Importance of planning function of management is as follows:
(i) Reducing the risk of uncertainities: There are many risks and uncertainties involved in any business. Planning can enable foreseeing such risks and uncertainties by considering necessary precautions for the business. Accordingly, planning can reduce costs of damage to life and property.
(ii) Promotes innovative ideas: It enables creativity and innovation among managers and subordinates who can come up with new ideas for improving efficiency in business. Planning involves identifying the best alternatives out of many options that also encourages satisfaction among the employees and eventually success to the organisation.
(iii) Maximum utilisation of resources: Planning makes availability of resources to be utilised optimally by businesses. It helps in reducing wastage of resources and avoids duplication of efforts thus, increasing efficiency and effectiveness of the business' operations.