Final answer:
The benefit of planning in management does not include personal knowledge of individual managers. As a company grows and its strategy aligns with potential profits, less emphasis is placed on personal connections with management, with more focus on the availability of detailed company information.
Step-by-step explanation:
Planning in management is critical for a myriad of reasons, yet one benefit it does not offer is personal knowledge of individual managers. As a firm matures and its strategy is set to generate profits, extensive information about the company's products, revenues, costs, and profits becomes available. This reduces the importance of knowing managers on a personal level and allows outside investors like shareholders and bondholders who may not be familiar with the management team to still feel comfortable providing financial capital.
Essentially, formal planning creates a framework that guides the company towards its objectives, enabling it to forecast future issues and address them proactively. Moreover, planning can help align resources with set goals, ensure that stakeholders are working towards the same end, and increase efficiency by setting a direction for the firm's activities. However, while planning supports many aspects of a company's operation, it does not inherently result in a closer personal understanding of individual managers within the firm.