Importance of Planning in Management

Planning as a Management Function

Planning, as a management function, refers to actions taken by organizations to determine and establish its direction in achieving a particular objective (Shraeder, Self, Jordan & Portis, 2014). It serves as the most important functionality of management because it sets a pace for organizing, controlling, and leading. Organizations should put much emphasis on planning because it spells out almost every aspect of its future. Below are some of the benefits of the planning function of management.

Facilitation of the Decision Making Process

The most widely recognized importance of planning is its facilitation of the decision-making process. Planning serves as a guide in settling on both short and long-term business decisions. For instance, when a certain activity requires making an important decision, leaders have to put into consideration the overall plan, as well as the trajectory of a business. Therefore, prior planning ensures that managers make accurate and efficient decisions by providing necessary information (Karim, 2011).

Providing Direction for Different Activities

Second, planning gives an organization the direction to follow when carrying out different activities. The overall process of planning entails laying out a comprehensive map that a particular task, such as a project, should follow. Thus, planning helps businesses stay in line with the direction meant to produce maximum benefits.

Evaluation and Reviews of Practices

Additionally, planning allows for the evaluation and reviews of practices, which helps a business determine what idea works best for a particular process (Ufartiene, 2014). Monitoring and reviews are conducted in the final phases of the planning process, and organizations can take advantage of this to lay out a permanent plan for bigger projects.

Achieving Organizational Objectives

Finally, planning puts organizations at a better position to succeed, compared to those that do not have plans. This is primarily because planning involves the creation of organizational objectives.

References

Jeseviciute-Ufartiene, L. (2014). Importance of planning in management developing organization. Journal of Advanced Management Science Vol, 2(3).

Karim, A. J. (2011). The significance of management information systems for enhancing strategic and tactical planning. JISTEM-Journal of Information Systems and Technology Management, 8(2), 459-470.

Schraeder, M., Self, D. R., Jordan, M. H., & Portis, R. (2014). The functions of management as mechanisms for fostering interpersonal trust. Advances in business research, 5(1), 50-62.