PLANNING: Importance of Planning Part - I

PLANNING: Importance of Planning  Part - I

Success of any business or industrial unit depends upon the time and experience invested during the formulation of its planning. Planning is very important for an organization irrespective of its field, scale of operation and geographical location. 

All objectives are achievable only after an effective and efficient planning. It is only, this planning which decides the procedures and describes the general rules for the activities for achievement of defined goals.

It is planning, which compares the time based actual result with the pre decided, checks the deviation or accuracy during the operation of whole process. This analysis shows the performance standards of the organization.

Planning being the primary function has following below given importance:-

  

Planning Offsets Future Uncertainties:

Many different types of future uncertainties are common in business or industrial unit. To over-come these future uncertainties, we need a methodical and systematic planning. Future forecasting is done on the basis of, assumptions, past experiences and systematic studies of present internal & external conditions.

Plans are devised to overcome future uncertainties. Planning is made according to the analysis and judgments of prevailing conditions. On the basis of planning we minimize the future uncertainties, and proceed ahead to achieve the objectives. But in the process certain resources are kept aside to meet these future uncertainties.

Planning Clarifies & Develops Attention on Objectives:

Planning clearly explains an organizational objective, which in turn supports drafting of effective plans for achievement of these objectives. Uncertain and ambiguous objectives will derail the whole organization so for proper contribution towards the achievement, systematically explained clear objectives is very necessary.

Planning helps all manpower & management to follow in systematic way and ultimately achieve the end results or goals.

Planning Coordinates Action & Reduces Wasteful Activities:

An organization has multiple departments. It is planning that mostly coordinates and integrates the activities in departments. Planning avoids any type of disagreement in these departments.

All organizational plans are devised as per the requirements of the departments and coincide with main goals. This creates harmonious coordination between different departments, where all manpower & management gives full effort to the plan for attainment of organizational objectives.

Planning Improves Organizational Efficiency:

Planning results in systematic & even running of a business or industrial unit. This is because a determined course and predetermined actions has been decided. This determined course and predetermined actions in the plan helps to stay away from confusion and waste of resource, which improves the efficiency and effectiveness of organization. 

Planning avoids delays, repetition of activities, minimizes wastage, and brings the cost down, this increase the overall performance & efficiency of organization. 

Planning also Increase Managerial Efficiency:

Planning helps managers to take directive action at right time in right direction for the successful achievement of objectives. Since most of the parameters are pre decided it becomes easy to focus towards the trouble free performance. This makes the managerial staff more effective, time bound and efficient.

So Planning not only improves the organizational efficiency but it also increases the managerial efficiency.

NOTE:

Few more points would be discussed on the topic “Importance of Planning” in the future Blog’s.