Planning and Organizing: Definition and Importance of Planning (For CBSE, ICSE, IAS, NET, NRA 2022)

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  • Planning, organizing, staffing, directing, coordinating and controlling are the functions of management.
  • First two functions planning and organizing emphasizing:
    • Nature, importance and process of planning
    • Basic concepts of organizing including process of organizing, organisation structure, delegation and decentralization of authority.

What is Planning?

  • Planning refers to deciding in advance what is to be done and how it is to be done? It is a systematic way of deciding about and doing things in a purposeful manner.
  • For example, you decide in advance where to study and what to study (to go in for Business Studies and Accountancy or Physics and Chemistry) etc. and plan for the admission, transport arrangement and purchase of books and stationeries etc.
  • In the situation of business organisations and their management planning may be defined as the process of setting future objectives and deciding on the ways and means of achieving them.


“Planning is deciding in advance what is to be done in future. It involves the selection of objectives, policies, procedures and programs from among the alternatives” .

- M. E. Hurley

Importance of Planning

  • Reduces uncertainty, risk and confusion in operation.
  • Guides the decision making by the managers.
  • Helps in achieving coordination and facilitates control.
  • Planning with an element of flexibility makes the organisation adaptable.
  • Leads to economy and efficiency in operations.
  • Best methods are selected thus, reducing overlapping and wasteful activities.
  • Keeps the executive alive and alert.
  • To review the progress periodically and recast their strategies to meet the objectives.
Image Shows the Importance of Planning

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