The Importance of Planning

facebook-logoFrom the definition of planning we can deduce that planning serves the following purposes:

  • During planning management sets objectives.  The objectives indicate the direction in which the organization must move. The management then makes plans to achieve these objectives.
  • The feasibility of the plans determines whether the objectives can be achieved or must be adapted. Guesswork is reduced and the risks are therefore also reduced.
  • Planning reduces uncertainty.  By studying the future situation, managers will be able to identify possible changes, threats or problems.  In this way they get a vision of the future and can take steps to ward off crises and identify opportunities.
  • Planning facilitates control.  Without planning there would be no control.
  • During planning we set objective and standards.
  • Through control we compare the real outputs with these objectives.
  • Deviations are identified and corrective actions are taken.

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