2. Time consuming
5. False sense of security
6. Psychological barrier
Planning is the function that determines in advance what should be done. It consists of selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives.
Planning is the most basic or primary function of management .it precedes other functions. It provides the foundation upon which organising, staffing, directing and controlling functions can be carried out.
Planning involves determining the objectives and selecting a course of action to achieve them .it implies looking ahead and deciding in advance what is to be done, when and where it is to be done, how and by whom it is to be done.
Importance / Benefits / Advantages of Planning
1. Clarifies the objectives – it defines the objectives of individual departments and organisation as a whole in concrete terms
2. Makes the activities meaningful – enables the individuals to contribute maximum towards achieving targets
3. Leads to economy and efficiency – cuts down the unnecessary expenditure and utilities the resources maximum
4. Reduce the risk of uncertainty – it anticipates the future events and face them
5. Facilitates decision-making – Planned target provides base on which alternative courses of action are considered and analysed
6. Facilitates coordination – as it helps in Channelising and harmonizing the efforts of various departments
7. Promotes creativity – provides opportunity to managers to suggest ways and means to achieve targets effectively
8. Provides basis for other functions – planned target serves the base for all other functions of management
Disadvantages / Limitations of Planning
(a) Internal: Within the control of business man
1. Time consuming – Planning requires collection of information, its analysis and interpretation which takes much time. This shows that planning is time consuming.
2. Expensive – Planning involves collection of data, their analysis and interpretation that makes the planning process expensive
3. Non-availability of information – Value of planning depends upon the quality and accuracy of data collected. When reliable information is not available, planning becomes useless
4. Probabilities – Plans are based on estimates which are not exact. Success of planning depends on accuracy of estimates.
5. Frustrating – Planning sometimes can be very frustrating because it requires an extremely detailed, careful and analytical thought process
(b) External: Beyond the control of managers
1. Natural calamities – flood, earthquakes, etc.
2. Changes in market conditions – Changes in fashion
3. Changes in technologies – Replacement of simple typewriter by electronic typewriter
4. Change in govt. Policies and rules – Increase in excise duty
5. Due to Competitor’s policy – Reduction in prices
limitation I ll tell you later ok