· Facilitates opportunity analysis and presents an awareness of the external environment
· Minimizes cost as it takes into account all the contributing and limiting factors
· Increases efficiency
· Refines culture of an organization
· Provides a good direction
· Also establishes several measures of control
· Elicits commitment
STEPS TO MAKE PLANNING EFECTIVE
1. Every organization should have a separate planning department. A corporate planning department will take care of all the functions of an organization under one heading.
2. Planning must be all pervasive and even the work force at the bottom level should understand the importance of planning and the planning perspective of the management.
3. The goals must be verifiable and clear
4. Give managers adequate tools and the freedom to trial and error
5. The long term and short term goals should be combined together to form a inter locked system and must be viewed as one big single network.
6. Goal setting must be practiced – participation by the employees must be made compulsory
7. A small idea could turn out into a big plan- don’t ignore suggestions from your subordinates and term them “silly.”