Suryodaya Ltd appointed a team of five efficient managers to plan for its new project of building a residential colony For this, they are paid a huge amount of remuneration also
Explain, giving reasons, incurring such huge expenditure on planning is justified for the company

Explanation

Planning is certainly important as it tells us where to go It provides direction and reduces the risk of uncertainty by preparing forecasts. The major benefits of planning are
(i) Planning provides direction By stating in advance how work is to be done in future, planning provides direction for action It clearly defines what the employees have to do, when to do, how to do and for whom to do. When employees are aware of what they have to do, departments and individuals are able to work in coordination. If there is no planning employees would work in different directions and would not be able to achieve its goals
(ii) Planning reduces the risk of uncertainty It is an activity, which enables a manager to look ahead and anticipate changes. By deciding in advance, planning shows the way to deal with changes and uncertain events Such changes can only be anticipated but not eliminated altogether til Planning reduces overlapping and wasteful activities it serves as the base for coordination by avoiding confusions and misunderstandings. Various activities of different departments and divisions are carried on in an effective manner which reduces the overlapping and wasteful activities. It ensures clarity in thought and action and work is carried on smoothly by reducing useless and redundant activities
(iv) Planning promotes innovative ideas It is an intellectual process, which involves finding better ideas and better methods to perform a particular job. In planning, new ideas can take the shape of concrete plans
(v) Planning facilitates decision-making It helps the manager to look into the future and choose amongst the various alternative courses of action, in order to find out the most viable economical and suitable plan
(vi) Planning establishes standards for controlling it provides the standards against which actual performance is measured. It helps in finding deviations between desired and actual results, and take corrective action depending upon the level and type of deviations. Thus, planning facilitates controlling