Question

Explain the following points of importance of planning: (i) Planning facilitates decision-making (ii) Planning establishes standards for controlling…

Accepted Answer

Importance of Planning: • (i) Planning facilitates decision-making: Planning helps the manager to look into the future and make a choice • from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable proposition. • (ii) Planning establishes standards for controlling: Planning provides the goals or standards against which the actual • performance is measured. It is a prerequisite for controlling. If there were no goals and standards, then finding deviations which is a part of controlling would not be possible. • (iii) Planning promotes innovative ideas: Since planning is the first function of management, 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. OR (b) Explain the following points of importance of delegation: (i) Facilitation of growth (ii) Basis of management hierarchy (iii) Better coordination Importance of delegation: • (i) Facilitation of growth: Delegation helps in the expansion of an organisation by providing a • ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play significant roles in the launch of new projects by replicating the work ethos they have absorbed from existing units, in the newly set up branches. • (ii) Basis of management hierarchy: Delegation of authority establishes superior subordinate • relationships, which are the basis of hierarchy of management. It is the degree and flow of authority which determines who has to report to whom. The extent of delegated authority also decides the power that each job position enjoys in the organisation. • (iii) Better coordination: The elements of delegation, namely authority, responsibility and accountability help to define the powers, duties and answerability • related to the various positions in an organisation. This helps to avoid overlapping of duties and duplication of effort as well as gives clarity in reporting relationships, and develop effective coordination amongst the departments, levels and functions of management.

Explain the following points of importance of planning :
(i)
Planning facilitates decision-making
(ii)
Planning establishes standards for controlling
(iii)
Planning promotes innovative ideas

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