Topic 2- Importance of planning

 

1. Increase efficiency-

• Optimum utilization of all available resources

• Aims to give the highest returns at the lowest possible cost.

2. Reduces business related risk-

• Forecasting and prepare for future uncertainities

3. Facilitates proper coordination-

• Short term plan

• Medium Term plan

• Long Term plan

4. Aids in organising-

• Bring together all available resources

5. Gives right direction- 

• Give proper information, accurate instructions and useful guidance to the subordinates. What, How, When

6. Keeps good control-

• Actual performace of an employee is compared with the plans.

7. Helps to achieve objectives-

• Avoid doing some random activities

8. Motivates the personnel

• Good plan provides various financial and non financial incentives to both managers and employees

9. Encourages creativity and innovation

• Provides satisfaction to the managers 

10. Helps in decision making  

• Its facilitated by planning from the selection of best suited plans.