Planning helps the management to determine the goals and objective of the enterprise and ways of achieving the goals in the most effective manner.It ensures proper utilization of human resources.Without proper planning the activity of any enterprise are most likely to be haphazard.
As Billy E. Goetz has rightly remarked that "without plans, action will become merely random activity, producing anything but chaos.Thus planning is very essential to achieve consistent and coordinated structure of operation focused on desired goals/objectives.
1.Focuses on Goals:
All planning process is directed towards achieving organizational goals.The planning function brings the manager's attention to focus on the formulation of objective in clear-cut terms.
2.Offsets Uncertainty and Changes:
Planning means looking forward.It helps the organization to overcome potential danger and overcome the adverse effect to a large extent.
3.Economic in Operation:
planning avoids the concept of 'trial and error' or 'hit and miss' or random activities.It selects a course of action which is beneficial from organizational point of view.
4.Avoids Business Failure:
The basic motive of planning is to overcome the probability of business failure.The primary task of planning is to select a best course of action among many alternative.It helps reduce business uncertainty, better coordination, among all the member of the organization, unity of action and so on.Thus planning is the key to business success.
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