Question

Identify the incorrect statement with respect to the importance of planning function of management :

• A. Planning provides directions by stating in advance how work is to be done.
• B. Planning eliminates uncertainty by looking ahead and anticipating changes.
• C. Planning facilitates decision making by making a choice among various alternative courses of action.
• D. Planning promotes innovative ideas as new ideas can take the shape of concrete plans.

Hint:

Planning reduces the risk of uncertainty but cannot remove it fully, because nobody can predict the future perfectly. So the statement that it eliminates uncertainty is wrong.

Answer 1

The Correct Option is B

Step 1: Understand the question:
We need the statement that is NOT correct about the importance of planning. So three options are true and one is false.
A common trap is the claim that planning removes uncertainty completely.

Step 2: Check option (1):
Planning states in advance what is to be done, when and how. This gives direction to all the employees. So option (1) is correct and not the answer.

Step 3: Check option (2):
Planning looks ahead and tries to guess the changes that may come. This reduces uncertainty, but it cannot eliminate it, because the future can never be predicted fully.
The word eliminates makes the statement wrong. So option (2) is the incorrect statement and is the answer.

Step 4: Check option (3):
Planning requires choosing among alternative courses of action. Thus it helps decision making. Option (3) is correct.

Step 5: Check option (4):
Planning is a base for new ideas, since a new idea can be turned into a concrete plan. So it promotes innovation. Option (4) is correct.

Final Answer:
The incorrect statement is option (2), because planning reduces uncertainty but cannot eliminate it.