The document defines planning as deciding in advance what is to be done, when, where, how, and by whom to achieve organizational objectives. It provides definitions of planning from various authors, emphasizing it as an intellectual process to anticipate events and map out activities. Planning establishes objectives and finds ways to realize them. Key characteristics are that plans should be based on clear objectives, simple, flexible, balanced, provide performance standards, and be economical and practical. The document outlines different types of plans like purposes, objectives, strategies, policies, procedures, rules, programs and budgets. It also discusses basic principles and steps in the planning process.

1. UNIT 2
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

2. MEANING
• Planning is essentially a
process of deciding in
advance what is to be
done, when and where it
is to be done, and how it is
to be done, and by whom.
To plan is to look ahead
and chalk out the future
course of operations of an
enterprise.
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

3. DEFINITIONS
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

4. DEFINITIONS
• According to Koontz and O’Donnell, planning is “an intellectual
process, the conscious determination of courses of action, the
basing of decisions on purpose, facts and considered estimates.”
• George Terry writes “ By means of planning management
members try to look ahead, anticipate eventualities, prepare for
contingencies, map out activities and provide an orderly sequence
for achieving the objective.”
• Henry Fayol views: “The plan of action is, at one and the same
time, the result envisaged, the line of action to be followed, the
stages to go through, and methods to use
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

5. Nature and Characteristics of Planning:
• Planning is concerned with
the establishment of
objectives of an enterprise
and finding out the way of
realization of those
objectives. However, without
setting the objectives there
is nothing to organize, direct
or control. Therefore, every
organization is required to
specify what it wants to
achieve.
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

6. Planning is basically related with this aspect.
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

7. Objectives / Importance / Advantages of Planning
1.Focuses attention on objectives &
results
2.Reduces uncertainty and risk
3.Provides sense of direction
4.Encourages innovation & creativity
5.Helps in coordination
6.Guides decision making
7.Provides a basis for decentralization
8.Provides efficiency in operation
9.Facilitates control
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

8. Features of a good plan
1.Based on clearly defined objectives
2.Simple, easily understandable
3.Flexible or adaptable to
changing conditions
4.must be balanced in all respects
5.must provide standards for the evaluation
of performance and actions
6.It should be economical
7.It should be practicable
8.Prepared with the consultation of
concerned persons
9.Should be clear, specific and logical
10.Should be capable of being controlled
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

9. Types of Plan
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

10. Types of Plan
1.Purposes or Missions
identifies the basic function or task of an enterprises or agency or any part of it. The purpose of business generally is the
production and distribution of goods and services.
2.Objectives or goals
are the ends towards which activity is aimed, they are the results to be achieved. They represent not only the end point of
planning but the end toward which Organising, staffing, leading and controlling are aimed.
3.Strategies
Strategies are grand plan. The most common usage of the term are – general programs of action and deployment of
resources to attain comprehensive objectives. The determination of the basic long term objectives of an enterprises and
the adoption of courses of action and allocation of resources necessary to achieve these goals.
4.Policies are general statements or undertakings which guide or channel thinking in decision making. Not all policies are
“Statements”, they are often merely implied from the actions of managers.
5.Procedures
are plans that require method of handling future activities. They are guides to action, rather than to thinking, and they detail
the exact manner in which certain activities must be accomplished. They are chronological sequences of required actions.
6.Rules spell out specific actions or non actions, allowing no discretion.
7.Programs are a complex of goals, policies, procedures, rules, tasks assignments, steps to be taken, resources to be
employed and other elements necessary to carry out a given course of action; they are ordinarily supported by budgets.
8.Budgets is a statement of expected results expressed in numerical terms. Referred as “numberized” program. The financial
operating budget is often called a “profit plan”
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

11. Steps in Planning:
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

12. Steps in Planning:
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

13. Basic Principles of Planning:
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

14. Basic Principles of Planning:
MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in

15. MANU H NATESH MBA, M.Com. BMSCCM
E-mail: manu@bmsec.ac.in