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Importance of planning in management are: Planning is the first and most important function of management. In the absence of planning all the business activities of the organisation will become meaningless.
Consequently, the problems of when, where, what and why are almost decided. In such a situation coordination is established among different activities and departments.
It puts an end to overlapping and wasteful activities.
He will think like this: Should some other varieties of the existing products be manufactured?
Should retail sales be undertaken along with the wholesales?
Standards are laid down about their work, time and cost, etc.
Under controlling, at the time of completing the work, the actual work done is compared with the standard work and deviations are found out and if the work has not been done as desired the person concerned are held responsible. (Measurement of actual work, knowledge of deviation and holding the labourer responsible falls under controlling.) Thus, in the absence of planning controlling is not possible.Now all the departments, e.g., purchase, personnel, finance, etc., will decide their objectives in view of the sales target.In this way, the attention of all the managers will get focused on the attainment of their objectives.Planning has again gained importance because of uncertain and constantly changing business environment.In the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future.(2) Planning Reduces Risks of Uncertainty: Planning is always done for future and future is uncertain.With the help of planning possible changes in future are anticipated and various activities are planned in the best possible way.In the absence of this information, the amount of money can be more or less than the requirement in that particular month. In case, the money is less than the requirement, the work will not be completed and in case it is more than the requirement, the amount will remain unused and thus cause a loss of interest.(4) Planning Promotes Innovative Ideas: It is clear that planning selects the best alternative out of the many available.By keeping these facts in mind and planning the future activities, the possible difficulties can be avoided.(3) Planning Reduces Overlapping and Wasteful Activities: Under planning, future activities are planned in order to achieve objectives.