Question

Explain the following points of importance of planning: (i) Planning provides directions (ii) Planning reduces the risk of uncertainty (iii) Planning…

Accepted Answer

Importance of Planning: • (i) Planning provides directions: Planning provides direction for action by stating in advance how • work is to be done. 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. • (ii) Planning reduces the risk of uncertainty: 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. • (iii) Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in • avoiding confusion and misunderstanding. Useless and redundant activities are minimised or eliminated. OR (b) Explain the following steps in the organising process: (i) Departmentalisation (ii) Assignment of duties (iii) Establishing authority and reporting relationships Steps in the Organising Process: • (i) Departmentalisation: The process of grouping together, activities which are similar in • nature is called departmentalisation. It facilitates specialisation. Departments can be created on the basis of products, territories, etc. • (ii) Assignment of duties: • Each of the departments is placed under the charge of an individual. Jobs are allocated to the members of each department in accordance to their skills and competencies. • (iii) Establishing authority and reporting relationships: Each individual should know who he has to take orders from and to • whom he is accountable. The establishment of such clear relationships helps to create a hierarchal structure and helps in coordination amongst various departments.

Explain the following points of importance of planning :
(i)
Planning provides directions
(ii)
Planning reduces the risk of uncertainty
(iii)
Planning reduces overlapping and wasteful activities

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