Importance or advantages of planning:
1. Planning provides direction: It provides direction for action by stating in advance how a work is to be done. It ensures that the goals and objectives are clearly stated so that the workers are aware of what they must do to achieve the goals.
2. Planning reduces the risk of uncertainty: A business organization has to work in an environment which is uncertain and ever changing. Planning helps to assess the future uncertainties and helps the organizations to face it.
3. Planning reduces wastages: Planning serves as the basis for coordinating the activities . and the efforts of the different individuals and departments of the organization. It helps to detect the inefficiency and to take corrective measures to minimize the wasteful activities. 4. Planning provides innovative ideas: Planning is basically the thinking function of management. It encourages the managers for innovative creative thinking. Many ideas come to the minds of the managers when they are planning.
5. Planning facilitates decision making: Decision making is a process of selecting the best course of action from various available alternatives after evaluating each one of them. Planning provides guidelines for evaluation of the alternatives in taking rational decisions.
6. Planning establishes standards for controlling: Planning helps in controlling. It determines goals and standards for every individuals and departments of the organization and makes it easy to compare the actual performance of the individuals and departments with the standards fixed.
