Benefits-Drawbacks

 What Is Functional Organization ?

Functional organization is highly specialized structure in which organizational functions are divided into smaller group and different departments (such as production department, sales department, IT department, human resource department, finance department, research and development department etc.) are created to perform different activities. Each department is managed, supervised and controlled by highly skilled and capable departmental head or manager.

Benefits Or Advantages Of Functional Organizational Structure

The main advantages of functional structure can be described as follows:

1. Proper Work Division

In this structure, organizational functions are divided into small groups and assigned to different units and departments. Highly skilled and qualified departmental heads and employees are selected to perform the tasks which helps to increase the performance and output.

2. Encourages Specialization

In functional organizational structure, various departments are created to bring specialization in the workplace. Each department consists or specialist and and expert manager and qualified subordinates. Specialization helps to increase efficiency and productivity.

3. Large Scale Production

Because of division of work and specialization, operational speed will be increased which facilitates mass production. Large scale production minimizes the cost of production.

4. More Profit

Specialization helps to minimize errors and wastage in the production process. Large scale production lowers the cost of production. Decrease in wastage and cost leads to increase in the earning of the organization.

5. No Duplication Of Work

Organizational tasks are segregated properly and allocated to the related departments or units which helps to eliminate the duplication of work.

6. Better Control And Supervision

Functional organizational structure follows decentralization in which supervision and controlling activities are done by both departmental managers and top manager. So, proper discipline can be maintained in the organization.

7. Relief To The Management

Operational activities are handled, supervised and monitored by the departmental heads. So, workload of top level management is reduced and they can utilize time in other important activities such as planning and policy making.

8. Flexibility

Functional structure is more flexible than other types of organizations. Changes can be made as per the requirement without disturbing other organizational activities.

Drawbacks Or Disadvantages Of Functional Organization

The main disadvantages of functional organization can be described as follows:

1. Complex And Expensive Structure

One of the main drawbacks of functional structure is that it is more complex and difficult to understand. It requires huge investment to form this type of organization. Higher remuneration for specialists and experts increases the operating expenses. Therefore, it is complex and costlier than line structure and line and staff organization.

      Also Read: 

Advantages And Disadvantages Of Line And Staff Organization

Advantages And Disadvantages Of Matrix Organization

Advantages And Disadvantages Of Committee Organization

2. Not Suitable 

Because of complexity and requirement of more investment, this design is not suitable for small and medium sized organization having less resources.

3. Possibility Of Conflict

There is a chance of conflict between departments because of the lack of proper communication and poor coordination. 

4. Poor Unity Of Command

Because of multiple command system, employees are accountable for number of supervisors which may lead to poor unity of command. In this situation, it is difficult to maintain proper control and discipline in the organization.

5. Delayed Decisions

In functional organization, quick decision is not possible because top management should consult with various departmental heads and specialists to make any decision. So , organization may have to face difficulties at the time of emergency when prompt decision is required.

Pros:

- It promotes specialization and division of work 

- Workload of top management is reduced

- It improves the performance, productivity and profitability

- There will be no duplication of works

- It reduces mistakes and errors

- It is flexible in nature

- There is a greater scope of expansion

- It is suitable for big manufacturing organizations

Cons:

- It is complex, expensive and resource consuming structure

- It is not suitable for small firms and non-manufacturing organizations

- Quick decisions cannot be made at the time of emergency

- High chance of conflict due to the lack of proper communication and coordination

- It ignores the principle of unity of command

What Is Line And Staff Organizational Structure ? 

Line and staff structure uses two layers of authorities in the organization (line authority and staff authority). Staff authority is responsible for policy making and planning, and line managers are responsible for the execution of daily organizational activities.  It includes the positive sides and eliminates the limitations of line structure and functional structure. Therefore, it is a modified version of line and functional organizational structure.

Merits Or Advantages Of Line And Staff Organization

The main advantages of line and staff organizational structure can be pointed out as follows:

1. Most Suitable Structure

line organization is very simple type of structure and it does not practice specialization in the workplace. On the other hand functional organization is more complicated because the relation between authorities is not properly defined. But line and staff organization accepts the positive sides and overcomes the drawbacks of line and functional structures. Therefore, it is the most suitable form of organizational structure.

