In business management, planning is conscious of selecting and developing the best course of action to accomplish an objective. It is the base from which future management actions spring. its Importance is very huge in business.
Importance of Planning in Business Management
Following are the Importance of planning in business management:
1. Provides a Sense of Direction
Without planning, managers would fail to take proper decisions, and hence there would be chaos, not activity in the organization.
Planning directs decision making and efforts on a guided Patli leading to the desired destination, the predetermined objectives.
It indicates the proper channels for use of company’s resources and facilities.
By providing a Framework for what occurs in the organization planning makes the work meaningful and the activities orderly.
2. Balance Future Uncertainty and Change
Uncertain and risk are inevitably associated with business and its operations.
Though planning cannot eliminate these two elements, it can very well take care of them.
Plans, due to their flexible nature, help the company to better cope with the uncertainty and risk because they provide a better understanding of likely future events and changes especially in the form of opportunities and threats.
Hence, the managers are able to shape the future of the company or guidelines lines.
3. Focuses Attention on Objectives and Results
Organizations exist because people have common objectives.
Managers are in charge of organizations for the purpose of attending results.
If attention is not focused on objectives and Results, even the survival of organizations may be endangered, planning Facilities Management by objectives (MBO) because plans set objectives and results to be achieved within a specified time frame.
4. Causes Efficient Operations
Planning makes things to occur, improves the competitive strength of the organization, guides proper utilization channels for resources and facilities, integrate resources and efforts, aligns internal and external environment, and establishes coordination among sectional or departmental activities.
All this minimizes costs and wastes and results in the efficiency of the company.
5. Facilities Control
Planning produces plans, objectives, and Results to be achieved within a specified time friend.
They serve as standards for evolution and control purposes. Actions and efforts are supervised and controlled against the plans etc.
As yardsticks and guiding posts.
Thus, planning makes control effective and purposeful.
6. Provides Basis for Decentralization
Decentralization of authority signifies the dispersal of decision making power to the lower level in the organization.
Where designed plans serve as guides to subordinates and reduce the risk involved in the delegation of authority.
Besides, they serve as a source of motivation for subordinates who may then accept delegation of authority.
7. Guides Rational Decision Making
Decisions are primarily future-oriented. Plans cover the future.
Hence, managers would be inclined to make current decisions consistent with these plans.
It means without plans there is no sound basis for making future-oriented decisions.
Sound plans prevent Hasty judgments haphazard actions, and trial and error method in making choices.
They provide die needed Framework for rational decision making.
8. Encourage Innovation and Creativity
Good planning provides avenues for improvements, growth, and development.
Its facilities expansion and diversification of organizational activities.
Employees under such a planning system are encouraged to take initiative for doing new things or doing things in a new way.
9. Clarity in Working Relationship
Organizing clarifies the working relations among employees. It specifies who is the report whom.
Therefore, communication becomes effective. It also helps in fixing accountability.
Thus, now you know the Importance of planning in business management.