Benefits-Drawbacks

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

Benefits Or Advantages Of Leasing

The main advantages of leasing can be described as follows:

1. It Promotes Entrepreneurship

2. It Enhances Liquidity

Leasing saves huge amount of fund which increases liquidity of the firm. Saved fund can be used to fulfill working capital requirement or can be invested in other profitable activities.

3. It Provides Tax Benefit

A company can enjoy tax benefit because lease rental payments are operating expenses and deducted from taxable income. So, leasing saves costs.

4. Convenience Method Of Financing

Leasing is cheaper and convenience than other sources of financing. It does not require various steps and formalities like borrowing loan from banks and financial companies.

5. Suitable For Small And New Business

Leasing is beneficial for small and newly established business firms because it helps to acquire assets without huge capital expenditure and formalities.

6. Provides Protection Against Obsolescence

Another advantage of leasing is that it avoids the risk of obsolescence. Lease agreement is beneficial for lessee (user of asset) because he does not need to bear the risk of obsolescence during the leasing period.

7. Flexible Source Of Financing

Lease rentals and period can be structured, changed or terminated with the mutual understanding between lessor and lessee. So, it is flexible than other sources of long term financing.

8. Not Affected By Inflation

Another notable advantage of leasing is that lease rental is not affected by inflation. Lessee pays same amount of rental payments till the end of the agreement.

Drawbacks Or Disadvantages Of Leasing

Some of the major disadvantages of leasing can be described as follows:

1. Decreases The Return On Equity

Lease rental is deducted from the net income of the company. So, it reduces return on the equity shares.

    

       Also Read: 

Advantages And Disadvantages Of Hire Purchase

Features Of Leasing

2. No Ownership

Leasing does not provide ownership of asset to the user (lessee). Such assets cannot be pledge to obtain loan from banks and financial institutions.

3. It May Increase Cost

Although lessee is not a owner of the asset, he is responsible for repairing and maintenance . So, it increases the cost for the company.

4. No Alteration

Another disadvantages of leasing is, user cannot alter the asset in any situation. If the asset is bought, a company can modify it or make changes to improve its efficiency. But in case of , assets should not be altered by user.

Pros And Cons Of Leasing In Short

Pros:

- It helps to improve the liquidity of the firm

- It is a convenience, flexible and cheaper method of long term financing

- It saves costs because lease rentals are tax deductible

-  It saves the lesser from the risk of obsolescence

Cons:

- It reduces the return of equity shareholders

- It is costlier than debt financing

- Ownership of the asset remains with lessor

The major benefits or advantages of job satisfaction can be highlighted as follows:

1. Promotes Employee Motivation

The main advantage of job satisfaction is that it creates positive feeling towards jobs. It minimizes stress and anxiety which encourages employees to perform better. So, there is direct relation between job satisfaction and employee motivation. It means satisfied employees are always motivated to perform their tasks properly and efficiently.

2. Lowers Employee Absenteeism

Employee absenteeism is very serious concern for many organizations. Stress, harassment in the workplace, lack of motivation are major causes of absenteeism. Job satisfaction helps to eliminate it by inspiring employees and by creating proper working environment .

3. Helps To Increase Production

Because of motivation and better working condition employees can boost their performance. Better performance leads to increase in the productivity of the firm.

4. Minimizes Supervision Cost

Satisfied and dedicated employees become loyal towards the organization. They are self motivated and try to do their best to achieve the goals of the organization. There is a less chance of fraud and mistake in the operational activities. So, more supervision and monitoring is not required and supervision costs can be reduced.

5. Promotes Employee Retention

Skilled, experience and loyal employees are valuable assets for the company. If they are not properly behaved they can leave the organization at any time. But job satisfaction helps to minimize employee turnover  and encourages retention by providing better working environment and by fulfilling their required needs and expectations. Therefore, employee retention is another notable advantage of job satisfaction.

6. Minimizes Re-hiring Cost

As we know that job satisfaction promotes employee retention, it helps to reduce recruitment and re-hiring costs related to advertisement , recruitment , interview, selection etc. It saves both cost and effort of the management.

 Benefits Or Advantages Of Job Enrichment

The main advantages of job enrichment can be explained as follows:

1. Provides Learning Opportunity

Job enrichment is a vertical expansion of tasks and duties that increases the responsibility and authority to existing employees. It helps them to learn managerial skills and knowledge.

2. Reduce Monotony And Boredom

It adds duties and responsibilities to workers that helps them to divert their mind from day-to-day routine tasks. It helps to minimize monotony and boredom.

3. Less Burden To The Management

In job enrichment, jobs of to management are shared with middle and lower lever employees. So it reduces the workload of managers and they can give time for other important organizational activities.