2. Promotion Of Specialization

In line and staff organization, staff authority is concerned with planning function and line authority concentrates on the execution of tasks with the help of functional specialists. So, it promotes specialization which helps to increase efficiency and productivity.

3. Better Decision Making

Expert advice and suggestions are considered while taking decisions that helps the functional managers to make sound decision.

4. Reduced Workload

Because of dual authority and specialization, there will be a lesser burden to both line and staff officers. So, managers can perform their jobs more effectively.

5. More Flexible

Line and staff organization is flexible than line structure and functional structure. New departments or units can be created, subordinates can be hired and authority can be modified as per the requirement. Because of the flexibility, it facilitates growth and expansion opportunity.

6. Scope Of Advancement

Because of variety of jobs and regular conduction of training and development programs, it provides opportunity for advancement to the subordinates. It helps to increase their skills and specialty. It also increases employee motivation and job satisfaction.

7. Suitable For Big Organizations

Line and staff structure is suitable for big organizations and business firms which have more resources, employees and variety of operations.

Drawbacks Or Disadvantages Of Line And Staff Organization

The main disadvantages of line and staff organization can be pointed out as follows:

1. Expensive Structure

Line and staff organization requires more resources (infrastructure, finance and employees) that other forms of organizations. More remuneration should be paid to the specialists and experts. More training and development cost is required to improve the performance of staffs. So, it is expensive type of structure.

        Also Read: 

Advantages And Disadvantages Of Line Organization

Advantages And Disadvantages Of Functional Organization

Advantages And Disadvantages Of Committee Organization

2. Not Suitable For Small Organizations

Because of dual authority, requirement of more cost and complexity, it is not suitable for small and medium sized organizations having limited capital and resources.

3. Conflict Between The Authorities

Because of the improper division of roles and responsibility between line authority and staff authority, there may be a confusion and misunderstanding among the officers. Confusion and misunderstanding create conflict between two authorities. It may create burden for the top management to manage or settle this issue in the organization.

4. High Employee Turnover

Conflict between line and staff authority may discourage specialists , experts and subordinates working in the organization. So, if the top management fails to maintain better coordination and harmony in the workplace, employees may quit the job. Therefore, there is a chance of high employee turnover in line and staff organization than other types of structures.

5. Communication Problem

This type of design may create communication problem in the organization. Dual authority creates confusion to the subordinates and makes difficult for them to understand whose instructions to be followed and whom to report.

Pros:

- It brings specialization in the workplace

- It minimizes the work load of both authorities

- It is helpful in maintaining proper coordination

- It is more flexible than other types of structures

- It improves decision efficiency because of of experts advice and suggestions

- There is a scope for advancement

Cons:

- It requires more operational costs than other organizational structure

- Not suited for small firms having less resources and fewer activities

- There is a high possibility of conflict and misunderstanding

- It may increase the rate of staff turnover

What Is Line Organizational Structure ?

Line organization is the oldest and simplest structure which is mostly used by small organizations. It is also called vertical organizational structure because authority flows from top (superiors) to bottom (subordinates). In this type of organization authority remains with superiors (departmental heads, supervisors etc.) . They have the right to manage and control subordinates in the workplace. 

Benefits Or Advantages Of Line Organizational Structure

The main advantages of line organization can be pointed out as follows:

1. Simple To Operate

Line organization is the oldest , simplest and widely used structure. It is very easy to establish and operate because it requires less resources. Managers and employees can understand their duties, authority and responsibility clearly. 

2. Most Economical Structure

It is more economical than other form of organizations because it consumes less resources . It can be run smoothly with less expenses and less employees because it does not practice specialization.

Another notable advantage of line organizational structure is that authority and responsibility of each member in the workplace is properly defined . Jobs are assigned or fixed to each and every employees which helps to make them accountable for their performance.

4. Promotes Quick Decision

Manager or superior is a sole decision maker. He/she can make decision independently without consulting others. So, prompt decision making is possible in line organizational structure.

5. Better Supervision And Control

Because of defined responsibility, direct communication and unity of command, it is easy for the managers to supervise and control subordinates. So, good discipline can be maintained in the organization.

6. Opportunity For Development

A superior has the power to exercise authority in this form of structure. It helps them to develop managerial skills such as directing, supervising, motivating, controlling etc. So, line organization provides opportunity for executive development.

