Planning is a process of determination of organization’s objectives and selecting the courses of actions. i.e. Plans for attaining them.

Planning is the primary or basic management function.


Planning Process

















Types/Dimensions of Planning


  1. Corporate Planning :            Business product line


  1. Long term Planning :            > 5years


  1. Short term Planning :          1 year


  1. Medium term Planning :     2-5 years


  1. Strategic planning :               Long term, corporate planning for dealing with the organization  Competitive environment.


  1. Operational or Tactical Planning :  Plans that specified detail operations needed to achieve The overall organizational goals. (Short range planning)

(Administrative Plans)


  1. Functional Planning :                         Production, Marketing, Personnel,  Finance.



Components/Elements of Planning


Objectives :    The basic tools that underline all planning and strategic activities.


Strategy:         The Long term action plan to attain objectives.


Policies:           These are general statements or understanding that guide or channel thinking in decision making.


Procedure:      A Chronological Sequence of steps or actions to be taken to accomplish a  Specific task or job.


Method:          It is a prescribed way of completing a step in a procedure.


Rules:           Specific recored statements that direct what must or must not be done in a Given situation.


Standards:      It is a measure against whuch the level of performance is measured or  Evaluated.


Programmes: An action plan consisting sequence and timing of steps necessary to achieve Objectives.


Schedules:        A plan which indicates the time of commencement of task, passing through Different stages or process and finalising the task.


Budgets:        Numerical Plan containing expected result in quantative way.


Project:          It is smaller action plan and a distinct part of a programme.

Tactics:          Short term action plan for implementing strategy.




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