Benefits Or Advantages Of Planning
The main advantages of planning can be expressed as follows:
1. It Helps To Achieve Organizational Goals
All organizational activities are directed towards the attainment of goals and
objectives. Planning defines objectives and provide framework and road map,
and procedures to achieve those goals and objectives. So, it is impossible for
the organization to obtain specific goals without proper planning.
2. Planning Ensures Proper Utilization Of Available Resources
Optimum utilization of resources is another advantage of planning. To obtain predetermined goals, all resources (human resources, physical
resources and financial resources) should be properly utilized. Planning
promotes better utilization of resource which helps to achieve desired output.
3. It Reduces Uncertainty
Planning is futuristic in nature. It is done on the basis of past results and
future prediction. Efficient management can make better plan by eliminating
past mistakes and predicting possible future events wisely. So, it helps to
lower the risk of uncertainty in the future.
4. It Helps To Maintain Coordination And Control
As we know that all the efforts are directed towards the attainment of
specific goals. So, available resources are properly applied in a
coordinated manner. All the activities are done according to the plan. So, it
makes proper coordination, discipline and control in the organization.
5. It Improves Employee Motivation
Employee motivation is another notable benefit of better planning. It sets
clear goals and objectives that should be obtained in the future and employs
human resources (workers) as per their skills and ability. which promotes
specialization and division of work. So, it increases employees motivation in
the organization.
6. Planning Minimizes Costs
Minimization of unnecessary cost is another notable advantage of planning. Because of better utilization of resources, effective control and
coordination, efficiency and performance can be increased. It leads to
increase in the production which decreases the cost of production. It also
minimizes the wastage and idle time in the workplace. So, it brings economy by
minimizing operational costs,
7. Helps To Improve Organizational Effectiveness
Maximum utilization of resources, improved motivation , better control and
cost minimization increases organizational effectiveness.
8. Planning Avoids Duplication
All the activities are clearly defined and assigned to the concern unit,
department, section or employees properly that helps to avoid duplication and
overlapping.
Drawbacks Or Disadvantages Of Planning
The main constraints or disadvantages of planning can be expressed as follows:
1. Planning Is Costly And Time Consuming
Planning process consumes money , adequate time and effort. It takes time to
collect past data and information. Experts services (with high salary and
allowance) is required to analyze obtained data , to predict future situation
and to compare different alternatives. So, it is complex, expensive and costly
process.
2. It May Lack Accuracy
Planning depends on the historical data and future forecast. Because of the
lack of correct data and uncertainty of future trend, it may lack accuracy and
not give desired output or goals. So, lack of accuracy is one of the main disadvantages of planning.
3. Not Suitable For Emergencies And Crisis
Prompt decision and quick action is required at the time of emergency and
crisis. But planning is a time taking process. So, it is not useful for such
situations.
As we know that planning is dependent on future predictions and future is not
certain. Changes in technology, changing government rules and regulations,
change in market situation, natural calamities etc. may affect planning
function.
5. Planning Is A Rigid Process
It is another disadvantage of planning that employees are forced to do their jobs as per the predetermined plan and policy
of the organization. It may discourage freedom and creativity. There is less
opportunity for personal development and growth. So, it is rigid and
inflexible process.
Pros And Cons Of Planning In Short
Pros:
- It helps to achieve the goals and the objectives of the firms.
- It promotes optimum use of resources in the organization
- Proper planning helps to reduce risks and uncertainties
- It helps to minimize the operational costs
- It facilitates better coordination and control in the workplace
- It helps to increase motivation and employee satisfaction
Cons:
- It may become inaccurate because of the lack of reliable data and information
- It is costly, time consuming and rigid process
- Because of the lengthy decision making process, it is not suitable in the emergency situation
- It may discourage the creativity of the employees
- It lacks flexibility
