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Discuss the importance and limitations of planning?

Objectives to be attained in the future.

Predetermined curse of action.

Try to achieve better results.

Profit thinking & analysis of information

Study of alternative courses.

And Limitations:

Asked On2017-05-17 15:39:09 by:Nikhil-bharadwaj

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1)Objectives to be attained in the future.Â
2)Predetermined curse of action.

3)Try to achieve better results.

4)Profit thinking & analysis of information

5)Study of alternative courses.
Limitations of forecasts: because the information d
ata available are not reliable. It cases the
Rigidity: It restricts individual freedom, initiati
ve & desire for creativity because of
predetermined policies.
Time-consuming: IT takes time & hence delays action
. It make it realistic sufficient time should
be given to planning process.
Costly: It exercises lot of money for preparing est
imates, collecting information & facts for
Influence of external factor: Like natural calamiti
es, break-out of war, changes in political &
economic situations limits the effectiveness of pla
Limited scope: For organizations to change rapidly
planning is limited especially for those
engaged in publication of text books & fashionable
articles manufacturing industry.
People’s resistance: A new plan is simply not execu
ted because of unwillingness or inability of

Answerd on:2015-01-16 Answerd By:Nikhil-bharadwaj

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The following points clarify the importance of planning in the organization:

Goal Focus

Minimize Uncertainty

Improve efficiency

Facilitates to Control Innovation and Creativity Better Coordination

Ensures Commitment Aid to Business Success

Brings Systematization

i. Goal Focus: Planning helps to focus the attention of the managers and subordinates towards organizational objectives. It predetermines the objectives and defines line of action to complete the work. Management of any organization is formed to attain defined objectives. Thus, good management is the management by objectives. Planning facilitates to make management by objectives. It serves as the blue print of the course of action and eliminates the unnecessary and useless activities. It focuses to priorities and facilitates to take right decision at the right time. 

ii. Minimize uncertainties: Planning is one of the important tools to forecast and anticipate future uncertainties and risks. The management has to work in an environment which is uncertain and ever changing. The change in environment may occur due to economic, social, political and technological changes. Planning helps an enterprise to make study about future challenges and uncertainties which may arise in the future course of action. Thus, it helps management to face future which greater strength and confidence. The systematic and practical planning provides guidelines to the management to complete the work in efficient manner. 

iii. Improve efficiency: One of the parts of planning is to select a best course of action by evaluating many alternatives. While selecting a course of action, the benefit of the organization is taken into consideration. It also provides guidelines and procedures to complete the work. It also helps for the optimum utilization of resources, avoiding wasteful efforts and money and minimizing wastage. Besides, it also avoids the concept of trial and error or hit and misses and defines a clear line of action. The selection of best cause of action, definition of clear line of action ad optimum utilization of resources contribute to improve overall working efficiency of the organization. 

iv. Facilitates to control: Planning is the basis of control. It defines the minimum standard of work to be achieved and time to complete the job. It is helpful to compare the actual performance achieved with that of predetermined or standard fixed. The manager evaluates the actual achievement of work interval of time. This is helpful to identify the deviation, if any, between actual and planned performances. In case any deviation is there, the management can take necessary steps so that defined work can be completed in given time. Thus, planning makes control meaningful and effective.

v. Innovation and creativity: Planning encourages innovative thought and creative action among the managers. An effective planning encourages managers to think about new knowledge, idea, procedures, technique and strategy for the completion of work. It also helps to create new modified course of action. This is essential for the growth and expansion of working areas of the business. It contributes to motivate and develop moral among the employees. It is also helpful to maintain up-to-date position in business operation and face business complexity. Thus, planning is the base of management. The managers innovate and create new strategy to complete the predetermined work in this ever-changing environment.

VI Better Coordination : Planning plays an important role to facilitate better coordination among all the authorities and units of the organization. It clearly defines in advance what, when, and by whom the work should be done. For this purpose, it clarifies the authority and responsibility of each and every employee from top level of the organization. This is helpful to harmonize the relationship between all employees and develop feeling of team spirit or group work among them. In absence of proper planning of interrelated units, it is difficult to accomplish goal and there is possibility of wastage of resources. Thus, planning is the primary instrument to facilitate better coordination in the organization.

Vii Ensure Commitment : Planning ensures commitment of the management towards organizational goal. It set the feelings of responsibility of managers. It facilitates to convert individual goals to organizational objectives. It clearly defines authority and responsibility of each and every authority. No one can avoid or divert his responsibility to others. Planning also develops the sense of team spirit and group work. 

Viii Aid to Business System : Planning is the initial tool to business success. It plays a key role for the successful operation of the business. It helps to select the best course of action among many alternatives and defines clear line of action. Besides, it brings unity in action, minimizes cost and effort and coordinates among all the members of the organization. Ultimately, it helps to develop working efficiency and to achieve predetermined goals in an effective way. Thus, planning is the best for the successful operation of business activities. It is known as the key to business activities.

Ix Brings Systemization : Planning contributes to develop a system and uniformity in organizational performance. It clearly defines authority and responsibility of each and every employee from upper to subordinate levels. It integrates and unites all the possible efforts of the organization. It avoids random activity and the concept of trial and error. It provides order rationality to the organization. It brings maturity in decision and makes simplification on its implementation. It brings coordination to complete the work in systematic and efficient manner and ultimately helps to minimize time and cost. Therefore, planning is essential function for the successful completion of organizational performances so that it can adjust itself in this competitive and ever changing environment of the society. It plays an important role to maintain unity in action and coordination among all the units and employees, improve productivity, maintain effective control and develop overall working efficiency of the business

Answerd on:2015-12-02 Answerd By:scribed

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