Planning has vital importance in the management process.

Ans. This statement is True

1. Planning is the most basic or primary function of management. It precedes other functions because a manager plans before he acts.

2. Planning involves determining the objectives and selecting a course of action to achieve them.

3. Planning enables an organisation to cope with uncertainty and change the identity threats and opportunities. It provides sense of direction as all human efforts are directed to achieve goals.

4. Planning encourages innovation and creativity which are must for the growth and development of business.

5. It helps in interrelating all the activities and resources of an organisation as activities and efforts of various departments and divisions can be co – ordinated and harmonized with the help of overall plan.