Importance of planning:
(i) Planning provides direction: Planning is directed towards achieving the objectives of an enterprises. It ensures that goals are clearly defined so that they act as a guide for what actions are to be taken and in which direction.
(ii) Promote innovative ideas: Planning is an intellectual process. It encourage logical and systematic thinking and require continuous application of innovative ideas.
(iii) Planning establishes standards for controlling: Plans provide the standards against which the actual performance is compared. Without plans, managers cannot evaluate the performance of their subordinates. Deviation of actual results from the standards indicates the nature of corrective actions needed. Therefore, planning may be said to provide the basis for control.