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Importance of planning

Planning help an organization to setup a process, develop strategies to achieve its goal. In the management world planning helps to keep focus on the project's development and increase productivity. 

The main importance/significance of planning is listed as follows:

1) Planning facilitates Decision making: - Decision making means the process of taking decision. Under it, a variety of alternatives are discovered and the best alternative is chosen. But it is important to determine the objectives before the discovery of alternatives. Objectives are determined under the process of planning. So. it can be said that planning facilitates decision making.



2) Planning helps in Increase efficiency: - Planning makes optimum utilization of all available resources. It helps to reduce wastage of important resources and avoids their duplication. It aims to give highest returns at the lowest possible cost. Planning thus increases the overall efficiency.



3) Planning reduce risk of Uncertainty: - planning is always done for future and future is uncertain. With the help of planning possible changes in future are anticipated and various activities are planned in the best possible way.



4) Planning reduces overlapping and wasteful activities: - Under planning, future activities are planned in order to achieve objectives. The problems of when, where, what and almost decided. This puts an end to disorder. In such situation coordination is established among different activities and departments. It puts an end to overlapping and wasteful activities.

5) Planning provides Direction: - Under the process of planning the objectives of the organization are defined in simple and clear words. The outcome of this is that all the employee’s important role in the attainment of the objectives of the organization. 



6) Planning establishes Standards for controlling: - By determining the objectives the objectives of the organisation the actual performance of an employee is compared with the plans, and deviations (if any) are found out and corrected.


                                                                                                           
                                                                                                                                    Credit:-NCERT, Others

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