● It helps managers to improve future performance, by establishing objectives and selecting a course of action, for the benefit of the organisation.

● It minimises risk and uncertainty, by looking ahead into the future.

● It facilitates the coordination of activities. Thus, reduces overlapping among activities and eliminates unproductive work.

● It states in advance, what should be done in future, so it provides direction for action.

● It uncovers and identifies future opportunities and threats.

● It sets out standards for controlling. It compares actual performance with the standard performance and efforts are made to correct the same.

Planning is present in all types of organisations, households, sectors, economies, etc.

We need to plan because the future is highly uncertain and no one can predict the future with 100% accuracy, as the conditions can change anytime. Hence, planning is the basic requirement of any organization for the survival, growth and success.