Planning is concerned with establishing a predetermined course of action and is concerned with establishment of objectives to be achieved in future. Planning is a integrated process which involves choosing from the alternatives the best course of action. Planning involves certain components such as purpose, philosophy, promise, policies, plans and procedures. Plans are the basis of repetitiveness of any concerns. The future is full of uncertainties. Planning provider necessary provision to face the uncertainties & evaluates the alternative course of action for the continuous growth and prosperity of the organization. It provides with standards for comparison from actual performance from that of standards. Planning helps in anticipation of the needs of the organization. This leads to acquisition, allocation and utilization of resources in the best manner possible, thus avoiding unnecessary wastage's.
Planning is done for fairly longer periods, it describes the central concept mission, and purpose of the enterprise. Planning brings about co-operation and co-ordination among various departments of the organization by avoiding duplication of work. Planning, thus implies strict adherence to predetermined policies, procedures and programs that restricts the individual's freedom activity. The scope of planning of any organization is subject to rapid changes. Planning is thus a prerequisite for effective controlling.