- Reduces Uncertainties
Planning is essential to overcome future uncertainties. It enables the organization to face these uncertainties with minimum wastage of resources. Planning is concerned with forecasting the future. It helps to reduce future uncertainties to some extent.
- Economical Operation
Planning focuses on efficiency and economy in operation. Guess work is banished, facilities used to the best advantage which minimizes costs of performance. It saves time, effort and money.
- Facilitates Control
Planning and control functions are said to be the inseparable twins of management. There is nothing to control without planning and without control planning becomes a futile exercise. Against the backdrop of planning, standards are set, which help in channeling behavior in the right direction.
- Provides Basis for Team Work
The plan defines the goals. On its basis, works assignments can be fixed. Once member knows what is expected of them, they can contribute better. Further, planning permits employees to participate in the ‘thinking’ process. This helps them to develop a board mentality which leads to their whole hearted effort.
- Improves Competitive Strength
Planned activities are definitely systematic. Hence they are expected to produce better results in comparison to the non-planned as they are prepared with great exercise based on facts and figures. The result increases in efficiency. It makes the organization strong and capable enough to face competition.
- Better Coordination
The accomplishment of goals in the absence of coordination is really a difficult task. Well, prepared plans unify interdepartmental activities. Each department knows what it must do to contribute to the objectives of the organization. Without planning such coordination would be a dream, with planning a reality.
- Systematized and Smoothens Flow of Work
Planning develops a system of working. There exists no place for trial and error. The result is a smooth flow of work as an everyday activity is set, controlled and coordinated as well.