IMPORTANT OF PLANNING Planning is a process of thinking before doing and the first managerial function to be performed. It is concerned with deciding in advance what is to be done in future, when, where, and by whom it is to be done. “ Without the activities determined by planning , there would be nothing to organize, no one to activate and no need to control.” Now let’s understand why planning is important for organization:
1. Increases efficiency: Planning helps to reduce wastage of valuable resources and avoids their duplication and hence it aims to give the highest returns at the lowest cost. It makes optimum utilization of all available resources.
2. Reduces business-related risks: There are many risks involved in any modern business …show more content…
Facilitates proper coordination: The plans of all department of an organization are well coordinated with each other. Similarly, the short-term, medium-term and long term plans of an organization are also coordinated with each other. Such proper coordination is possible only because of efficient planning.
4. Aids in Organizing: Organizing is not possible without planning. Planning tell us the amount of resources required and when are they needed. It means that planning aids in organizing in an efficient way.
5. Gives right direction: Direction means to give proper information, accurate instruction and useful guidance to the subordinates. It is impossible without planning because planning tell us what to do, how to do it and when to do it. Hence, planning helps to give a right direction.
6. Keeps good control: With control, the actual performance of an employee is compared with the plans, and deviations (if any) are found out and corrected. It is impossible to achieve such a control without right planning that’s why planning becomes necessary to keep a good control.
7. Helps to achieve objectives: Planning helps an organization to achieve their objectives or targets, but with some ease and promptness. Planning also helps an organization to avoid doing some random (done by chance) …show more content…
Usually made for a longer time period.
• Divisional or middle level plan: It is related to a particular department or division and lays down the objectives, policies and strategies of a department.
• Sectional or lower level plan: focused on laying down detail plans for the day to day guidance.
Focused Plan • Strategies plan: deciding the objectives and to decide the resources marshalling in order to realize the objectives. Done by the top management.
• Operational plan: ensuring efficient use of resources and to develop a control mechanism so as maximum efficiency is ensured.
• Tactical plan: made for short term moves. Required to meet the sudden changes in the environment forces.
Time Period Plan • Long range plan: for a period of five years at least. Involves capital budgeting, product planning, project planning etc. deals with a great uncertainly.
• Medium range plan: for one to five years. Relate to development of new products and markets, product publicity etc. supportive to long range
1. Increases efficiency: Planning helps to reduce wastage of valuable resources and avoids their duplication and hence it aims to give the highest returns at the lowest cost. It makes optimum utilization of all available resources.
2. Reduces business-related risks: There are many risks involved in any modern business …show more content…
Facilitates proper coordination: The plans of all department of an organization are well coordinated with each other. Similarly, the short-term, medium-term and long term plans of an organization are also coordinated with each other. Such proper coordination is possible only because of efficient planning.
4. Aids in Organizing: Organizing is not possible without planning. Planning tell us the amount of resources required and when are they needed. It means that planning aids in organizing in an efficient way.
5. Gives right direction: Direction means to give proper information, accurate instruction and useful guidance to the subordinates. It is impossible without planning because planning tell us what to do, how to do it and when to do it. Hence, planning helps to give a right direction.
6. Keeps good control: With control, the actual performance of an employee is compared with the plans, and deviations (if any) are found out and corrected. It is impossible to achieve such a control without right planning that’s why planning becomes necessary to keep a good control.
7. Helps to achieve objectives: Planning helps an organization to achieve their objectives or targets, but with some ease and promptness. Planning also helps an organization to avoid doing some random (done by chance) …show more content…
Usually made for a longer time period.
• Divisional or middle level plan: It is related to a particular department or division and lays down the objectives, policies and strategies of a department.
• Sectional or lower level plan: focused on laying down detail plans for the day to day guidance.
Focused Plan • Strategies plan: deciding the objectives and to decide the resources marshalling in order to realize the objectives. Done by the top management.
• Operational plan: ensuring efficient use of resources and to develop a control mechanism so as maximum efficiency is ensured.
• Tactical plan: made for short term moves. Required to meet the sudden changes in the environment forces.
Time Period Plan • Long range plan: for a period of five years at least. Involves capital budgeting, product planning, project planning etc. deals with a great uncertainly.
• Medium range plan: for one to five years. Relate to development of new products and markets, product publicity etc. supportive to long range