CHAPTER-4
PLANNING
Planning is the fundamental function of management. it is the foundation on which other functions
like organizing, staffing, directing and controlling activities are based. Planning lays down objectives
and the steps necessary to achieve them. Planning is a continuous process. It is not exclusively the
function of top management. Every manger in the organization performs some planning
MEANING AND CONCEPT
Planning is deciding in advance what is to be done, when is to be done and by whom. It is a process
which involves thinking before doing. Forecasting is the essence of planning. Planning brides the gap
between where we are and where we want to go. Planning is closely connected with creativity and
innovation.
“Planning is deciding in the present what to do in the future” - Philip Kotler
“ Planning is deciding in advance what is to be done. It involves the selection of
objectives, policies, procedures and programmes from among alternatives” -
-M.E.Hurley
IMPORTANCE OF PLANNING
Planning is the first step in management. Planning is the foundation of most successful action of all
enterprises. An enterprise can activate its objective only with systematic planning. Planning is
important from the following perspectives
1. Planning provides directions:-The first step in planning is to fix objectives. These
objectives will give direction to the activities to be performed.
2. Planning reduces the risk of uncertainty:- Planning is always forward looking Uncertainty
and changes are inevitable and planning cannot eliminate them. But with the help of
planning an enterprise can predict the future events and make due provision for them.
3. Planning reduces overlapping and wasteful activities:-Planning determines the activities
of each departments and individuals. Planning enables unity of purpose and direction. Thus
useless and redundant activities are minimized or eliminated.
4. Planning promotes innovative ideas:- Planning is a process of thinking before doing.
Many new ideas come to the mind of a manager when he is planning. Thus it helps
innovative and creative thinking.
5. Planning facilitate decision making:-Planning helps in decision making by selecting the
best alternative among the various alternatives. Planning also involves forecasting of future
conditions. Thus planning guides decision making
Prepared By: JOHNSON KOSHY, HSST COMMERCE, GHSS KALLAR IDUKKI Page 1
, 6. Planning establishes standard for controlling:-It is said that planning without control is
meaningless and control without planning is blind. Planning provides the basis for control.
Through planning, management lays down standards of performance. If the actual
performance is not as per standard, the management should take corrective action. Hence
planning facilitate controlling
*** Planning bridges the gap between the present and future
FEATURES/ NATURE/ CHARACTERITICS OF PLANNING
The following are the important characteristics of planning
1. Planning is goal oriented:- Planning involves selecting the objectives and developing
steps necessary to achieve them. Unless objectives are known a manager cannot do
any planning
2. Planning is the primary function of management( Primacy of management)
It is the primary function of management because all other functions are performed within the
framework of plan drawn. Without planning, there is nothing to organize, no one to coordinate
and no need to control. Thus planning lays the foundation for other managerial function.
3. Planning is pervasive:-Planning is required at all levels of management as well as in
all departments of the organization. Managers at the top level prepare long-term plans
Prepared By: JOHNSON KOSHY, HSST COMMERCE, GHSS KALLAR IDUKKI Page 2
PLANNING
Planning is the fundamental function of management. it is the foundation on which other functions
like organizing, staffing, directing and controlling activities are based. Planning lays down objectives
and the steps necessary to achieve them. Planning is a continuous process. It is not exclusively the
function of top management. Every manger in the organization performs some planning
MEANING AND CONCEPT
Planning is deciding in advance what is to be done, when is to be done and by whom. It is a process
which involves thinking before doing. Forecasting is the essence of planning. Planning brides the gap
between where we are and where we want to go. Planning is closely connected with creativity and
innovation.
“Planning is deciding in the present what to do in the future” - Philip Kotler
“ Planning is deciding in advance what is to be done. It involves the selection of
objectives, policies, procedures and programmes from among alternatives” -
-M.E.Hurley
IMPORTANCE OF PLANNING
Planning is the first step in management. Planning is the foundation of most successful action of all
enterprises. An enterprise can activate its objective only with systematic planning. Planning is
important from the following perspectives
1. Planning provides directions:-The first step in planning is to fix objectives. These
objectives will give direction to the activities to be performed.
2. Planning reduces the risk of uncertainty:- Planning is always forward looking Uncertainty
and changes are inevitable and planning cannot eliminate them. But with the help of
planning an enterprise can predict the future events and make due provision for them.
3. Planning reduces overlapping and wasteful activities:-Planning determines the activities
of each departments and individuals. Planning enables unity of purpose and direction. Thus
useless and redundant activities are minimized or eliminated.
4. Planning promotes innovative ideas:- Planning is a process of thinking before doing.
Many new ideas come to the mind of a manager when he is planning. Thus it helps
innovative and creative thinking.
5. Planning facilitate decision making:-Planning helps in decision making by selecting the
best alternative among the various alternatives. Planning also involves forecasting of future
conditions. Thus planning guides decision making
Prepared By: JOHNSON KOSHY, HSST COMMERCE, GHSS KALLAR IDUKKI Page 1
, 6. Planning establishes standard for controlling:-It is said that planning without control is
meaningless and control without planning is blind. Planning provides the basis for control.
Through planning, management lays down standards of performance. If the actual
performance is not as per standard, the management should take corrective action. Hence
planning facilitate controlling
*** Planning bridges the gap between the present and future
FEATURES/ NATURE/ CHARACTERITICS OF PLANNING
The following are the important characteristics of planning
1. Planning is goal oriented:- Planning involves selecting the objectives and developing
steps necessary to achieve them. Unless objectives are known a manager cannot do
any planning
2. Planning is the primary function of management( Primacy of management)
It is the primary function of management because all other functions are performed within the
framework of plan drawn. Without planning, there is nothing to organize, no one to coordinate
and no need to control. Thus planning lays the foundation for other managerial function.
3. Planning is pervasive:-Planning is required at all levels of management as well as in
all departments of the organization. Managers at the top level prepare long-term plans
Prepared By: JOHNSON KOSHY, HSST COMMERCE, GHSS KALLAR IDUKKI Page 2
