Question

Explain the following points of importance of 'Planning function of management: (i) Planning provides directions: (ii) Planning promotes innovative…

Accepted Answer

(i) Planning provides directions § Planning ensures that the goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. § If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. (ii) Planning promotes innovative ideas § Planning promotes innovative ideas as new ideas can take the shape of concrete plans. § It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business. (iii) Planning reduces the risk of uncertainty § Planning is an activity which enables a manager to look ahead and anticipate changes. § By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed. OR § Objectives are the ends, which the management seeks to achieve. They are usually set by top management of the organisation and focus on broad, general issues. § Objectives need to be expressed in specific terms i.e. they should be measurable in quantitative terms and are to be achieved within a given time period. Rule § Rule is a specific statement that informs what is to be done and not to be done. It does not allow for any flexibility or discretion. § It reflects a managerial decision that a certain action must or must not be taken. Budget § A budget is a statement of expected results expressed in numerical terms. It is a plan which quantifies future facts and figures. § Since budget represents all items in numbers, it becomes easier to compare actual figures with expected figures and take corrective action.

Explain the following points of importance of 'Planning
function of management:
(i)
Planning provides directions:
(ii)
Planning promotes innovative ideas.
(iii)
Planning reduces the risk of uncertainty.

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More from Planning

(a)OR(b)Explain the following points of importance of 'Planningfunction of management:(i)Planning provides directions:(ii)Planning promotes innovative ideas.(iii)Planning reduces the risk of uncertainty.Explain Objectives', 'Rule' and 'Budget' as types of plans.Objectives

Marking-scheme solution

More from Planning

Explain the following points of importance of 'Planning
function of management:
(i)
Planning provides directions:
(ii)
Planning promotes innovative ideas.
(iii)
Planning reduces the risk of uncertainty.