What is a Importance of Planning

Planning has gained an essential place in the field of business management. Because now-a-days every organization use to make plan for doing various activities in the most appropriate manner. In fact in the absence of planning any organization cannot able to attain its primary objectives in the best and cheapest way. on the whole it is clear that planning is one of the most important part & parcel of business organization.

The importance of planning can be described as below:

• Planning reduces uncertainty of future events: Planning plays an important role in the reduction of future uncertainty of an event. It is matter of fact that future is uncertain and risk-oriented. What will occur tomorrow we cannot say with certainty but we can forecast about future events through planning. Hence, to avoid these future uncertainty and risk every organization has to make plan. Thus we can say that planning reduces uncertainty of future events.

• Planning makes objectives clear and specific: Planning provides a huge guidance to an organization by making its objectives more clear and specific. As we know that in organization all the events or activities are done by the personnel with view to achieve primary objectives of organization, hence if the objectives of organization is not clearly defined then as a result the personnel cannot able to do their assigned tasks in proper way. Hence, we can say planning makes objectives clear and specific. 

• Planning brings economy in operations: Planning provides a proper guidance to an organization by bringing economy in all around operations of organization. It is matter of fact that every organization has done its works on the basis of adopting plan so that organization cannot face any difficulties in course of executing the whole operations and as a result the cost of operations will be reduced. Thus it is clear that planning brings economy in operations of organization.

• Planning provides the basis of control: Planning provides the basis of control to an organization. In fact in the absence of planning any organization cannot able to make its controlling process. Because we know in controlling process every action are performed or decisions are taken by keeping in view to plan of organization. In the absence of planning organization cannot able to keep on its controlling process for a long while. On the whole it is clear that planning is the basis of controlling process.

• Planning establishes unity & co-ordination: Planning plays a significant role in the establishment of unity & co-ordination among st various resources. Either it may be like man, material, money & all other resources. It provides the proper information to an organization how to integrate all the resources by the proper utilization of man power towards the achievements of primary goals of organization. Therefore, planning establishes unity & co-ordination among st resources.

• Planning takes optimum utilization of available resources: Planning plays an essential role to take optimum utilization of available resources. In fact, it integrates the whole available resources in such a manner, so that the personnel cannot face any problems in course of getting optimum benefits from available resources. Hence, we can say that planning helps to take optimum utilization of available resources.  

• Planning helps to control hasty decisions: Planning provides a great scope for controlling hasty decisions which is often taken by organization without making up the mind. It is matter of fact that planning provides a large number of alternatives to an organization to perform various activities in the best & cheapest way. Hence, if organization will select the best alternative courses & perform activities accordingly then organization can easily control hasty decisions.                               

• For development of organization: Planning plays a vital in the development of organization. Because it is matter of fact that in organization all the events are done according to planning, hence if the planning of organization will sound then organization can smoothly obtain its goals. As a result organization will be developed by leaps & bounds; on the other hand if the planning of Organisation will not sound then organization cannot obtain its goals easily & as a result organization will not be developed properly. Thus, it is clear that planning helps in the development of organization.