Q13
1 markMCQSection A

Identify the incorrect statement with respect to the importance of planning function of management :

Planning
Importance of Planning

Options

(A)Planning provides directions by stating in advance how work is to be done.
(B)Planning eliminates uncertainty by looking ahead and anticipating changes.
(C)Planning facilitates decision making by making a choice among various alternative courses of action.
(D)Planning promotes innovative ideas as new ideas can take the shape of concrete plans.
Official Answer

The incorrect statement is (B) Planning eliminates uncertainty by looking ahead and anticipating changes.


Reason: Planning only reduces the risks of uncertainty by anticipating change — it can never fully eliminate uncertainty, because the future remains unpredictable. The word 'eliminates' makes the statement wrong.

importance of planningreduces uncertaintydoes not eliminateprovides directionfacilitates decision makingpromotes innovationincorrect statementrisk of uncertainty

Marking Scheme

  • 11 mark: correctly identifying (B) as the incorrect statement.
  • 2No marks for selecting a true statement.

Hint

One statement uses an absolute word ('eliminates') that planning can never truly do.

Quick Oral Answer

Statement B is incorrect because planning does not eliminate uncertainty — it only reduces the risks of uncertainty by anticipating changes and preparing for them.

Analysis & Explanation

This is a 'find the wrong statement' question testing the exact wording of planning's importance points.


The trap word — 'eliminates'

NCERT states 'Planning reduces the risks of uncertainty', NOT 'eliminates'. Planning helps managers look ahead and prepare, but uncertainty can only be minimised, never removed.


Why the other statements are correct

  • (A) Provides direction: True — planning tells everyone in advance what to do and how, giving unified direction.
  • (C) Facilitates decision making: True — planning involves choosing the best among alternative courses of action.
  • (D) Promotes innovative ideas: True — planning is a thinking process where new, creative ideas can be developed into concrete plans.

Exam trap: Watch absolute words like 'eliminates', 'guarantees', 'ensures success'. Planning does none of these — it only reduces risk and improves the chances of success.

Common Mistakes

  1. 1Missing the word 'eliminates' and treating statement B as correct — planning only reduces, never eliminates, uncertainty.
  2. 2Wrongly rejecting statement D, though promoting innovative ideas is a genuine importance point of planning.
  3. 3Confusing 'provides direction' with 'reduces overlapping activities' and marking A as incorrect.

Interesting Facts

NCERT lists the importance of planning as: provides directions, reduces the risks of uncertainty, reduces overlapping and wasteful activities, promotes innovative ideas, facilitates decision making and establishes standards for controlling.

Because the future is inherently uncertain, even the most detailed plans can fail — one of the limitations of planning is that it may not work in a dynamic environment.

Spotted a mistake or something unclear?

Tell us — we fix reported answers fast.

Frequently Asked Questions

Why does planning only reduce and not eliminate uncertainty?

The future is unpredictable — competitors, technology, government policy and consumer tastes can all change unexpectedly. Planning helps managers anticipate and prepare, lowering the risk, but it cannot guarantee those changes away, so uncertainty is reduced, not eliminated.

What are the main points of importance of planning?

Planning provides direction, reduces the risks of uncertainty, reduces overlapping and wasteful activities, promotes innovative ideas, facilitates decision making and establishes standards for controlling. Absolute claims like 'eliminates uncertainty' or 'guarantees success' are not correct.