The document discusses the concepts of planning, including definitions, nature, importance, problems, effectiveness, principles, types, and process. Planning is defined as determining objectives and policies to achieve goals, and providing a rational approach. It is goal-oriented, continuous, forward-looking, and involves selecting means to achieve objectives. Planning focuses attention on objectives, reduces uncertainty, provides direction, and facilitates coordination and control. Effective planning requires clear objectives, management support, participation, and integration of plans. Types of planning include group, departmental, and corporate planning according to different time spans and organizational levels.

1. PLANNING
Koontz & O’Donnell, --- Planning involves selecting enterprise objectives, departmental
goals and programmes and determining the ways of reaching them. Planning thus
provides a rational approach.
Haimann --- Planning is the function that determines in advance what should be done. It
consists of selecting the enterprise objectives, policies, programmes, procedures and
other means of achieving these objectives.
Nature of Planning:
1. Planning is goal oriented.
2. Planning is a primary function.
3. Planning is all pervasive.
4. Planning is an intellectual or rational process.
5. Planning is a continious process.
6. Planning is forward looking.
7. Planning involves choice.
8. Planning is an integrated process.
9. Planning is directed towards efficiency.
Importance of Planning:
1. Focuses attention on objectives and results.
2. Reduces uncertainty and risk.
3. Provide sense of direction.
4. Encourages innovation and creativity.
5. Helps in coordination.
6. Guides in decision-making.
7. Provides a basis for decentralization.
8. Provides efficiency in operation.
9. Facilitates control.
Problems in Planning:
1. Lack of accurate information.
2. Time and Cost.
3. Inflexibility.
4. Resistance to change.
5. Lack of ability to plans.
6. False sense of security.
7. Environmental Constraints.
Making Planning Effective:
1. Climate for Planning.
2. Clear-cut Objective.
3. Management Information System.
4. Careful premising.
5. Top Management Support.

2. 6. Participation in Planning.
7. Sound Communication.
8. Integration of Plans.
9. Open Systems Approach.
10. Cost Benefit Analysis.
Principles of Planning:
1. Principle of contribution to objectives.
2. Principle of efficiency of plans.
3. Principle of primacy of planning.
4. Principle of Planning Premises.
5. Principle of Policy Framework.
6. Principle of timing.
7. Principle of alternatives.
8. Principle of Limiting Factors.
9. Principle of commitment.
10. Principle of flexibility.
11. Principle of navigational change.
12. Principle of competitive strategies.
TYPES OF PLANNING:
1. Group or Sectional Planning.
2. Departmental or Divisional Planning.
3. Corporate Planning.
According to Time-Span:
1. Long Range Strategic Planning.
2. Medium term or Intermediate Planning.
3. Short term Operational Planning.
Steps in Corporate Planning Process:
1. Identify Goals.
2. Develop Planning Premises.
3. Determine alternative Courses of action.
4. Evaluate the alternatives.
5. Select a course of action.
6. Formulate derivative plans.
7. Integrate different plans.
8. Implement plans.
9. Review and revise plans.

3. Planning Premises:
Planning is done for future, which is uncertain; therefore certain assumptions are made
about the future environment. These assumptions are known as planning premises.
Koontz and O’Donnell --- Planning premises are the anticipated environments in which
plans are expected to operate. They include assumptions or forecasts of the future and
known conditions that will effect the course of plans, such as prevailing policies and
existing company plans that control the basic nature of supporting plans.
Planning Premises Classification:
1. External and Internal Premises.
2. Tangible and Intangible Premises.
3. Controllable and Uncontrollable Premises.