1. Planning promotes internal coordination: Planning helps in making possible the integrated and coordinated effort. This becomes possible because the goals and objectives are pre-determined and all the departments are conscious of the enterprise objectives and therefore take steps to achieve them within the stipulated time.
2. Planning facilities decision making: Decision making involves searching for various alternative courses of action evaluating them and selecting the best one. Planning facilitates this process. On the basis of planned targets, we can think about alternative courses of action. Evaluation, as well as a selection of the best alternative, is determined with reference to the target set. By predicting future conditions decisions can be taken with greater confidence. What is to be done and when, hasty decisions and haphazard action can be avoided.
3. Planning promotes creativity: A good planning system should encourage managers to devise new ways of doing things. It helps innovative and creative thinking among managers because they will think of many new things with planning. It is a process that will provide awareness for individual participation and will and courage and atmosphere of frankness which will help in achieving better results.