"Planning is deciding in advance what to do, how to do and who is to do it, planning bridges the gap between where we are and where we want to go. It makes it possible for things to happen."
Process of planning:
(i) Setting-up of the objectives: The manager set up very clearly the objectives of company keeping in mind the goals of the company and the physical and financial resources of the company.
After setting up the goals, the clearly defined goals are communicated to all the employees.
(ii) Developing premises:
(a) Premises refers to making assumption's regarding future.
(b) Premises are the base on which plan's are made.
(c) It is a kind of forecast made keeping in view existing plans and any past information about various policies.
(d) There should be total agreement on all assumptions.