It defines the goals of an organization. It provides guidance about how to achieve objectives. It identifies key activities. It provides general strategy to decision makers on how to handle issues when they arise. It provides clear information. It helps one organization to maintain its peace and order. It helps in building discipline of employees. It provides a road map for day to day operations. It helps in achieving the goals and objectives of organization by the help of employees uniting together. It helps people to be consistent and it helps them to value their work or organization they are in.