(a)OR(b)

Explain the following points of importance of ‘Planning’

function of management :

(i)

Planning provides direction.

(ii)

Planning reduces the risk of uncertainty.

• (a) (i) Planning provides direction. 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. • $\displaystyle 18$ 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 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.• (i) Planning is futuristic: Planning involves looking ahead and preparing for the future to meet future events effectively to the best advantage of an • organisation. Planning is regarded as a forward- looking function based on forecasting future events and drawing plans accordingly. • (ii) Planning is a mental exercise. Planning requires application of the mind involving foresight, • intelligent imagination and sound judgement. It is an intellectual activity of logical thinking rather than doing, because planning determines the action to be taken. It must be based on analysis of facts and forecast.