9.3 CONCEPT OF PLANNING : Planning is not only the first function of management, it is an integral part of it.
To plan is to look ahead and chart out the future course of operations. It is the determinant of a
course of action to achieve a desired result. It is one of the corner stones upon which success-
ful enterprise depends. Planning is meant for the following
1. For the analysis of a problem
2. Thinking out the forward solutions to that problem
3. outlining the steps that must be taken to reach the objectives.
A planner has to think about the following aspects.
a. What is to be done ?
b. How it is to be done ?
c. When it is to be done?
d. By Whom is it to be done?
e. Where it is to be done ?
Following chart shows stages in Planning
9.4 PRINCIPLES OF PLANNING: (A) Principle of contribution to objectives : Both major and derivative plans are prepared to
contribute to the objectives of the enterprise. Planning is used as a means to reach the goals.
(B) Principle of Primacy of Planning : This principle states that planning is first or primary
function of every manager. Other managerial functions are organised to reach the objectives
set in planning.
(C) Principle of Planning Premises : This principle lays emphasis on properly analysing the
situation which is going to Practise in future. In order to make planning effective, some pre-
sumptions have to be made on the basis of which planning has to be undertaken.
(D) Principle of Alternatives : Planning process involves developing of many alternatives and
then selecting one which will help in achieving desired business goals .
Planning.
What is to be done.
When is it to be done.
Identification.
How is it to be done.
Where is it to be done.
Figure 9.1. Stages in Planning Right time.
Method.
Place.
P- Planning
O- Organisng
S- Staffing
D- Directing
C- Controlling
