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Why Planning Is Important For An Organisation ?

Hello, buddies how are you all? my previous topic was Essentials Of A Good Plan For An Organisation. And today I am back with the topic Why Planning Is Important For An Organisation ? This is very interesting topic please read it till the end. An organization which has no plan is like ship without rudder. If we don’t make plans in advance, decisions are taken haphazardly on hit or miss basis which results into wastage of human and material resources. An organisation without planning operates aimlessly. Planing today avoids crisis tomorrow. So here are the reasons Why Planning Is Important For An Organisation ?

Why Planning Is Important For An Organisation ?

Why Planning Is Important For An Organisation ?

  • Achievement of objectives – As planning gives guidelines for all the activities in an organization. These guidelines helps to achieves the objectives of the organisation without any problem. Good management is Management By Objectives. The manager has to focus his attention on the achievement of objectives by the planning function.


  • Planning avoid haphazard action – Aimless activities are avoided by planning. It also avoids hit or miss action or random decision. Confusion and chaos occur if we don’t plan. If we made plan in advance, it helps everyone because everyone knows what is to be done for the achievement of goals of the organisation.


  • Planning avoids uncertainties – Planning is concerned with the future which is uncertain and very difficult to predict. Planning will minimize the risk and insecurity. To keep strict control on future events planning is must.


  • Planning brings economy in operations – Purposeful and orderly activities are only lead by planning. The available resources are used at its fullest only by proper planning. At a minimum possible time all the activities are done. All types of wastage are eliminated in all the departments which results in the efficient and economical operation of the organisation. The cost of operation is also minimized.

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Why Planning Is Important For An Organisation ?


  • Planning provides basis for control – The targets and goals which has to be achieved by the organisation is specified by planning. Planning and control are interrelated to each other because control is possible only when planning is done. The control function is depend on the effective planning. The technique of budgetary control is applied to keep control over costs.


  • Planning and technological development – An organization can survive in the market only if it uses latest technology. The old and obsolete machines are replaced by the new machines which led to technological development of the organization. This process is forseen by the management and also taken under planning. Like computers and computerised machines are replaced the old machines rapidly throughout the world.


  • Planning help in proper utilization of resources – The resources of an organisation can be used effectively only by proper planning. It encourage the employees to come forward with difficulties faced by them for the achievement of the targets. Thus, worker discuss their problems with the management and a sense of involvement is felt by everyone in the organization. It create a team spirit. They also suggest better methods of work and ways and means reduce the wastage. In this way the available resources are properly utilised.

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