Q:

What is the importance of planning in management?

A:

Quick Answer

In the area of business management, planning allows managers to monitor employee activities to make sure they are focused and productive, helps to manage cash flow and performance and can mitigate potential harm from external factors, such as an economic downturn. As with other aspects of life, having a plan in place sets a framework for proper procedures and provides some amount of predictability. Managers adopt planning tools to set and reach short-term and long-term goals that ultimately help their organizations survive and thrive in the marketplace.

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What is the importance of planning in management?
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Full Answer

With a plan in place, managers can watch the activities of employees on a daily and long-term basis, which allows them to make sure employees are working together to achieve a common goal. Managers can monitor behavior to determine how much time people spend performing activities that are beneficial to the company, such as making sales and communicating with clients, versus using their time for nonproductive activities like reading emails and making personal phone calls. Planning also allows managers to remain aware of the status of their company’s finances as well as examine historical trends and predict future growth. Planning also helps managers prepare for potential future concerns, such as market decline, and identify ways to keep the company going during those critical times.

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