1. PLANNING Beginning of the process of management It is an intellectual process which requires a manager to think before acting. Manager of organizations decide what is to be done, how is to be done and who is to do it. It is objective and result oriented. Decision making is an integral part of planning. Understand principle of navigational change. Planning touches all aspects of business activity.

2. CONTD… It is a mental activity involves thinking – foresight and vision, based on facts and considered forecasts. It is a regular function of management which meets continuous revision, modification and adjustment. It raises the overall efficiency of a business unit closely linked with past.

3. ESSENTIALS OF A GOOD PLAN 1)Simplicity 2)Clear Objective 3)Suitability 4)Flexibility 5)Continuity 6)Unity of purpose and direction 7)Comprehensive and Complete 8)Full utilization of resources and opportunities 9)Beneficial to all concerned

4. STEPS OR TECHNIQUES OF PLANNING Classifying the problem – Opportunities by managers justifies the need for action. Determining the objectives as a whole and broken down into departmental sectional and individual objectives. Collecting information and data. (Problem of the unit) Analysing the information. Planning premises (Assumption and predictions about the future)

5. Contd.. Determining alternative plans (standby arrangement for meeting any emergency situation) Selecting operating plan and preparing derivative plans. Arranging timing and sequences of operations. Securing participation of employees. Follow up of the proposed plan (periodical review of the execution program)

6. LIMITATIONS OF MANAGERIAL PLANNING 1.Time consuming and costly activity 2.Changes in the situation makes planning ineffective. 3.Difficulty in securing accurate information and data. 4.Encroachment on individual freedom and initiative 5.Generate frustration 6.Opposition from employees 7.Delays actions 8.Unsuitable to small firms 9.No guarantee of expected results. 10.Dangers of overdoing

7. COMPONENTS OF PLANNING – Plans are broadly classified into 1)For repetitive activities (Standing plans) 2)For Non-repetitive (Single use plans)

8. COMPONENTS FOR STANDING PLANS : 1)Mission – Fundamental reason for the existence of an organisation. Points out belief and philosophy of the management. 2)Objectives/ Goals – General / Specific, Short /long, etc. 3)Policies – Verbal, written or implied statements which are followed as guide to action by managers and employees of an organisation. Policies are prepared in regard to purchase, sales and other business activities. 4) Procedures – Procedures guide actions and bring consistency in them. Procedures suggest the exact manner in which a particular activity is to be conducted.

9. 5) Rules – Rules indicate specific action be or be not taken with regard to a situation. Rules constitute the most specific type of standing plans. Strategies - Strategy is a plan based on the anticipated moves of the opponent. It means a comprehensive plan which will enable a company to meet any type of situation effectively. Strategy is also useful in order to deal with any adverse situation or sudden change in the situation. Strategies are necessary to achieve its long term objectives. It enables a business unit to face adverse situation and market competition. It develops team spirit in the organization. It ensures optimum utilization of material and available human resources.