Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step.

It is a systematic activity which

determines when, how and who is going to perform a specific job. Planning
is a detailed programme regarding future courses of action. It is rightly said Well plan is half done.

Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective coordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.

According to Urwick, Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses.

Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.

According to Koontz & ODonell, Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between

where we are to, where we want to go. It makes possible things to occur
which would not otherwise occur.

Just as no two organizations are alike, so also their plans. It is therefore important

to prepare a plan keeping in view the necessities of the enterprise. A plan is an

important aspect of business. It serves the following three critical functions:

Helps management to clarify, focus, and research their business's or project's development and prospects.

Provides a considered and logical framework within which a business can develop and pursue business strategies.

Offers a benchmark against which actual performance can be measured and

reviewed.

A plan can play a vital role in helping to avoid mistakes or recognize hidden opportunities. Preparing a satisfactory plan of the organization is essential.

Planning helps in forecasting the future, makes the future visible to some extent. It bridges between where we are and where we want to go. Planning is looking ahead

CORPORATE PLANNING Top level Determines longterm objectives of org. as a whole Generates plans to achieve these objectives Future Oriented Integrated Measuring & controlling Performance FUNCTIONAL PLANNING

Undertaken for subfunctions within each major function Derived from Corporate Planning Segmental

STRATEGIC PLANNING

Sets longterm direction of org. which it wants to proceed in future Encompasses all functional areas of Business Involves analysis of environmental factors Period is a problem

Depends upon the type of Business and structure of the organisation What may be a longterm period of planning for one organisation may be a short period for others. Ideal planning period depends upon Commitment Principle: Longrange planning is not really planning for future decisions, but rather planning the future impact of todays decision.

OPERATIONAL PLANNING

Tactical/Shortterm Planning

Aimed at sustaining the org. in its production and distribution of current products
and/or services to existing markets

Undertaken out of strategic planning.

Range of choice

Environment

Primacy

Level of formulation

LONG TERM PLANNING

Strategic in Nature Involves, generally, 35 yrs

Involves analysis of environmental factors

SHORT TERM PLANNING

Operational in nature Involves 6 months1 yr Aimed at sustaining organisation in its production and distribution of current products and/or services to existing market.