Question

Explain the following points of importance of planning :

(i) Planning provides directions

(ii) Planning reduces the risk of uncertainty

(iii) Planning reduces overlapping and wasteful activities

Hint:

Planning shows everyone the objective and the path, helps managers get ready for future changes, and fits the work of departments so that nothing is repeated.

Answer 1

Step 1: Understanding the question:
We have to explain three points on the importance of planning: it provides directions, it reduces the risk of uncertainty and it reduces overlapping and wasteful activities.

Step 2: Point 1 - planning provides directions (meaning):
A plan states the objectives and shows the way to reach them.
Employees know what is expected of them and where the firm is going.

Step 3: Point 1 - its benefit:
Everyone works with a common aim, and there is less confusion.
For example, if the plan states that the firm will cut delivery time to two days, every person in the supply chain works for that target.

Step 4: Point 2 - planning reduces the risk of uncertainty (meaning):
Planning needs managers to forecast the future and think about the possible events.
They can make ready for the changes that may come.

Step 5: Point 2 - its benefit:
Alternative plans can be kept ready, and the shock of sudden change is less.
Uncertainty cannot be removed but its effect can be reduced.
For example, a firm that expects a price rise can store raw material in advance.

Step 6: Point 3 - reduces overlapping and wasteful activities (meaning):
Planning brings coordination of the departments, as each one knows its part of the work.

Step 7: Point 3 - its benefit:
No work is done twice and nothing is left undone.
Time and money are saved. For example, if the plan decides who will handle customer complaints, two departments will not deal with the same case.

Final Answer:
Planning gives a clear direction, lowers the risk of an uncertain future and removes duplication and waste.