The needs of planning are as follows:

• Achieve Objective

The plan focuses action in the light of objectives. Planning avoids confusion and misunderstanding and ensures unity of action with the assignment of responsibilities and authority at all levels.

• Help to Tackle Business Complexity

Running a business in today’s competitive environments, not an easy task. Planning gives proper direction as to how, what, when and by whom the works are to be done. It makes the job of a manager easy and helps to tackle business complexities.

• Basis of effective control

Planning is basis for effective control. Creative actions of managers require for an organizational goal. Planning is a useful technique for helping managers cope with uncertainty and change by promoting creativity.

• Minimize the Chance of Business Failure

Planning involves the selection of the most appropriate alternatives and best objectives. Hence, there is the greater possibility of avoiding business failure through sound planning.

• Best Utilization of Resources

Planning is a must for efficient and effective utilization of the scarce resources by reducing the wastage. Such use of resources can be identified while preparing the plan and selecting the best course of action. Hence the need for planning.

• Basis for Management Functions

All other managerial activities have no direction in the absence of planning. It is planning which set all management functions towards a move for successfully completing the organizational activities.