CBSE 2025, Set 1

Question

Explain the following points of importance of 'Planning' function of management:
(i) Planning provides directions.
(ii) Planning promotes innovative ideas.
(iii) Planning reduces the risk of uncertainty.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Planning provides directions:** By stating in advance how work is to be done, planning provides direction for action. If goals are well defined, employees are aware of what the organization has to do and what they must do to achieve those goals. Departments and individuals are able to work in coordination. **(ii) Planning promotes innovative ideas:** Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity. It forces managers to think creatively and look for new methods of working. **(iii) Planning reduces the risk of uncertainty:** Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. While changes and risks cannot be completely eliminated, their effects can be anticipated and managerial responses can be developed in advance.

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Business Studies > Principles And Functions Of Management > Planning

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