Features/Characteristics of Planning:

1. Planning is goal-oriented. a. Planning is made to achieve desired objective of business. b. The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected. c. Planning identifies the action that would lead to desired goals quickly & economically. d. It provides sense of direction to various activities. E.g. Maruti Udhyog is trying to capture once again Indian Car Market by launching diesel models. Planning is looking ahead. e. Planning is done for future. f. It requires peeping in future, analyzing it and predicting it. g. Thus planning is based on forecasting. h. A plan is a synthesis of forecast. i. It is a mental predisposition for things to happen in future. Planning is an intellectual process. j. Planning is a mental exercise involving creative thinking, sound judgement and imagination. k. It is not a mere guesswork but a rotational thinking. l. A manager can prepare sound plans only if he has sound judgement, foresight and imagination. m. Planning is always based on goals, facts and considered estimates. Planning involves choice & decision making. n. Planning essentially involves choice among various alternatives. o. Therefore, if there is only one possible course of action, there is no need planning because there is no choice. p. Thus, decision making is an integral part of planning. q. A manager is surrounded by no. of alternatives. He has to pick the best depending upon requirements & resources of the enterprises. Planning is the primary function of management / Primacy of Planning. r. Planning lays foundation for other functions of management. s. It serves as a guide for organizing, staffing, directing and controlling. t. All the functions of management are performed within the framework of plans laid out. u. Therefore planning is the basic or fundamental function of management. Planning is a Continuous Process. v. Planning is a never ending function due to the dynamic business environment. w. Plans are also prepared for specific period f time and at the end of that period, plans are subjected to revaluation and review in the light of new requirements and changing conditions. x. Planning never comes into end till the enterprise exists issues, problems may keep cropping up and they have to be tackled by planning effectively. Planning is all Pervasive. y. It is required at all levels of management and in all departments of enterprise. z. Of course, the scope of planning may differ from one level to another. aa. The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same. Planning is designed for efficiency. bb. Planning leads to accomplishment of objectives at the minimum possible cost.

cc. It avoids wastage of resources and ensures adequate and optimum utilization of resources. dd. A plan is worthless or useless if it does not value the cost incurred on it. ee. Therefore planning must lead to saving of time, effort and money. ff. Planning leads to proper utilization of men, money, materials, methods and machines. Planning is Flexible. gg. Planning is done for the future. hh. Since future is unpredictable, planning must provide enough room to cope with the changes in customers demand, competition, govt. policies etc. ii. Under changed circumstances, the original plan of action must be revised and updated to male it more practical. 2. Basic to all managerial functions. Planing is a function that is foundation of management process. Planing logically precedes all other functions of management, such as organization, staffing, etc. Because without plan there is nothing to control. Every managerial action has to be properly planned.

Types of Plan
A plan is a specific action proposed to help the organization achieve its objectives.The importance of developing plans is evident from the fact that there may be more than one means of reaching a particular goal. So with the help of logical plans, objectives of an organization could be achieved easily. There are different types of plan. Some of the important types are given and discussed below.

Strategic Plans

Strategic plans are detailed action steps mapped out to reach strategic goals. These plans apply to the entire organization and position the organization in term of its environment. Strategic plans address the broad issues such as changing conditions, allocation of resources, international competition, etc. Generally such goals are developed by top management after consulting board of director and middle management. The time horizon of strategic goals exceeds 3 to 5 years.

Tactical Plans

Tactical plans are developed to support the implementation of the strategic plans. These are important to the success of strategic plans and cover intermediate time horizon usually encompassing 1 to 3 years. Such plans are developed by middle managers after consulting lowerlevel managers. Tactical plans are more specific and concrete than strategic plans.

Operational Plans

Plans aimed at supporting the implementation of tactical plans and achievement of operational goals. Such plans clearly specify the things needed to be done in the short run, in order to achieve the operational goals. These plans are developed by lower-level managers after consulting the middle managers. The time period of operational plans is less than one year, such as few months, weeks or even days. The success of strategic and tactical plans depends upon the achievement of operational goals.

Specific Plans

Those plans which are clearly defined and leave no room for interpretation are called specific plans. Such plans require specific stated objectives and do not contain ambiguity. Specific plans

require clarity and a sense of predictability that often do not exist therefore they are not preferable.

Directional Plans

Directional plans refer to the flexible plans that set out general guidelines. Such plans are preferable in dynamic environment where management must be flexible in order to respond to unexpected changes. Managers use the directional plans to remain focused and do not lock themselves into specific goals or course of action.

Single-use Plan

Single-use plan is one-time plan specifically designed to achieve particular goal that, once achieved, will most likely not recur in the future. Such plan is developed to meet the needs of a unique situation. There are two important types of sing-use plans: programs and projects. a. Program A single use plan aimed at carrying out a special project in an organization that if accomplished will contribute to the long term success of organization. Programs are composed of several different projects and may take more than 1 year to complete. b. Project A project is a plan that organizes a set of limited-scope activities that do not need to be divided into several major parts in order to reach a significant nonrecurring goal.

Standing Plans

Standing plans are ongoing plans that aimed at providing guidance for performing recurring activities. There are three important types of standing plans which are: policies, procedures, and rules. a. Policy Policy is guideline that establishes parameters for making decisions. It specifies the broad limits with in which organizational members are expected to operate. So it means that policy does not mention the specific action but provides a parameter for action. b. Procedures Procedure is a series of related actions that must be taken to accomplish a particular task. Policy does not allow much flexibility or deviation because they provide detailed step-by-step instructions as to what should be done. In this way procedures outline more specific actions than policies do. c. Rules An explicit statement that tells managers what they can or cannot do. Rules do not allow any room for interpretation because it clearly specifies the actions needed to be done in a particular situation.