Why is Planning Essential in an Organization? Give Reasons

Planning Essential in Organization

Following Points Highlight the Importance of Planning:

  • Planning Essential in Organization Clear, Specific and Achievable Objectives planning ensures effective implementation of plans and direction of efforts. Very often the goals and objective are not specific. As a result, the actual activities undertaken deviate from the desired path leading to wastage of effort and inefficiency. Before plans are drawn, it is essential that objectives or goals to be achieved must be clearly defined. The planning exercise makes the goals clear and specific because it begins with the determination of objectives and thus, it helps in achievement of the organizational objectives.
  • Meaningful Activities In the process of planning, actions become meaningful in the sense that employees and managers know how their activities relate to organizational goals. The main concern of their own activities is in relation to other activities. Everyone is conscious of his own assistance towards the achievement of organizational goals. This acts as a motivating force, encouraging the employees to work harder.
  • Reduced Risks of Uncertainty with proper planning, managers makes provisions for such uncertainties that help to reduce the risk of uncertainties. This includes peeping in to the future to predict uncertainties.
  • Ensures Coordination and Cooperation Planning helps in coordination of the carious activities, department and groups. Plans are laid down in advance that what should be done, by whom and when. Planned programmed of activity serve as the basis of harmonizing the efforts of different divisions, department to motivate the individual to achieve common objectives or goals. Planning provides well-defined objective, unity of direction, well-published policies, procedures and programs. All these help to get full cooperation and coordination, which consequently avoids duplication of work and interdepartmental conflicts.

Planning Essential in Organization

  • Facilitates Decision-making planning essentially involves identifying the various alternative course of action, evaluating them and selecting the vest alternative. Planning facilitates this process. Without planning, decisions may lead to undesirable results and will direct activities towards uncertain goals.
  • Promotes Creativity A creative thinking and innovation of new methods of operation, besides developing new ideas leading to growth and prosperity of the business. In the process of planning, managers have the opportunities of suggesting ways and means of improving their performance and achieving higher targets. There is a challenge before management not only to solve future problems but also to take maximum advantage of favorable conditions.
  • Basis of Control in absence of planning there can be no control because evaluation of performance against predetermined goals is the basis of control. Planning provides the standards against which actual achievement is compared. Deviations of actual results from the standards indicate the basis of control with the standard performance. (Planning Essential in Organization)
  • Planning Leads to Economy and Efficiency Plans and programmers show precisely how various tasks are to be utilized for the purpose. Availability of advance information in such matters, leads to economy.
  • Ensures Better Utilization of Resources Planning decides that to produce and how to produce. Because of which there is the possibility of utilizing the resources effectively.     
  • Motivates Employees A good plan encourages the employees of an organization and gives them a sense of effective participation. Planning make clear the employees as to what the organization want to achieve and motivates the employees to help the organization in achieving it.
  • Develops Rationality among Management Executives management executives put their thoughts in blue print form. Disciplined thinking of management executive is geared up through formal planning. In this way, planning brings rational thinking and approach among management executives.
  •  Prevents Hasty judgment Planning Essential in Organization We can analyze a problem through a plan and consider the alternatives, before taking a sound decision. It is possible to plan in advance so as to what will dine and how it will be done. This process avoids hasty judgment. 
  • Promote Growth and Improvement Planning sets a standard to control purpose. Useless and aimless activities are avoided. Planning helps in the growth and improvement of an individual and the organization.
  • Enhances Competitive Strength Competitive strength is enhanced with a new line of products, changes in quality and size of the product, expansion of plant capacity and changes in methods of work. This is because planning helps employees to avoid needless efforts and reduce wastage. What is to be done, and when are specified in the plans. Hence, there is no scope for using trial and error methods. This also leads to efficiency of operation s. eventually; the improved competitive strength is obtained through planning and purposeful motives.      
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