Organizational Planning

Organizational Planning

Importance of Organizational Planning

In the fast changing world, organizational planning became more important because of the numerous factors and the below mentioned factors highlighted the importance of planning;

Reduces business related risks

There are numerous risks that are associated with the modern business. Therefore, planning assist the managers to forecast these business related risks and to take necessary precautions to avoid these risks. Thus, in short, planning reduces risk.

Increases efficiency

It is all because of planning that optimum utilization of all the available resources become possible. Thus, it helps in reducing the wastage of critical resources and avoids their repetition. Similarly, planning's main aim is to provide highest returns at the lowest possible cost and thus increasing the overall efficiency.

Coordination done accordingly

Normally, in the organization, different department are inter-connected, therefore, proper coordination is required between them. Therefore, to share different plans with all departments is based on planning the coordination.

Gives the right direction

Direction is mainly based on providing proper information, appropriate instructions and assisting the subordinates towards the organizational goals. Therefore, providing direction cannot be done without proper planning because it demonstrate what to do, how to do and when to do.

Assists in decision making

A manager's job is to make different plans and from those plans he or she chose the best available plan. In doing this, planning provides a comfortable cushion to manager in decision making whether to go for which plan (Akrani, 2012).

Lean and Flexible Manufacturing

Lean manufacturing is about generating as much money as possible and thus streamlining the manufacturing process. However, in numerous cases, it has been witnessed that it limits the customer opinions. Whereas, on the other hand, flexible manufacturing is linked with meeting the customers demand and needs regardless of the efforts that applied in completing the tasks. In business, these two forms of manufacturing blended together to reap the benefits by fulfilling the customer desires.

In flexible manufacturing, customers are generally provided numerous options, when they go for selecting their products and thus giving them the option of customize versions of goods to actually meet their specifications (Schreiner & Media, 2013). Therefore, by allowing the customers for customize goods; firms generally create a situation in which they showed their responsiveness to certain needs. Whereas, in lean manufacturing, companies just offer one or two version of goods and generally do not go for customization and did not take ...