what are the importance and limitations of planning as a function of management
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Planning is a key function of any management or leadership. It is very difficult to achieve your goals without a plan. A company must decide what its goals are and management must decide how they will achieve these goals. Planning allows management to be prepared for most contingencies. Of course, the downside of planning is that there is less room for spontaneity and one cannot possibly plan for every possibility. Let's look at a car dealership as an example. A manager might plan for each employee to sell a specific number of cars. They may decide to appropriate funds to reward these employees for meeting their goals. This is a great way to meet sales goals, but this plan might have a downside. If another car dealership offers a sale, it might be difficult for the first dealership to compete because their plan is to reward their employees and not to discount their cars. Planning is necessary for many aspects of business other than just reaching major goals. A manager must plan how best to use his/her employees. Each employee must have a scheduled time to work and a specific job to do. These minor portions of business can have major consequences if they are not planned correctly. A restaurant that doesn't plan to have extra employees on a holiday can find themselves in trouble quickly. Planning is vital for many aspects of business.
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