This decision signifies that a definite action must be taken in respect of a specific situation. Content Guidelines 2. The task of planning will be well-accomplished if some fundamental principles are followed in the process. The break-down of the master plan into departmental and sectional plans provides a realistic picture of the actions to be taken in future. After reading this article you will learn about:- 1. Elements 5. The manner in which each work has to be done is indicated by the procedures laid down. For example, production planning depends upon sales planning—and vice versa. This may also be stated as an important strategy of business. By this we mean to say that the application of decision-making is extended beyond the horizon of planning and, in any business, almost every position is a decisional centre. BBAN202 Macro- Economic Analysis and Policy, BBAN204 Computer Applications in Manageemnt, BBAN603 Fundations of International Business, KMBFM01 Investment Analysis & Portfolio Management, KMBHR02 Performance and Reward Management, KMBHR03 Employee Relations and Labor Laws, KMBMK02 Consumer Behavior & Marketing Communications, KMBOP01 Supply Chain & Logistics Management, NEGOTIATION & CONFLICT MANAGEMENT AKTU MBA NOTES, RMB401 Corporate Governance Values and Ethics AKTU, RMBIB04 Trading Blocks & Foreign Trade Frame Work, RMBMK05 Integrated Marketing Communication MBA NOTES, RMBOP04 World Class Manufacturing and Maintenance Management, SECURITY ANALYSIS AND INVESTMENT MANAGEMENT, GGSIPU (BBA101) Management Process & Organizational Behavior – HOME | MANAGEMENT NOTES, GGSIPU (BCOM101) Management Process & Organizational Behavior – HOME | MANAGEMENT NOTES, CCSU(B.COM) C-203 Principles of Business Management – theintactone.com. They all merge into a single programme and act as a guide for the whole concern. For example, a company plans to achieve a sales target of 112 crores a year. In the absence of planning no other function of management can be performed. The next step in the planning process lies in the setting up of objectives to be achieved by the enterprise in the clearest possible terms keeping in view its strength and limitation. They are applied as and when required. The strong and weak points of every alternative should be analysed carefully. Again, there are many managerial functions like motivating the employees, disapproving their work or discharging them form service which call for decision-making, but these functions cannot be included within planning from the point of view of analytical study of different management processes. Planning pervades all managerial activities. It should be as flexible as possible to accommodate all possible changes in the enterprise with a view to coping with the changing conditions in the market. Budget indicates the size of the programme and involves income and outgo, input and output. A plan is a course of action that can take the organisation to its objectives at the minimum cost. Thus, a company may have a programme for the establishment of schools, colleges and hospitals near about its premises along with its expanding business activities. The aspects of this changing environment include changes in technology, government policies, the nature of competition, social norms and attitudes etc. A plan involves varied factors of different importance. 2. As a managerial function, planning is important for the following reasons: The first and most important reason for planning lies in the fact that it provides a basis on which decisions are made. Financial Planning: it’s Meaning, Importance and Elements – Discussed! For example, one alternative may be the most profitable but requires heavy investment; another may be less profitable but also involves less risk. Changes must necessarily be effected in the plan for taking into account new developments that may take place in the course of the operation of the plan. There is no need for planning if there is only one way for doing something. Different procedures are adopted in different areas of business activities. (iii) The optimum period of time for achieving them. For successful implementation of a plan, it must be communicated to all levels of the organisation. Business forecasting refers to analysing the statistical data and other economic, political and market information for the purpose of reducing the risks involved in making business decisions and long range plans.