(a) What is Planning? (b) What are the benefits of planning in business management? (c) Mention four functions of the personnel department of a business est...

Answer Details

(a) What is planning?

Planning is the management function of deciding in advance what is to be done, how it is to be done, when it is to be done and who is to do it, in order to achieve stated objectives. It involves setting goals, forecasting future conditions, and choosing the best course of action from among alternatives to reach those goals. It is the first and most basic function of management upon which all other functions depend.

(b) Benefits of planning in business management

1. It gives direction: Planning sets clear objectives and shows the path to follow, so that everybody in the organisation works towards the same goal.
2. It reduces uncertainty and risk: By forecasting the future, planning helps managers to anticipate problems and prepare for them in advance.
3. It ensures efficient use of resources: Planning helps to allocate men, money, materials and machines properly, thereby avoiding waste.
4. It provides a basis for control: Plans set the standards against which actual performance is measured, making control possible.
5. It aids coordination: Planning harmonises the activities of different departments so that they work together smoothly.
6. It aids decision-making: It provides a framework within which sound decisions can be taken.

(c) Four functions of the personnel department

1. Recruitment and selection: It advertises vacancies, interviews applicants and employs suitable staff.
2. Training and development: It arranges training programmes to improve the skills and efficiency of employees.
3. Welfare and staff relations: It sees to the welfare of workers and maintains good relations between management and staff.
4. Wages, promotion and record-keeping: It handles wages and salaries, promotions, transfers, discipline and keeps records of all employees.

(Other valid functions: manpower planning, and handling of retirement, discipline and termination.)