7 Major Importance of Planning in Management

Importance of Planning

Planning is deciding in advance what to do and how to do it. It is one of the primary managerial functions.

Planning, therefore, involves setting objectives and developing an appropriate course of action to achieve organizational objectives.

When you see films and advertisements, you would have seen how an executive of an organization draws up plans and give powerful and confident presentations in boardrooms.

Are such plans really work in the real world? Does it improve clarity in minds of managers in enterprises? After all this stuff happens, why should we plan?

There are huge numbers of questions to which we should like to find answers.

Planning is important because it tells us where to go and how to accomplish organizational goals. It provides a map to go in the right direction and get rid of the risk of uncertainty by preparing from the augur.

There are one of major importance of planning are given below.

Let’s dive in.

7 Major Importance of Planning in Management

1. Efficient Use of Resources:

Scarcity is one of the primary reasons to create economics. Every human being or organization, rich and poor or large and small have scary resources.

Planning provides information about how to allocate the resources to achieve organizational objectives effectively and efficiently.

It helps to maximize the level of production with the best utilization of resources.

2. Provides Directions:

One of the biggest questions for a new start-up or an organization is how work is to be done. Planning is the angel for them, it provides direction for action.

It ensures that the goals or objectives are completed. They work like a guardian, to guide what actions should be taken and in which way.

If goals and purposes are well-defined then workers give their physical and mental power to focus on what the organization has to do and what they have to achieve those goals.

If there is no planning, workers will be working in different directions and the organization will not be able to accomplish their intended goals.

3. Reduces the Risks of Uncertainty:

Planning is not done for the past and present, it is always done for the future and the future is full of uncertainty.  

It is an action which helps a manager to look forward and evaluate the work-force activities.

When individuals and departments are working in following the path by managers, planning helps to deals with changes and uncertain events.

So, the risk of future uncertainties can be minimized.

4. Minimize Overlapping and Wasteful Activities:

Planning helps to individuals and departments are able to work in coordination.

It reduces overlapping duties and activities to achieve goals that are pre-determined. It helps in avoiding confusion and misunderstanding.

Planning makes clarity in decisions and activities to do work in a timely and smoothly without interruptions.

Unless and unnecessary activities are minimized or eliminated for smooth functioning.

5. Promotes Innovative Ideas:

We all know that planning is the foremost function of management. It helps to discover new ideas that can take part in pre-determined ideas.

It is one of the important functions to guide all future actions according to the organizational goals to grow and prosper of the company.

6. Simplify Decision Making:

To be a successful organization, decision making implies an important role. Decision making is ideal, planning is a tool to get there.

Planning helps the manager to take future-orientated decisions. Managers analyze every alternative and choose the right ones.

It involves in fixing targets and forecasting future conditions.

7. Make Standards for Controlling:

Planning provides the basis for controlling and coordinating. As the interdependence of controlling on planning and vice versa, controlling gives the extension of the process of planning.

Without planning within departments will not be possible to coordinate.

Likewise – If an equipped and non-equipped solider both were going in a battle. Who is more chance to win?  Equipped solider. Right. Because he was equipped with arms.

These are the essential importance of planning in management.


What did you think of this? Do I miss something? Come on! Let us know if you want to add something to the list.

Importance of Planning FAQ:

What are major importance of planning?

These are 7 major importance of planning (1) Efficient Use of Resources, (2) Provides Directions, (3) Reduces the Risks of Uncertainty, (4) Minimize Overlapping and Wasteful Activities, (5) Promotes Innovative Ideas, (6) Simplify Decision Making, (7) Make Standards for Controlling.

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