Accounting to Koontz, ODonnell and weihrich, planning is an intellectually demanding process; it requires the conscious

determination of courses of action and the basing of decisions on purpose, nowledge and considered estimates! "lanning is
one of the most important function of management because of the following factors#
$! Makes the objectives clear and specific: planning clearly specifies the ob%ecti&es and the policies or acti&ities to be
performed to achie&e these ob%ecti&e in other words what is to be done and how it is to be done are clarified in planning!
'! Off setting the uncertainty and change: planning is necessary to loo ahead towards future and to tae decisions
regard facing the e(pected changes)requirement of the future! E.g. before coming of summer session producers started
production for the products to be used in summer!
*! Plans facilitate decision-making: to achie&e the ob%ecti&e predetermined under planning, business has to tae
&arious decisions by considering the a&ailable resources! +f %ob may be completed by using &arious alternati&es ,e!g! manually
or by machines- and the best alternati&e is decided by the management, which is more helpful in achie&ing the ob%ecti&e!
.! Provides basis of control: under controlling actual performance is compared with the planed performance
,target)ob%ecti&e-! /o planning is the base of controlling process!
0! Leads to economy and efficiency: planning clarifies the wor and its method of doing! 1esultantly it reduces
confusion and wastage of resources in the form of thining at the time of doing! /o efficiency of the worer will risen which will
further result economy in production!
2! acilitates integration: under planning proper directions as per plane are pro&ided to the subordinates! 1esultantly
they all mae effort towards the achie&ement of preplanned ob%ecti&e! /uch co3ordination of sub3ordinates and their
departments will certainly help the organisation in achie&ing its ob%ecti&e!
4! Encourages innovation and creativity: planning is the process of thining in ad&ance and so plans are made to
achie&e a target at future date by using latest methods and technology to perform the industrial)business acti&ities and so
plans lead to inno&ation!
5! acilitates control: planning facilitates the managers in performing their function of control! "lanning and control are
inseparable in the sense that unplanned action cannot be controlled because control in&ol&es eeping acti&ities on the
predetermined course by rectifying de&iations from plans! "lanning facilitates control by furnishing standards of control! +t lays
down ob%ecti&es and standards of performance, which are essential for the performance of control function!
6! !mproves motivation: the effecti&e planning system ensures participation of all managers, which impro&es their
moti&ation! +t impro&es the moti&ation of worers also because they now clearly what is e(pected of them! 7oreo&er, planning
also ser&es as a good training de&ice for future managers!
$8! !mproves competitive strength: effecti&e planning gi&es a competiti&e edge to the enterprise o&er other enterprises
that do not ha&e planning or ha&e ineffecti&e planning! 9his is because planning may in&ol&e e(pansion of capacity, changes in
wor methods, changes in quality, anticipation of tastes and fashion of people and technological changes, etc!
$$! Encourages innovation and creativity: planning helps inno&ati&e and creati&e thining among the managers
because many new ideas come to the mind of a manager when he is planning! +t creates a forward3looing attitude among the
managers!
$'! "chieves better coordination: planning secures unity of direction towards the organisational ob%ecti&es! All the
acti&ities are directed towards the common goals! 9here is an integrated effort throughout the enterprise! +t will also help in
a&oiding duplication of efforts! 9hus, there will be better coordination in the organisation!