Planning provides a systematic and smooth path for business activity which helps the business to achieve its goals and it includes what to do, why to do, when to do, how to do, who will do etc. for future activities.
Achieving goals without planning for future activity is much more difficult because achieving goals is not an easy process, it takes a lot of time and hard work. To make it easier to achieve goals, proper planning is required. Big businesses create separate departments for planning in which highly qualified people are appointed.
Table of Contents
Importance of Planning
Following are the importance of planning:
1. For Direction:
Planning helps in future activity because it provides direction to the future activity. Planning determines what to do, why to do, when to do, how to do, and who will do, etc. in a future activity. Business activity is carried out according to the plan.
2. For Decision Making:
Planning plays an important role in decision-making because planning is made through present and past data for future actions. Management takes decisions according to planning because to achieve the goals mere planning is not enough, implementation of planning is also necessary.
3. To Reduce Uncertainty:
Business is completely surrounded by uncertain events, that is why anything can happen in business at any time, it can be due to internal and external reasons. Planning helps in reducing uncertain events as it provides pathways for business activities.
4. To Achieve the Goal:
Achieving goals is the primary objective of every business because every business is formed to achieve goals. Planning helps in achieving the goal of business as it provides a systematic and smooth path to the business.
5. For Effective Control:
Controlling is another fundamental function of management, and it is an important part of the execution of planning. Business activity is controlled according to planning because planning describes what to do, why to do, when to do, how to do, and who will do, etc.
6. To Reduce Wastage:
Planning helps in reducing the wastage of business resources because planning provides a systematic way of using the resources of the business.
Resources are the lifeline of business because without resources business cannot be run hence proper utilization of resources is very important.
Read Also:
QNA/FAQ
Q1. Does planning help in decision making?
Ans: Yes, Planning plays an important role in decision-making because planning is made through present and past data for future actions.
Q2. Is planning important for the direction of business activities?
Ans: Yes, planning is important for the direction of business activities because planning determines what to do, why to do, when to do, how to do, and who will do, etc. in a future activity of the business.
Q3. Does planning help in reducing uncertainty?
Ans: Yes, planning helps to reduce uncertainty as it provides a path for business activities.
Q4. Does planning help in reducing wastage of resources?
Ans: Yes, Planning helps in reducing the wastage of resources because planning provides a systematic way of using the resources of the business.
Q5. Write the importance of planning.
Ans: Following are the importance of planning:
1. For Direction
2. For Decision Making
3. To Reduce Uncertainty
4. To Achieve the Goal
5. For Effective Control
6. To Reduce Wastage