4. Employee Motivation And Satisfaction

It enhances employees' skill, provides learning opportunity and helps to gain new experience. So, employees are motivated to improve their performance. Employee motivation leads to job satisfaction.

5. Increased Productivity

Motivation, better working environment and job satisfaction helps to boost employees performance. Increase in performance leads to increase in productivity and profitability of the organization.

6. Lower Rate Of Employee Turnover

Motivated and satisfied employees become loyal and do not want to leave the company. So, job enrichment lowers the rate of employee turnover.

7. Suitable For

Job enrichment is suitable for semi-skilled and skilled manpower. They can learn managerial skills and can develop decision making power.

Drawbacks Or Disadvantages Of Job Enrichment

The main disadvantages of job enrichment can be explained as follows:

1. It Increases Workload

Although job enrichment reduces the burden of to level management by sharing jobs with other employees, it increases the workload of lower level managers and subordinates. Employees may face difficulties to perform more tasks in limited time.

2. Costly Affair

It requires special skill and knowledge to perform increased jobs because jobs are expanded vertically. So, the organization needs extra cost and effort to conduct training programs and other development activities. 

3. More Supervision And Control

Normal employees have to perform challenging tasks. So, more monitoring and supervision and control is needed. 

     Also Read: 

Advantages And Disadvantages Of Job Rotation

Advantages And Disadvantages Of Job Enlargement

Advantages Of Job Satisfaction

4. Not Possible For All Jobs

Job enrichment is not possible for some jobs that require special knowledge and skills. For example, normal worker cannot perform the job technicians and machinery works.

5. Poor Performance

Because of workload and lack of skill, employees face difficulties to handle given task properly. It may decrease their performance which leads to decrease in productivity.

6. Not Suitable For

Job enrichment is not suitable for unskilled employees because they cannot perform challenging jobs due to the lack of education and skills.

Pros And Cons Of Job Enrichment In Short

Pros:

- It reduces the work burden of top level management

- It helps employees to enhance their skills and gain knowledge

- It reduces boredom, monotony and absenteeism 

- It improves employees motivation and leads to job satisfaction

- It improves the productivity of the firm

- It helps to create good environment in the workplace

Cons:

- It increases the work load of lower level employees

- Employees' performance may be decreased because of overburden

- It requires more training, supervision and monitoring costs

- It is not suitable for all kinds of jobs

 Benefits Or Advantages Of Job Enlargement

The main advantages of job enlargement can be studied as follows:

1. Proper Utilization Of Human Resources

Because of enlarged tasks and responsibilities employees can use their skills and abilities (both mental and physical) more efficiently. So, job enlargement ensures better utilization of human resources in the organization.

2. Minimization Of Boredom

In job enlargement, roles and responsibility are added to the existing job level. Increased duties and tasks helps to reduce monotony, boredom and fatigue among the employees.

3. Employee Motivation

Additional responsibilities and variety of activities help workers to improve their skills, knowledge, talents and experience . It motivates them for better performance.

4. Learning And Growing Opportunity

Variety of tasks provide learning opportunity to the employees. It is very helpful in personal growth and career development.

5. Responsible And Accountable

Because of the expansion of job, employees become more responsible and accountable. It also helps to maintain proper discipline in the organization.

6. Job Satisfaction

Job enlargement minimizes boredom, ensures proper utilization employees' talent and knowledge, increases motivation and provides learning opportunity, it helps to increase job satisfaction among the workers. Job satisfaction leads to increase in productivity and profitability of the firm.

7. Less Operation Cost

It provides additional jobs to the existing employees. So, more tasks can be completed by suing less manpower. It helps to reduce operational costs in the organization.

8. Suitable For

Job enlargement is suitable for unskilled and semiskilled workers to boost their performance.

Drawbacks Or Disadvantages Of Job Enlargement

The main disadvantages of job enlargement can be described as follows"

1. Workload 

Job enlargement increases workload but level of responsibility remains the same which may create frustration among employees.

2. Lower Efficiency And Quality

Job enlargement does not encourage specialization and division of labor. It only increases jobs and roles. Because of less specialization and overload of tasks, workers' efficiency and quality of output may decrease.

It takes time to handle more tasks and to adjust with new system. So, it may reduce productivity for a short period of time.

       Also Read: 

Advantages And Disadvantages Of Job Enrichment

Advantages And Disadvantages Of Job Rotation

Advantages Of Job Satisfaction

4. More Training And Development Costs

Because of increased tasks, it may require more training and development programs to enhance employees' performance. So, it is a costly method of job design.

5. Additional Pay

Workers may argue for additional pay for enlarged jobs. It may create misunderstanding and conflict between employees and management.

6. Not Suitable For

It is a horizontal enlargement of tasks which does not provide additional authority and responsibility.. So, job enlargement is not suitable for skilled and specialist manpower.