Define ‘Planning’. State any four points of importance of planning.
Greetings to all the aspiring business leaders and scholars! Welcome to the dynamic realm of business studies, where the intricacies of commerce and strategy converge. As you embark on this educational journey, you’ll gain insights into the world of entrepreneurship, management, economics, and innovation. The business landscape thrives on diverse perspectives, and each of you brings a unique lens to understanding how organizations thrive and economies evolve. Get ready to explore case studies, analyze market trends, and cultivate the skills necessary to navigate the ever-changing business environment. Your dedication to mastering these concepts will undoubtedly pave the way for future success and innovation. So, seize this opportunity to learn, grow, and contribute to the world of commerce in meaningful ways.
And now we give you the correct answer:
Planing is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal.
Importance of Planning:
- Increases efficiency: Planning makes optimum utilization of all available resources. It helps to reduce wastage of valuable resources and avoids their duplication. It aims to give the highest returns at the lowest possible cost. It thus increases the overall efficiency.
- Reduces business-related risks: There are many risks involved in any modern business. Planning helps to forecast these business-related risks. It also helps to take the necessary precautions to avoid these risks and prepare for future uncertainties in advance. Thus, it reduces business risks.
- Facilitates proper coordination: Often, the plans of all departments 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.
- Aids in Organizing: Organizing means to bring together all available resources, i.e. 6 Ms. Organizing is not possible without planning. It is so, since, planning tells us the amount of resources required and when are they needed. It means that planning aids in organizing in an efficient way.