Planning: The Importance Of Planning In An Organization
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All types of organizations whether it is a private company or government-owned organization it requires to do proper planning. The five years plans are made by the government in the country, while business firms have its own plans that may be related to production plan, sales plans, etc. Organizations strive to stay in the market to earn profits, but this can only happen if the management takes necessary steps for effective planning that will ensure for smooth functioning of the organization. Managers put in immense efforts for achieving the organizational goals, but they also need to make business predictions for the future, so that they are well prepared in advance.
The reports analyses and discusses the planning function in…show more content… Planning enables in bridging gaps between where we are currently, and where we want to be in future. Planning is the most important managerial function. Even a small task in the organization requires planning because it needs to be clear what and how it’s to be done. Hence, effective planning requires innovation and creativity.
Before initiating with the planning function, it is important to have all the objective sets, only then the company will know where it wants to be in the future. Planning is required at all levels of the company, and it involves making effective decisions from the given alternative courses of action. Planning function of management deals with setting up of objectives along with developing suitable courses of actions that will enable them in achieving the desired objectives (Hannagan, 2008). The objectives enables in giving direction for taking the necessary decisions and actions.
Planning is certainly needed because it tells the organization where to go by providing the right direction, and reduces the possibility of risks by keeping the organization well-prepared with the forecasts. The importance of planning is discussed as…show more content… There are different ways to act for achieving the objectives. The alternative courses of actions needs to be identified, which may be done in routine or innovatively. Alternative courses of actions may be developed by involving people to share ideas
4. Evaluation of alternative courses of actions
For next steps the pros and cons for each alternative should be weighed in the light of the objectives that are to be achieved. The alternatives are evaluated based on its consequences and feasibility.
5. Selection of an alternative
The next step requires decision making for adopting the best plan. The ideal plan that would be chosen should be feasible with less consequences. The decision for selecting the best alternative courses of action will be based upon the manager’s judgment, knowledge and experience.
6. Implementation of the plan
This step requires to put the plan in action, and it involves other managerial functions also. For example, the company has a plan to increase the production, then they require more labor and need to purchase more machinery.