Define the term planning and explain the importance of planning.(CLASS XII) (OCM)

Planning is the basic function of management. Every function of management is based on planning. Importance of Planning: 

1) Helps to set clear objectives: Planning is concerned with setting objectives, and targets, and formulating plans to achieve them. 

2) Provides a path of action: Planning ensures that the goals or objectives are clearly stated. They act as a guide and they provide direction for doing the right things at the right time with right way. 

 3) Planning improves performance: It helps managers to improve future performances of employees by establishing objectives and selecting a course of action.. 

4) Minimizes the risk: Planning is based on the forecasting technique. It is the process of looking into the future and anticipating future changes. 

 5) Planning leads to optimum utilization of resources: Organizational plans are prepared by taking into consideration the availability of resources and proper allocation of resources for various activities. 

 6) Helps in decision making: There are various alternatives in front of the management. For achieving goals planning helps the management to select the best alternative by considering all positive and negative outcomes of all the alternatives.