✅Introduction

Planning is the first and most fundamental function of management. It involves setting objectives and deciding in advance the appropriate actions needed to achieve those objectives. It is goal-oriented, forward-looking, and provides a roadmap for all other managerial functions.

📌 Definition:
Koontz and O’Donnell define planning as:
“Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.”

🔹 Importance of Planning

• Provides direction to all managerial activities.

• Reduces risks and uncertainties.

• Facilitates coordination between departments.

• Ensures optimum use of resources.

• Helps in setting performance standards.

✅ Planning Premises

Planning premises are the assumptions about the future on which planning is based. These can be:

Types of Planning Premises:

📌 Purpose: To create realistic and achievable plans that align with expected future conditions.

✅ Process of Planning (Steps in Planning)

The planning process follows a logical and sequential set of steps:

1. Establishing Objectives

   • Define clear, measurable, and time-bound goals.

   • These objectives guide all planning efforts.

2. Developing Planning Premises

   • Identify and analyze assumptions, forecasts, and future conditions.

   • E.g., expected demand, political changes, inflation, etc.

3. Identifying Alternative Courses of Action

   • Explore all possible ways to achieve the objectives.

4. Evaluating Alternatives

   • Assess feasibility, costs, risks, and benefits of each option.

5. Selecting the Best Alternative

   • Choose the most suitable plan based on evaluation.

6. Formulating Derivative Plans

   • Develop sub-plans to support the main plan.

   • E.g., recruitment plan, marketing plan, financial plan.

7. Implementing the Plan

   • Assign tasks, allocate resources, and execute the plan.

8. Monitoring and Follow-up

   • Measure performance, compare with objectives, and adjust if necessary.

✅ Difference Between Planning and Forecasting