Drawbacks Or Disadvantages Of Line Organization

The main disadvantages of line organizational structure can be pointed out as follows:

1. Overload On Executives

One of the main drawbacks of line organization is that superiors are suffer from the burden of overloaded work. Because of single authority, they have to deal with various activities which increases their workload which may lead to decreases in their efficiency.

       Also Read: 

Advantages And Disadvantages Of Functional organization

Advantages And Disadvantages Of Line And Staff Organization

Advantages And Disadvantages Of Matrix Organization

2. Possibility Of Dictatorship

It follows autocratic leadership style in the organization because authority is vested with one superior. Autocracy may lead to dictatorship in the workplace. Possibility of favoritism and nepotism is also very high in this type of organization. 

3. It Discourages Specialization

Another demerit of this organization structure is that it lacks specialization. A single officer has to make various decisions, has to control different subordinates and has to supervise several activities in the organization. No one will be an expert in every fields. Therefore, superiors may not perform their duties efficiently.

4. Unstable Type Of Structure

Departmental head or superior is the key person to manage the whole organization. All the activities are conducted under his/her direction and supervision. If superior quits the job or dies, it is very difficult to run the organization.

5. Not Suitable For Big Organizations

Line organization is useful only for small organizations which have less resources, limited number of operations and less number of subordinates. This structure is not applicable for large organizations with more resources, various activities and employees. 

Pros:

- It is simple and requires less cost to operate

- Duties and responsibility are clearly defined for each employee

- Prompt decision is possible because of single authority

- Supervision and controlling is easy because of direct link between supervisor and employees and limited number of staffs.

- It is suitable for small organizations

- Better discipline can be maintained

Cons:

- It may promote favoritism, nepotism and dictatorship in the organization

- It increases the burden of work to the superiors 

- Performance may me reduced because of the lack of specialization

- Rigidity and inflexibility is one of the major drawbacks of this form of organization

- It is unsuitable for big organizations

What Is Specialization ?

Specialization is a process of breaking down the jobs into smaller units. The task is divided among the people according to their ability. Employees become perfect in the specific field because they have to perform same task over and over. It practices division of labor where a complex task is divided into different pieces of jobs and assigned to different staffs. It helps to increase the performance and productivity of the organization.

Benefits Or Advantages Of Specialization

The main advantages of specialization can be pointed out as follows:

1. It Increases The Efficiency

In specialization, jobs and duties are divided among the employees according to their skills and abilities. It promotes the principle of 'right man in right place' which helps to improve the efficiency and performance in the workplace.

2. Less Errors And Mistakes

Specialization helps to reduce errors and mistakes because tasks are assigned to highly qualified and professional employees having good skills and experience. Specialist workers commit less mistakes and errors than non-skilled ones.

3. Time Saving

Employees have to do same type of job regularly over and over which helps to boost the speed in their performance. So, they can perform more tasks in less time than non-specialized manpower. 

4. It Saves Costs

Increased efficiency, less mistakes and quick performance increases the productivity of the business. Specialization also lowers the wastage and unnecessary costs which helps to minimize the cost of production and increase the earning of the firm.

5. Less Supervision and Control

As we know that specialization believes in the principle of 'right man for right job'. it hires highly competent and self-motivated employees. So, it requires less supervision, direction and control to perform activities.

Drawbacks Or Disadvantages Of Specialization

The main disadvantages of specialization can be highlighted as follows:

1. Monotonous Work

Because of the repetition of job or doing a certain type of job everyday may lead to monotony. Employees may feel frustrated and stressed. So, monotony of work may lead to decrease the performance and productivity.

      Also Read: 

Advantages Of Division Of Labor

Disadvantages Of Division Of Labor

2. Increased Expenses

Skilled employees may demand high salary and other financial benefits as compared to un-skilled workers. So, it may increase administrative expenses in the organization.

3. It Lacks Flexibility

A specific type of work is assigned to each employee. He/she cannot perform other types of jobs because of the lack of skills and abilities. So, employees cannot be shifted or transferred to other departments or units. So, there is less employees mobility or flexibility in the work station.

4. Lower Job Satisfaction

Because of monotonous, stress and frustration, the job may become boring. Employees cannot get the opportunity to learn new skills to perform other tasks. So, there is no scope for career development. So, specialization may decrease the interest in the job which may lead to decrease in employee satisfaction.

