Planning is the intellectual process of determining a course of action based on purpose and knowledge, involving various types such as strategic, functional, formal, and informal planning. It requires clearly defined objectives, a review mechanism, and coordination of short and long-term plans. Despite its limitations, successful planning is essential for organizational success, as it encompasses the formulation of objectives, evaluation of alternatives, and adjustment to internal and external premises.

1. PLANNING AND PLANNING
PREMISES

2. WHAT IS PLANNING?
According to Knootz,
Planning is the intellectual process that requires
conscious determination of course of action and taking
decision on the basis of purpose, knowledge and
considered estimates.

3. FEATURES/PURPOSE OF
PLANNING
 Prioritizing
 Determining task and resource
 Scheduling time for completion

4. ESSENTIALS OF PLANNING SYSTEM (GIVEN
BY MURPHY)
• Clearly defined objective
• Clearly identified assumptions
• Rational appropriate and comprehensive
• Simple
• Flexible

5.  Time bound
 Balanced
 Regular analysis and review
 Utilize available resources and opportunities and new resources
 Proper coordination between short term and long term plans
 Free from psychological and social basis of planners
 Adequate review and controlling mechanism

6. Strategic and Functional Planning :-
 Apply to the entire organization, Establish the organization’s
overall goals, Seek to position the organization in terms of its
environment, Cover extended periods of time
 Functional planning is undertaken by various department in to
the organization to determine their respective , derived from the
long term goals and objectives.
Formal and Informal planning:-
 Informal planning takes place when a manager plans institutively
without any structure or rigid framework.
 Formal planning involves a structured process of investigation and
action.
CATEGORIES OF PLANNING

7. Ad hoc and Standing Planning :-
 Standing plans are often policies, procedures and programs
developed to ensure the internal operations of a given business are
operating smoothly. Examples of standing plans include policies
for employee interaction, procedures for reporting internal issues
in the company and regulations in terms of what is allowable and
what is prohibited in the business.
 Ad hoc plans are basically temporary plan which are made in an
organisation to enhance the process of achievement of objective.

8. Administration and operational planning :-
 Operational planning the details of how the overall goals are to
be achieved. Cover short time period.
 Administration planning deals with the making of policies to
achieve a particular goal or objective.
Long term and short term planning :-
 It is the process of establishing long-term goals, making our
strategies, policies and programmes to achieve these goals. It
ranges from 5 years to 20 years or even more.
 Short terms planning relates to a period of up to one year. Such
plans are made to achieve short term goals.

9. PROCESS OF PLANNING
 Determination of objectives
 Development of Planning Premises
 Determination of alternative courses of action
 Evaluation of alternatives

10.  Formulation of derivative plans
 Planning of timing and operational Schedule
 Securing people’s participation
 Reviewing and controlling plan
 Budgeting

11. PLANNING PREMISES
Planning premises are defined as the anticipated
environment in which plans are expected to operate.
They include assumptions or forecasts of the future and
known conditions that will effect the operation of plans.

13.  Internal Premises come from the business itself. It includes
skills of the workers, capital investment policies, philosophy
of management, sales forecasts, etc.
 External Premises come from the external environment.That
is, economic, social, political, cultural and technological
environment. External premises cannot be controlled by the
business.
INTERNAL AND EXTERNAL

14.  Controllable Premises are those which are fully controlled by
the management.They include factors like materials, machines
and money.
 Semi-controllable Premises are partly controllable.They
include marketing strategy.
 Uncontrollable Premises are those over which the
management has absolutely no control.They include weather
conditions, consumers' behaviour, government policy, natural
calamities, wars, etc.
CONTROLLABLE,SEMI- CONTROLLABLE,
UNCONTROLLABLE

15.  Tangible Premises can be measured in quantitative terms.They
include units of production and sale, money, time, hours of work,
etc.
 Intangible Premises cannot be measured in quantitative terms.
They include goodwill of the business, employee's morale,
employee's attitude and public relations.
TANGIBLE AND INTAGIBLE

16.  Constant Premises do not change.They remain the same, even
if there is a change in the course of action.They include men,
money and machines.
 Variable Premises are subject to change.They change according
to the course of action.They include union-management relations.
CONSTANT ANDVARIABLE

17. BARRIERS TO PLANNING
 LACK OF ACCURACY: In planning we are always thinking in
advance and planning is concerned with future only and future is
always uncertain. In planning many assumptions are made to
decide about future course of action. But these assumption are not
100% accurate and if these assumption do not hold true in present
situation or in future condition then whole planning will fail.

18.  PSYCHOLOGICAL BARRIERS: Generally the human beings have a
felling of uncertainty related to future. People have preference for
the present as compared to the future.The employees fell making
assumptions and then changing them according to present
conditions involve lots of time and cost. So, it is always advisable
to take decision according to present condition only.
 HUMAN ELEMENT:-The manger who are performing planning
function are human beings may make mistakes by making wrong
assumption or by selecting the wrong alternative to achieve the
objective of organization.The managers involved in planning work
may also mislead or misguide the employees by giving priority to
personal objective rather than organizational objective.

19. CONCLUSION
The above points show that planning is not a substitute
for success of a organization because it suffers from many
limitations. But is does not mean that managers should
not perform planning function, rather they should
perform planning keeping in mind the limitations of
planning and then try to overcome these limitations.