Accounting technicians scheme west africa
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| Principle of objectives Since objectives are the basis for planning, they should be clear, specific, measurable and unambiguous. They should be understood and accepted by all the organisational members. 16. Principle of primacy of planning Planning is prerequisite to other managerial functions. It should be effectively done so that other functions of management also contribute to the overall organisational goals. A.5 Importance of planning (a). Minimizes Risk and Uncertainty In today’s highly complex business environments, organisations cannot afford to take decisions intuitively. By providing a more rational, fact-based procedure for making decisions, planning allows managers and organisation to minimize risk and uncertainty. (b) Enables Managers to face Increasing Competition Today, a business concern has to face competition not only in the domestic market but also in the international markets. To face such fierce competition, proper planning in all functional areas is a must. (c) Enables Managers to Keep Pace with Complex Technological Changes Technology is changing rapidly and the existing machines and processes are becoming obsolete at a fast rate. With proper planning, it is possible to keep pace with technological changes to the advantage of the organisation. (d) Leads to Success Planning helps the organisation to perform better and achieve success. Organisations that plan have a higher probability to succeed than those which do not plan. (e) Focuses on Goals Planning helps an organisation to focus all its activities and resources on selected goals. (f) It Facilitates Control In planning, the manager sets goals and devises action plans to achieve them. Plans, thus become the standard the standard or benchmarks against which performance is compared and control is exercised in case of any difference between the planned and actual performance. Download 3.37 Mb. Share with your friends:
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