Pros:

- It helps to minimize errors and mistakes while performing the job

- It increases the quality of output

- It helps to increase the productivity that leads to increase in the earning of the firm

- Because of the increase in efficiency, it saves time and cost of production

- It sharpens the specific skill of employees

Cons:

- Employees may feel boring because of the repetition of the same job over and over

- There will be no flexibility in the workplace because employee hired for specific job cannot be shifted or transferred to another job

- High possibility of employee frustration and stress 

- It may decrease employee satisfaction

- It increases the expenses due to the high salary of skilled employees

What Is Process Layout ?

Process or functional layout is an floor arrangement where machines and equipment of similar functions and processes are arranged in the same area. Similar types of machines and devices of each process are installed in the one floor or department. There are some benefits as well as limitations of process layout which are briefly discussed in this post.       

Benefits Or Advantages Of Process Layout

The main advantages of process layout can be highlighted as follows:

1. Flexibility

In process layout, changes and adjustment in operation can be made as per the requirement. So, it is more flexible than product layout. 

2. Less Interruption

Another benefit of process layout is that it does not interrupt the production process because if there is a breakdown in one machine the work will be shifted to another machine because there are other machines to perform similar jobs.

3. Easy Expansion

If the company wants to increase its production capacity, more machines and devices can be installed without disturbing existing layout and operation process. So, it has high scope for expansion.

4. Requirement Of Less Investment

Process layout avoids duplication of machinery which is not possible in product layout structure. So, it requires less capital to acquire machines and equipment.

5. Optimum Utilization Of Machinery

In product layout, machines and devices are used for single product line, but in process layout, they can be operated in full capacity because they can be engaged in different operation. So, it ensures maximum utilization of fixed assets.

6. Promotes Specialization

It ensures specialization in manufacturing process by using automatic equipment and highly proficient workers.

7. Less Supervision

Because of automation and specialization, less supervision is needed in this layout.

Drawbacks Or Disadvantages Of Process Layout

The main disadvantages of process layout can be described as follows:

1. More Cost Required

In process layout, equipment are arranged according to their functions. Similar machines are grouped in one floor. It increases the movement of materials from one process to another which increases the cost of materials handling. It also increases the chance of wastage because of intermittent flow of materials. So, it requires more cost of production than product layout.

     Also Read: 

Advantages And Disadvantages Of Product Layout

Difference Between Product And Process layout

2. More Floor Space

It requires more space to arrange machines and equipment. Separate floor space is required for the installation of different types of machines. So, it lacks optimum utilization of space in the production center.

3. Long Processing Time

Manufacturing process takes more time because of more movement of materials from one department to another. So, it is more time taking layout than product layout.

4. High Cost Of Production

Due to more material handling costs , wastage and slow production process, it increases the cost of production.

5. More Inspection And Supervision

It requires more inspection because each department should handle variety of jobs. It also requires strict supervision to control inventory.

Pros

- It is flexible and can be easily expanded as per the requirement

- There will be no stoppage in the production process

- Less supervision and control is required because of specialization

-  It fully utilizes the machines, equipment and devices in the work station

- It minimizes the overhead costs

Cons:

- It requires more investment

- More space is needed to arrange machines and equipment

- Due to long processing time, cost of production will be increased

- It requires more inspection costs than product layout

What Is Product Layout ?

Product layout is an sequential arrangement of various machines and devices in the workplace which are required for the production of a certain kind of product. All machines, and plants are installed either in linear shape or U shape.       

Benefits Or Advantages Of Product Layout

The main advantages of product layout can be explained as follows:

1. It Saves Cost And Time

In product layout, machines and equipment are arranged in the sequential manner (in linear shape or in U shape) which ensures smooth flow of operation and continuous production. Because of sequential layout and integrated process, it avoids backtracking of materials which helps to minimize material handling cost. It also lowers the cost of work-in-progress because of continuous production. It promotes automation by using modern machines and equipment that helps to decrease production time. So, it helps to save cost and time in the workplace.

2. Large Volume Of Output

Installation of automatic machines and equipment helps to perform production activities smoothly and continuously without making mistakes. It helps to produce large quantity of products in less time.

