"Planning is an activity which enables managers to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes".

Importance of planning derived from above para is :

Planning reduces the risks of uncertainty

The correct answer is option (3) : Planning reduces the risks of uncertainty

Planning reduces the risks of uncertainty: Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.

Planning promotes innovative ideas: Since planning is the first function of management, new ideas can take the shape of concrete plans

Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals.

Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation