DEFINITION AND

NATURE OF
PLANNING
WHAT IS PLANNING
• According to Terry, “ Planning is the selecting
and relating of facts and the making and using of
assumptions regarding the future in the
visualization and formulation of proposed
activities believed necessary to achieved desired
results.”
•H. Fayol says, “ Planning is deciding
the best alternatives among others to
perform different managerial operations
in order to achieve the pre-determined
goals.”
 NATURE OF PLANNING
• PRIMARY FUNCTION
• GOAL ORIENTED
• CONTINUOUS PROCESS
• FLEXIBLE
• MANAGERIAL FUNCTIONS
 PRIMARY FUNCTION
•Functions of management largely depends
upon planning. It provide the basic function
from which all future management functions
arise. Therefore planning is the primary
function of management
 GOAL ORIENTED
• Plans arise from objectives. Objectives provide guidelines
for planning.
• Planning involves choosing the proper course of action from
among alternatives & calls for decision making which is an
intellectual process. Change in environment bring
opportunities and involved risk as well. It is the task of
planner to take advantage of opportunities and minimize the
risk
 CONTINUOUS PROCESS
• It is an on-going process of adapting the organization
with the changes in business.
• Management is a dynamic process and planning as its
function cannot be an exception to it. More over as plans
beget a number of sub-plans and since plans have to be
revised in the light of changing environment, planning
becomes a continuous function of Management.
 FLEXIBLE
• As already pointed out, while planning, any one of
the available alternatives is selected. Planning
selects the best alternatives based on certain
assumptions. There is a possibility of dead log in
the functions of the management. Planning has one
more alternative to suit future situations.
 MANAGERIAL FUNCTIONS
• Planning is a pervasive function of management. It
is found at all levels and all departments of an
organization. Top management looks after
strategic planning. It involves choosing the future
course of action from among alternatives.