3. Less Cost Of Production

Because of the optimum utilization of resources and large volume of output, it minimizes the cost of production. Decreased cost of production helps to increase the profit of the firm.

4. Optimum Utilization Of Resources

It promotes proper utilization of resources such as floor space, equipment, human resources in the organization. Better utilization of resources helps to obtain better result because it increases the efficiency and performance.

5. Less Supervision And Inspection

Because of integrated process and repetitive nature of work, it requires less supervision and inspection in the production unit. Automated machine and sequential arrangement of work makes easy to regulate the production process.

Drawbacks Or Disadvantages Of Product Layout

The main disadvantages of product layout can be explained as follows:

1. Lack Of Flexibility

Major changes or adjustments are impossible it is designed to accomplish certain operation. So, product layout lacks flexibility.

       Also Read: 

Advantages And Disadvantages Of Process Layout

Difference Between Product And Process Layout

2. Requires Huge Investment

Product layout requires huge capital to acquire fixed assets such as machines, plants, equipment, space etc. 

3. Difficult To Expand

Because of less flexibility and requirement of large investment there is less scope for expansion of operation.

4. Boring And Monotonous

Employees may feel boredom and monotonous because of repetitive job and working on the same machine regularly for long time.

5. Chance Of Interruption

There is a risk of interruption in production process due to machine breakdown, fluctuation in power supply, system maintenance etc.

Pros

- It ensures smooth flow of operation because of automation and no backtracking of materials

- It helps in producing large volume of output which lowers the cost of production

- It consumes less cost and time for material handling

- It requires less supervision, inspection and controlling

Cons

- There is no flexibility in this layout

- Huge initial investment is required to obtain machines and equipment

- There is less scope for expansion because of the lack of flexibility

- There is a high possibility of equipment breakdown and stoppage of the operational process

What Is Responsibility Accounting ?

Responsibility accounting means identifying different responsibility centers (branch, department, units etc.) in the organization and measuring their inputs and output in order to understand their performance. It is an internal accounting system that compares actual performance of different responsibility centers with budget. It helps the company to achieve the accounting objectives.

Benefits Or Advantages Of Responsibility Accounting

The major advantages of responsibility can be highlighted as follows:

1. It Promotes Decentralization

In responsibility accounting, whole organization is divided into different units such as production department, marketing department, maintenance department etc. and responsibility is assigned to departmental managers. So, it encourages decentralization and delegation of responsibility which helps to manage organizational tasks efficiently.

2. It Reduces The Burden Of Top Manager

This system assigns the responsibility and duties to the managers of different departments, units, or responsibility centers. So, it reduces the workload of top managers and they can use their time and effort to make future plans and policies.

3. Fair Performance Evaluation

It evaluates the performance or achievement of  departments or units with the help of pre-established standards. It helps to measure the efficiency of each manager and employee of different responsibility centers. 

4. It Increases Motivation

Lower level managers know that they are under supervision and their achievement will be compared with pre-planned goals. So, it create awareness and motivates them to perform better to obtain good results.

5. Better Decision Making

Responsibility accounting provides data and information about the performance and outcomes of each department to the top level management. It helps the managers to make important decision regarding future planning and actions.

6. Corrective Action

It provides performance report of each responsibility center to the management as quickly as possible. It helps to take appropriate steps and corrective actions to improve operating activities in the organization.

7. Helpful For Cost Control

Responsibility centers are encouraged to perform activities within the limits of budget. It helps to minimize unnecessary costs in the workplace.

8. Suitable For Big Organizations

It is suitable for big business organizations with various departments, segments, units etc. because they cannot be monitored, controlled and managed by a single management.

Drawbacks Or Disadvantages Of Responsibility Accounting

The major disadvantages of responsibility accounting can be pointed out as follows:

1. It Is A Costly System Of Accounting

As we know that this system promotes decentralization, it requires skilled and competent line managers to manage departments properly. So, it requires more cost to hire capable managers and personnel.

2. Possibility Of Employee Frustration

Because of strict supervision and control, employees may feel frustrated and stressed. Frustration and depression adversely affect their performance which may reduce productivity and profitability.

3. Only For Controllable Costs

Responsibility accounting is applicable to measure and control controllable costs only. It does not work with uncontrollable costs.

