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Planning As A Cost Saver

Planning is important because it makes for purposeful organization and activities, which in turn minimize cost. Deciding in advance what is to be done, how and by whom, where it is to be done, and when promotes efficient and orderly operations. All efforts are directed toward a desired result, haphazard approaches are minimized, activities are coordinated , and duplications are avoided. A minimum amount of time is needed for completion of each planned activity because only the necessary amount of work is done. Facilities are used to their best advantage, and guesswork is eliminated. Thus, planning by its very nature is cost-saving activity that no manager can afford to neglect.

Effective management demands optimal use of the organization's resources. As a supervisor you are entrusted with the management of both employees and physical resources of the department. You have to work with people and factors, such as space, equipment, tools and materials. How all these resources are utilized is your primary responsibility and the basis on which your managerial performance is judged.

Only by planning will you be able to make the best possible use of these resources.

Only by planning will you as the supercisor be able to bring out the best in your employees, the most valuable resource you have. Plans for the proper utilization of physical resources are also essential because of the capital investment that the organization has made in them. Even in the smallest department, the total investment in working space, equiment, tools, materials and suplies is substantial. Only by planning can all of these resources be utilized most effectively.

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