Importance Of Planning

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Planning is the organization’s goals, establishing strategies for achieving those goals and developing plan to integrate and coordinate work activities. It is concerned with ends (what is to be done) and as well as with means (how it’s to be done). 2. The purpose of planning is to set the standards to facilitate control. Planning also provide direction and ensured that efforts are being put is not wasted. Planning gives a basis for teamwork as they can reach the goals and the team members can start contributing in the achievement. Moreover, the changes that take place in the environment needs to be adapted and adjusted accordingly. 3. Studies have indicated that formal planning is often associated with positive financial results. Certain…show more content…
Goal is the result or achievement toward which effort is directed. In business, goals are part of the planning process. They usually include resources allocations, schedules, and other necessary actions to accomplish the goals. There are two types of goals, stated goals and real goals. Stated goal is an official statement of what an organization says and let the stakeholders to believe its goal is. Moreover, real goals is where it goals and organization actually pursues, as defined by the actions of its…show more content…
Planning may create rigidity. When organization was set into specific goals, the assumption may have been that the environment wouldn’t change. If it’s faulty, managers who continue to pursue the original goal may face trouble. Staying on course when the environment is changing can be a cause of disaster. Plans can’t be developed for a dynamic environment. Today’s business environment is often unpredictable and full of randomness. Managing under those conditions must require flexibility, and that means not being tied to formal plans. Formal plans can’t replace intuition and creativity. Organizations often succeed because of someone’s innovation vision and mechanical analysis reduces the vision. Moreover, planning focuses managers’ attention on today’s competition but tomorrow’s survival. Formal has a tendency to focus on how to capitalize on existing business opportunities within an industry but may not allow managers to consider creating or reinventing an industry. Therefore, formal plans may result in costly blunders when other competitors take the lead. Fear of failure. To set goals and to work towards achieving them, have to take a risk. Managers fear that failure will lower their self-esteem and it will threaten their job security. Hence, they are unwilling to set goals to achieve
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