Definition of Planning: The planning process is the first basic managerial function According to Koontz and O’donnell,” Planning is deciding in advance What to do, how to do it, when to do it, and who is to do it.”
Importance of Planning: Planning is the first and most important function of the management. It is needed at every level of the management. In the absence of planning all the business activities of the organization will become meaningless. The importance of planning has increased all the more in view of the increasing size of organizations in the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future. Planning is important because:

1. Planning reduce risk of Uncertainty

2. Focuses on objective

3. Ensures efficiency

4. Planning provides Direction

5. Planning establishes Standards for controlling

Elements/Types of Planning:

1. Mission/Purpose: It describes the types of business. It defines the overall ‘working’ of the business. It is a long term plan.

2. Objective or goal: It means expected end result. It is the specification of mission. It may be qualitative or may be quantitative.

3. Strategy: It means determination of long term actions and selecting the best/appropriate options to achieve the mission/objectives. There are some considerable based on company’s strength and weakness.

4. Policy: Guidelines for managerial decisions. It’s the boundaries for doing something. It is the boundary for doing something.

5. Procedures: Series of activities to accomplish an objective or a task. Flowcharts used here to describe the procedures.

6. Rules: Specific actions to be done. Does not allow for managerial discretion.

7. Program: Combination of objectives, rules, policies,, procedures, etc.

8. Budget: This type of plan is