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EDUindex News

WHY IS PLANNING IMPORTANT IN BUSINESS?

 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.