1.ESSENTIAL FOR MODERN BUSINESS<\/strong><\/p>\n\n\n\n Planning is thinking before doing function. In present\ntimes, business houses are facing various complexities or changes in the\ntastes, fashions, markets, trends in consumption, modification in the laws, new\nchallenges, new opportunities, changes in technological environment, new\nchallenges emerging from corporate social responsibility. All this necessitates\nthe formulation of plans to meet the rapid changes of the business environment.\nSo to achieve the heights of success and to capture the largest market share,\nplanning is essential for the business.<\/p>\n\n\n\n 2.FOCUS ON OBJECTIVES<\/strong><\/p>\n\n\n\n An action without direction is meaningless. So to provide\nthe direction to the employees, various targets or objectives or goals are set.\nPlanning helps in setting up the objectives. The objectives set should be\nconcrete and tangible. Planning is a function that helps to channelize the\nefforts of the employees of the concern towards a direction by providing them\nthe objectives to be achieved. It does\nnot allow the management to be deviated from the action to do.<\/p>\n\n\n\n 3.PROPER ALLOCATION OF RESOURCES<\/strong><\/p>\n\n\n\n Resources are always scarce. Planning aims at optimum\nallocation of resources to the whole concern to avoid wastages and attain\neconomy. To ensure this, the suggestions, requirements and opinions of all the\ndepartments are invited and then proper plans are made.<\/p>\n\n\n\n 4.FACILITATES CONTROL<\/strong><\/p>\n\n\n\n Planning and controlling are inter-related. These two\nfunctions are inter-dependent also. Planning set the targets which provide the\nbase for controlling the activities of the concern. While devising the control,\nthe deviations are found out which are considered while formulating future\nplans. So it can be rightly said that planning and controlling are\nindispensable.<\/p>\n\n\n\n 5.HELPFUL IN DECISION MAKING<\/strong><\/p>\n\n\n\n Planning involves setting up of objectives and budgets,\nlaying down policies, strategies and programmes, formulating plans and\nprocedures. All this acts as guidelines in day to day decision making. The\nwhole process of planning is a process of decision making.<\/p>\n\n\n\n 6.AVOID BUSINESS FAILURES<\/strong><\/p>\n\n\n\n Business failures arise due to wrong and unscientific\nplanning. A bad planning may result into wastage of human and physical\nresources. Good planning is always based on previous experience and realistic\nassumptions, facts and figures. All this helps in avoiding the business\nfailures.<\/p>\n\n\n\n 7.INSTRUMENT TO IMPROVE PERFORMANCE<\/strong><\/p>\n\n\n\n Planning helps in setting goals for each function and for\neach employee. The concerns having formal planning have performed as compared\nto those where planning is not taken up as a regular activity. The variables\nfor assessing performance may be return on investment, sales target, earnings\nper share etc. studies have proved that planning has been an instrument in\nimproved performance.<\/p>\n\n\n\n 8.REDUCE COMPETITION<\/strong><\/p>\n\n\n\n The existence of competition enables the enterprise to get\nchance for growth. At the same time, stiff competition should be avoided. It is\npossible to reduce competition through planning.<\/p>\n\n\n\n 9.BRINGS COOPERATION AND COORDINATION<\/strong><\/p>\n\n\n\n Planning can bring cooperation and coordination among\nvarious sections of the organization. The rivalries and conflicts among\ndepartments could be avoided through planning. Besides, planning aavoids\nduplication of work.<\/p>\n\n\n\n 10.TO MINIMIZE RISK AND UNCERTAINTY<\/strong><\/p>\n\n\n\n Business environment keeps on changing. The changes are tangible or intangible in nature. Tangible changes are changes in technology, market forces, governmental regulations etc. Intangible changes are changes in attitudes, values, culture etc. Because of these diverse changes, organizations are required to work in a more prepared manner and look ahead for their future course of action which is basically determined by the planning process. Planning does not aim at stopping these environmental changes but prepares the organization in more scientific and realistic manner to minimize the risks and uncertainty arising out of them.<\/p>\n\n\n\n
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