Features of Planning
The features of planning are:
Forward-Looking – Planning is a forward-looking or a futuristic process. It requires a manager to look into the future and make the plan accordingly.
Continuous Process – Planning is not a one-time thing. It is a continuous process as the planning is made for the short term and the long term. When one plan is executed, the next one is drawn up, and this cycle goes on.
Objective Oriented – Planning is objective or goal-oriented, as the planning is done by keeping in mind the objectives that an organization needs to achieve.
Universal – Planning is universal or pervasive as it applies to all the departments of an organization. It is not something that applies only to the top management of any organization.
Decision Making – Planning is aimed at better decision-making. During planning, an organization would get to know various options or alternatives available to achieve its objective. It can decide the best possible alternative after considering the pros and cons of every alternative. This becomes possible only because of planning.
Importance of Planning
The importance of planning can be explained through the following points:
Planning provides and directs the course of action required to be taken to achieve the objectives of an organization.
Planning helps in improving the performance of people, departments, and the organization as planning would suggest the best course of action to be taken among the various alternates.
Planning helps in mitigating risks and uncertainty to a certain level.
Planning would enable proper coordination among various departments, and it would help in running operations smoothly.
Planning will help identify the possible threats and challenges, which will help the organization deal with them effectively.
Planning helps in measuring the actual performance against the standard performance and thus helps in the control function.
Advantages and Disadvantages of Planning
Advantages and Disadvantages of Planning – Like every other process or function, planning also has its advantages and disadvantages, which are summarized below:
Advantages of Planning
Planning helps in better and effective decision-making.
Planning is goal-oriented and helps in setting goals and achieving them by proper allocation of resources. Planning also reduces waste and improves efficiency.
Planning ensures that the operations are running smoothly, and it helps in achieving better coordination among various departments of an organization.
Planning envisages the possible challenges and obstacles and helps the organization to be well prepared to tackle them.
Disadvantages of Planning
Planning cannot be 100% accurate as it involves looking into the future, which is unpredictable.
Planning is a time-consuming and expensive process as it requires collecting and analyzing vital information continuously.
Plans need to be revised continuously depending upon the change in the situation or environment. This makes it difficult for the organization as it may seem that it is always spending its time and resources on things that cannot be predicted. When times are changing rapidly, planning may seem a futile exercise.
Planning does not consider the change in the external environment like Government policies, natural disasters, etc. If the external environment changes substantially, planning will become useless.
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