepts drive corporate expansion and success.
5. Planning facilitates decision-making: Making a plan is useful when choosing between different options. It entails establishing goals and forecasting future circumstances. As a result, it facilitates logical decision-making.
6. Planning establishes standards for controlling: The objectives or benchmarks that actual performance is evaluated against are provided by planning. By comparing standards with actual performance, managers can determine whether any corrective action is necessary. Thus, the foundation of control is provided by planning.