Importance Of Planning In Business
“Planning is concerned with the mental state of a manager. He thinks before undertaking any work. Other functions of management such as organizing, staffing, directing, coordinating and controlling are also undertaken after planning. ”
Planning is the essential administrative function in any business. Planning helps in determining the course of action to be followed for achieving various organizational objectives. It is a decision in advance, regarding what to do, when to do, how to do and to whom should a particular task be entrusted. Planning is a process, in which a lot of thinking takes place before things start to happen in actuality.Planning is concerned with the mental state of a manager. He thinks before undertaking any work. Other functions of management such as organizing, staffing, directing, coordinating and controlling are also undertaken after planning. Planning is the determination in advance of a line of action by which certain results are to be achieved in a business organization.
It is the selection and relating of facts and the making and using of assumptions regarding the future. For this purpose, ideas and formulations of purposed activities believed necessary to achieve desired results are employed. It is a process of looking ahead. The primary object of planning is to achieve better results.
It involves selection of organizational objectives and developing policies, procedures, programmes, financial plan and strategy. Planning is an incessant process that takes place at all levels of management. A detailed planning is done in the beginning but the actual performance is reviewed and suitable changes are made in plans when actual execution is done.
Plans may be of many kinds, such as short-range plans, medium range plans and long range plans, standing plans, single use plans, tactical plans, directorial plans, operational plans, etc. Much depends on the type and complexity of the problem that the business faces at a particular moment of time. Then, the market forces, social circumstances and the political picture also have to be kept in mind, especially when you have a large business with a turnover in multi-millions.
The process of planning involves a number of steps. First is the gathering of information. Then comes the laying down of the objectives and then developing planning comes into picture. After this, examination of alternative course of action is done; the evaluation of action patterns is also necessary. After reviewing all the limitations and merits, a particular plan is implemented in business.
Author - DeeKay
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