Answer:
Meaning: Planning is the first and basic function of management. It means deciding in advance what is to be done, how it is to be done, when it is to be done and by whom it is to be done.
Definition: According to Koontz and O’Donnell, “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are to where we want to go.”
Importance of planning:
- Provides direction: Planning decides objectives and the course of action in advance, so all employees know what they have to do and work in the same direction.
- Reduces risk and uncertainty: Planning forecasts future changes and prepares the organisation to face them, so the risks of the future are reduced.
- Avoids wastage of resources: Activities are planned in advance, so overlapping, duplication and wasteful activities are avoided and resources are used efficiently.
- Encourages innovation and creativity: Planning requires managers to think of new ideas and better ways of doing work.
- Facilitates decision making: Planning involves choosing the best among alternatives, which helps managers take rational decisions.
- Basis for other functions: Organising, staffing, directing and controlling are all based on plans, so planning is the primary function.
- Establishes standards for controlling: Plans set targets against which actual performance is measured, so planning makes controlling possible.
- Helps achieve objectives and co-ordination: Planning integrates the activities of different departments towards common goals.
Thus, planning is essential for the success of every organisation.
