Planning is determination of organisational objectives and selection of best course of action for their attainment. It is the primary function of management that provides guidelines for achieving organisational goal.
The importance of planning are:
(i) Planning reduces the risk of uncertainty: Planning help the managers to look into the future, anticipate changes and plan accordingly and reducing the risks due to uncertainty.
(ii) Planning promotes innovative ideas: Thinking in advance gives managers the opportunities to discover new and better ideas and effective methods of performing an activity.
(iii) Planning facilitates decision making: The selection of best course of action after the evaluation of various alternatives, facilitates rational decision making.