Planning involves determining objectives and goals in advance through intellectual thinking about the future. It bridges objectives and their attainment by stating how goals will be achieved and is a systematic process necessary for any business that properly utilizes resources through setting objectives, developing alternatives, selecting the best option, and implementing and following up on plans, while being limited by inaccurate information, costs, inflexibility and resistance to change.

1. PLANNING

2.  Planning means deciding in advance what is to be done
 An intellectual process of thinking before doing
 A process in which the manager looks to the future
 Planning leads the enterprise towards clearly specified
objectives with clearest possible view of future.
.

3.  It states how the goals & objectives of the organization
are to be achieved
 Planning bridges the gap between objectives of the
enterprise and its attainment.
 Systematic planning is necessary for any business
activity
 Proper planning is essential for effective utilization of
resources including human resources

4.  Steps in planning
 Setting the objectives
 Develop planning premises
 Determine alternative course of planning
 Selecting the best alternative
 Formulating derivative plans
 Implementation of plans
 Follow up

5.  Limitations of planning
 Lack of accurate information
 Time and cost
 Inflexibility
 Limited scope
 Resistance to change