Objectives of Planning:
Planning facilitating the fulfillment of objectives: The aim of the planning is to facilitate the achievement of objectives. It focuses on the organization’s objectives. It tells the organization and the objectives of every department of the enterprise as a whole. Planning helps the personnel to see the enterprise in its entirety and sees how his work contributes to its ultimate goals. The scheme managers compel them to revise their plans when necessary to consider the future and achieve the objectives.
The economy in operation ensures: Since the plan emphasizes efficient operation and continuity, it reduces costs and achieves economical operations. Integrated group efforts are due to even the flow of work and deliberate decision making.
Prevents control: Control involves activities that are done to suit the events. Schemes serve as standards of performance. Control wants to compare actual performance with defined standards. Therefore, control can not be used without plans.
Provision for future contingency: Planning is needed because future is uncertain. The planning enables the future to look into the future and find suitable alternative courses of action. Planning management helps in making a clear idea about the future and preparing suitable programs for action. Even when the future is highly fixed, planning is necessary to determine the best course of action.
Facilitates optimal utilization of resources: Various resources which are relevant to the organization, such as money, physical resources, manpower, technical information, etc. are large and inadequate due to the demand of competing organizations and There are alternative uses. This organization needs to make the best possible use of resources. The plan facilitates the optimum utilization of resources available.
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Modernization: Modernization implies the various structural and institutional changes in economic activities that can transform the feudal and colonial economy into a progressive and modern economy. The important component of modernization is the development of a diversified economy that produces different types of goods. This requires establishing different types of industries.
It also refers to the advancement of technology. There is no doubt that some technical progress has taken place in agriculture, energy, etc. But in the current context, this is the real threat to the planning objective. The country is facing an unemployment problem and, therefore, poverty. But modernization will definitely arrest employment generation activities. Therefore, the struggle between modernization and the objectives of unemployment and poverty alleviation emerged.
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Financial self-sufficiency: Self-reliance, or self-reliance for that matter, refers to the elimination of external aid. In other words, it means zero foreign aid. India is usually a dependent economy. It is used for import of huge food grains, fertilizers, raw materials, and industrial machinery and equipment. But this objective could not be compiled before the start of the fourth plan. The basic purpose of the fifth plan was to achieve self-sufficiency.
In order to achieve this goal, the objective is to increase the production of food grains, essential commodities and raw materials and increase the level of exports. Emphasizing the increase in exports, the scheme emphasized the need for the establishment of imported substation industries as an important aspect of economic self-sufficiency.