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12079 Delegation and Decentralization

Basis Delegation Decentralization Meaning Managers delegate some of their function and authority to their subordinates. Right to take decisions is shared by top management and other level of management. Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. Scope is wide as the decision making is shared […]

10547 Orientation and Placement

Once the candidates are selected for the required job, they have to be fitted as per the qualifications. Placement is said to be the process of fitting the selected person at the right job or place, i.e. fitting square pegs in square holes and round pegs in round holes. Once he/she is fitted into the […]

9873 Importance of Delegation

Delegation of authority is a process in which the authority and powers are divided and shared amongst the subordinates. When the work of a manager gets beyond his capacity, there should be some system of sharing the work. This is how delegation of authority becomes an important tool in organization function. Through delegation, a manager, […]

8770 Planning Function of Management

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is rightly said “Well plan is half […]

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  1. Planning facilitates management by objectives.

    1. Planning begins with determination of objectives.
    2. It highlights the purposes for which various activities are to be undertaken.
    3. In fact, it makes objectives more clear and specific.
    4. Planning helps in focusing the attention of employees on the objectives or goals of enterprise.
    5. Without planning an organization has no guide.
    6. Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives.
    7. Therefore, planning brings order and rationality into the organization.

  2. Planning minimizes uncertainties.

    1. Business is full of uncertainties.
    2. There are risks of various types due to uncertainties.
    3. Planning helps in reducing uncertainties of future as it involves anticipation of future events.
    4. Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events.
    5. Therefore with the help of planning, uncertainties can be forecasted which helps in preparing standbys as a result, uncertainties are minimized to a great extent.

  3. Planning facilitates co-ordination.

    1. Planning revolves around organizational goals.
    2. All activities are directed towards common goals.
    3. There is an integrated effort throughout the enterprise in various departments and groups.
    4. It avoids duplication of efforts. In other words, it leads to better co-ordination.
    5. It helps in finding out problems of work performance and aims at rectifying the same.

  4. Planning improves employee’s moral.

    1. Planning creates an atmosphere of order and discipline in organization.
    2. Employees know in advance what is expected of them and therefore conformity can be achieved easily.
    3. This encourages employees to show their best and also earn reward for the same.
    4. Planning creates a healthy attitude towards work environment which helps in boosting employees moral and efficiency.

  5. Planning helps in achieving economies.

    1. Effective planning secures economy since it leads to orderly allocation ofresources to various operations.
    2. It also facilitates optimum utilization of resources which brings economy in operations.
    3. It also avoids wastage of resources by selecting most appropriate use that will contribute to the objective of enterprise. For example, raw materials can be purchased in bulk and transportation cost can be minimized. At the same time it ensures regular supply for the production department, that is, overall efficiency.

  6. Planning facilitates controlling.

    1. Planning facilitates existence of certain planned goals and standard of performance.
    2. It provides basis of controlling.
    3. We cannot think of an effective system of controlling without existence of well thought out plans.
    4. Planning provides pre-determined goals against which actual performance is compared.
    5. In fact, planning and controlling are the two sides of a same coin. If planning is root, controlling is the fruit.

  7. Planning provides competitive edge.

    1. Planning provides competitive edge to the enterprise over the others which do not have effective planning. This is because of the fact that planning may involve changing in work methods, quality, quantity designs, extension of work, redefining of goals, etc.
    2. With the help of forecasting not only the enterprise secures its future but at the same time it is able to estimate the future motives of it’s competitor which helps in facing future challenges.
    3. Therefore, planning leads to best utilization of possible resources, improves quality of production and thus the competitive strength of the enterprise is improved.

  8. Planning encourages innovations.

    1. In the process of planning, managers have the opportunities of suggesting ways and means of improving performance.
    2. Planning is basically a decision making function which involves creative thinking and imagination that ultimately leads to innovation of methods and operations for growth and prosperity of the enterprise.

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