Management Notes

Reference Notes for Management

Advantages of Planning – Concept of Planning | Principles of Management

Advantages of Planning

Focuses Attention on Objectives 

Planning is a process that focuses attention on enterprise objectives, since all planning is directed toward achieving these objectives. Setting up objectives is one of the first steps in planning. When the objectives are clearly outlined, the plans will also be directed towards achieving these objectives.

Ensures Economical Operation 

An important part of planning involves mental exercises that are geared towards achieving efficient operation within the enterprise. This technique replaces uncoordinated piecemeal effort with joint directed effort, equal flow of work with uneven flow, and deliberate decision-making with snap judgment. As a result, resources are better utilized, and costs are reduced.

Decreases Uncertainty 

The whole point of planning is to reduce future uncertainty, since it entails anticipating future events. Effective planning relies on deliberate thinking grounded in facts and figures. Forecasting is also involved. During the planning process, a business manager can foresee various uncertainties that can arise from events such as technological advancements, changes in taste and fashion of the people, etc. Appropriate provisions are made in the plans to account for these uncertainties.

Facilitates Control 

Management plans help them perform their control functions. Keeping activities on track by resolving deviations from plans, planning and control are inseparable in the sense that unplanned actions cannot be controlled. Providing standards of control is a function of planning. The controls function is managed by establishing objectives and standards of performance.

Encourages Innovation and Creativity 

The deciding function of management is planning. When a manager plans, many new ideas enter his mind. This helps the manager think innovatively and creatively. This creates a forward-thinking attitude among managers.

Improves Motivation 

It is important to ensure that all managers are involved in the planning process, as this increases their motivation. The workers are also motivated to work harder since they know what is expected of them. Planning can also help future managers get prepared for their jobs.

Improves Competitive Strength

Planning effectively gives the enterprise a competitive advantage over its competitors who don’t plan or plan ineffectively. Planning may include expansion of capacity, changes in work methods, changes in quality, anticipating the tastes and fashions of people, and technological advancements.

Achieves Better Coordination

Organizational planning ensures unity of direction towards achieving organizational goals. The activities are all directed towards achieving common goals. All departments join forces to achieve common goals. This will also help avoid duplication of effort. Consequently, the organization will be more coordinated.

Try Quiz

Which organizations should be involved in commmunications planning?

Which organizations should be involved in commmunications planning?

A) Planning Section
B) Area Command
C) All Stakeholders
D) MAC Groups

The Correct Answer for the given Question is Option C) All Stakeholders

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