MEANING OF PLANNING!!

According to Phillip Kotler, Planning is deciding in the present what to do in the future. It is a process whereby companies reconcile their resources with their objectives and opportunities. Planning is deciding in advance: *What to do? *How to do? *When to do? *Who is to do it? And *What is the cost? A plan is a predetermined course of action that is firmly based on the nature and extent of socio economic problems, from which are devised priority goals. Planning involves choosing from among alternatives. It is based on objectives, facts and forecasts. Planning bridges the gap from where we are to where we want to go. A plan is todays projection for tomorrows activity.

FEATURES OF PLANNING!!
1. PRIMARY FUNCTION: Without planning there will be nothing to organize, direct, coordinate and control. Other management functions all depend on planning. 2. INTELLECTUAL AND REALISTIC PROCESS: Planning is a mental activity and involves thinking, foresight and vision. Planning is not guesswork. It is based on real facts and considered forecasts. 3. OBJECTIVE ORIENTED: Planning is based on objectives and the general policies of the business organization. It is essentially for achieving the objectives of the business enterprise. Along with being objective oriented, planning is also result oriented. 4. CONTINUOUS FUNCTION: Planning is a regular and continuous function of management. This is because business environment is flexible and business plans need continuous revision, modification and adjustment in the light of environment changes. 5. FLEXIBILITY: In planning, alternative plans are kept ready and one among them is selected for execution. Planning needs to be flexible as business environment itself is flexible. It makes planning adaptable to environment conditions.

IMPORTANCE OF PLANNING!!

1. UNIFORM DECISION MAKING: Planning provides a common framework within which uniform decision making becomes possible. 2. HANDLES CHANGE: Comprehensive planning can anticipate and adjust to ever changing environment. 3. SOLUTION TO PROBLEM: Planning acts as a master key to solve problems, difficulties and challenges faced by a business unit from time to time due to environmental changes, market forces and consumer expectations. 4. ENSURES STABILITY: Planning brings stability and prosperity to a business enterprise. 5. UNITY OF PURPOSE: Planning brings unity of purpose and diverts all efforts in one direction for achieving organizational objectives.

The importance of planning can be definitely seen with the success of Crompton Greaves. Today, Crompton Greaves had at least 20 locations in India alone. The company has received International Certifications for most of its other product groups in an ongoing effort.

TYPES OF PLANNING!!
1. SHORT TERM PLANNING: These are plans that are generally to one year. 2. MEDIUM TERM PLANNING: A medium term plan is from one to five years. 3. LONG TERM PLANNING: Long term plans extent beyond five years and often for ten and twenty years. Long term planning is a process for establishing long range goals and setting up the necessary machinery to ensure that the company gets where it wants to go. 4. FORMAL AND INFORMAL PLANNING: Planning is formal when it is put in writing. Formal plans are documentaries and provide records. Informal planning takes place without special sessions or a planning division. It produces no special statements, graphs, charts and other documents. Informal planning comes into being on the basis of suggestions and ideas advanced in oral discussions.

5. SPECIFIC AND ROUTINE PLANNING: A specific plan is one which is made with a particular object. It is a specialized plan. Routine plans on the other hand are plans which look into day-to-day activities. They are general in nature. 6. STRATEGIC PLANNING: Strategic planning is the process of determining how to pursue the organizations long term goals with the resources expected to be available. A well conceived strategic plan communicates much more than general intention about profit and growth. It specifies how the organization will achieve a competitive advantage, with profit and growth as necessary by-products. 7. RESOURCES PLANNING: Planning the various requirements of the organization with regard to men, money, materials and machines is known as resource planning. It is also important to decide about the way of collecting the required resources.