Question

Write Short Notes on the following:

Importance of Planning.

Answer 1

The importance of planning can be explained through the following points:

i. Renders direction - Planning clearly states the goals and objectives to be achieved and guides the managers on what is to be done and how it is to be done.

ii. Helps in decision making - By appropriately analysing the future events and identifying and evaluating various courses of action, planning helps in taking rational decisions.

iii. Essential for controlling - By clearly stating the objectives that are to be achieved, planning sets the standards against which the overall performance is to be evaluated, thereby helping in effective controlling.

iv. Promotes innovation - Formulation of plans and policies is an intellectual process that requires creativity and innovation on part of managers.