4. May Lack Accuracy

Results obtained from responsibility accounting may lack accuracy if there is no quick and effective reporting system in the organization. Delayed report makes top management difficult to measure the performance and take appropriate steps in case of any mistake. 

5. It Is A Complex System

It is very difficult to establish organizational chart and to assign authority and responsibility properly to the right person. It is hard task to set goals or objectives for each center. So, it is a complex method of accounting.

6. Not Suitable For Small Organizations

Responsibility accounting is complex and costly system. So, it is not suitable for small business organizations with less operational activities and fewer resources.

Pros:

- It is helpful for performance evaluation of each department.

- It helps the management to make future plans and to make sound decisions

- It helps to minimize unnecessary expenses

- It is suitable for big companies 

- Because of decentralization, it minimizes the load of top management

- It improves the morale of the departmental heads because they can develop managerial skills

Cons:

- It is costly as well as complex system, so responsibility accounting is not applicable for small companies having limited resources

- Subordinates may be frustrated because of strict supervision and control . So, there is a possibility of conflict between individual goals and organizational goals.

- It only works for controllable costs

- It is difficult to define responsibility centers

What Is Team Work ?

Benefits Or Advantages Of Teamwork

2. Teamwork Increases Productivity

Suppose an individual can complete a task in 10 hours. But if it is performed by 5 people, it can be completed within 2 hours. It means more tasks can be completed if we work in a team. So, it helps to perform more tasks which leads to improve the productivity of the company.

3. Teamwork Provides Learning Opportunity

A team is a combination of different talents, different skills, different experience, different culture and different backgrounds. So, interaction among the members provides opportunity to learn new skills and gain knowledge which is very useful in personal growth and career development.

4. Better Quality Of Output

Another notable advantage of teamwork is that it ensures better quality of output. Because of division of work and specialization, minimization of errors, mistakes and wastage is possible. S, it helps to increase the quality of output. 

5. It Increases Employee Motivation And Morale

Teamwork decreases the workload which reduces the  burden and stress. It also provides learning opportunity that increases the skills and abilities. So, it helps to improve employee morale and motivation which leads to job satisfaction.

6. Teamwork Increases Interpersonal Skill

It promotes coordination and sense of commitment in the organization. Better coordination helps to improve communication and interpersonal skill of the employees.

7. It Encourages Innovation

Because of different minds and abilities, new idea and better solutions can be discovered to overcome the obstacles. So, teamwork promotes innovation.

Drawbacks Or Disadvantages Of Teamwork

The main disadvantages of teamwork can be expressed as follows:

1. Teamwork Lengthens Decision Making Process

One of the main drawbacks of teamwork is that it takes more time to make decisions. It requires the agreement of all members to make any decision. So, quick decision is not possible at the time of emergency.

2. High Chance Of Conflict

There exists a chance of conflict and misunderstanding between the team members. Conflict among the employees decreases the efficiency, disturbs the working environment and hampers the smooth flow of operation.

3. May Create Challenge To The Management

It may become difficult for the management assign tasks properly to the team, to handle conflict effectively and to evaluate employees' performance fairly.

4. Demoralization Of Team

Possibility of demoralization is another disadvantage of teamwork. Unequal distribution of work, unequal participation in the job, difference in the interests and opinions of members and presence of conflict and misunderstanding may lead to demoralization.

5. Possibility Of Factionalism

Disputes and misunderstanding between the team members leads to factionalism in the workplace. Factionalism creates conflict which negatively affects the performance and productivity of the organization. 

Pros And Cons Of Teamwork In Short

Pros:

- It simplifies large and complex tasks into small pieces of works which helps to decrease the workload and burden of  team members . 

- It helps to improve productivity and quality of output.

- It increases interpersonal skills, motivation, morale and job satisfaction

- It provides learning opportunity to the members which helps to improve their skills and abilities.

- Because of higher motivation and job satisfaction, it helps to lower employee turnover rate.

Cons:

- There is a possibility of conflict and misunderstanding among the members and factionalism in the workstation.

-  It takes long time and effort to make decision

- It may be difficult for the management to maintain better discipline in the workplace.

- There will be a chance of personality clash among the team members. 

Benefits Or Advantages Of Planning

The main advantages of planning can be expressed as follows:

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.

4. It Is Influenced By External Factors

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