Planning is
a major part of the business. In fact, it is the first and foremost step by the
organization towards the achievement of their goal. In terms of business, it
basically refers to the process of setting up of objectives in a given time period
and analyzing all of the alternatives possible to achieve those objectives and
then finally, choosing the correct method to do so.
We can tell
by its definition itself that it is a crucial part of the business that cannot
be ignored. Let’s understand in detail exactly how important planning actually
is from a business’ perspective.
1.PROVIDES
DIRECTION
If we have
already stated in advance that what our objectives are and how the work is
supposed to be done, then it will provide a direction to us. Planning makes
sure that all the objectives are clear so that everybody knows what action is
to be taken and in which direction. All the employees are aware what the
organization has to achieve and what they must do in order to complete those
achievements. If there won’t be any planning done beforehand, the employs would
be confused and will work in different directions which would lead to nothing
but chaos.
2.REDUCES
UNCERTAINITY
Planning is
an activity that allows the organization to look ahead and anticipate the
uncertain events and risks that may take place. If we have a plan in advance,
there are less chances of the organization facing a loss in an uncertain event.
Therefore, planning anticipates the future risks and develops possible
solutions for it beforehand. Although it must be noted that planning only
anticipates the upcoming risks and does not eliminate them. So, it won’t help
you to avoid those problems but will provide a way to make sure you are
affected the least.
3.REDUCES
USELESS ACTIVITIES
Planning
makes sure that each and every department in the organization knows their goal
and the employs know what they are doing. There is a clarity in thoughts and
actions of everyone which helps to carry out the operations smoothly without
any confusion. Due to this, there is very low chances of redundant activities
taking place and wasting the time and resources. It becomes easier to detect
the inefficient work and eliminate them.
4.PROMOTES
CREATIVE IDEAS
Planning is
all about thinking in advance about what to do and how to do it and therefore,
new innovative and creative ideas can take place and provide everyone with a
solid plan. It is closely linked to creativity.
5.HELPS IN
DECSIONS
It helps the
organization to look ahead and gives them a chance to protect themselves
against the uncertain events and prepare with an action plan for it. For this,
one must choose the correct plan from among the various possible alternatives
available. Here, they must look and evaluate both, the positive as well as the negative
aspects of all the alternative choices because they need to select the one
which is the most feasible and profitable. Therefore, planning helps in making
efficient and fully developed decisions.
