25/09/2026
Planning
Planning is the essence of management. Planning is done with the close considerations of all the ingredients of the business organisations associated with its functioning for the purpose, it has been set up. Therefore, planning is required for each function including formulation of various policies to regulate all the functions of the organisations associated with the main business activity.
βBusiness objectives and evolution of managementβ, a business organisation deals in any of the activity, such as manufacturing, creating a service and marketing, trading or financial services as a business activity. With the main activity of manufacturing or providing a service, there are other associated activities like sales and marketing, materials procurement, human resource planning and finance etc., which too require proper planning and co-ordination.
This is explained assuming that the business organisation is engaged in the manufacturing activity, wherein production is the main function in the total manufacturing process.
Planning for production requires linkages with the following associated functions:
i. Sales plan for the year
ii. Capacity available
iii. Technology presently in operation
iv. Present yields and techno-economic norms
v. Raw materials including other materials
vi. Maintenance
vii. Power
viii. Manpower
ix. Projects for additions, modifications, replacements and modernization
x. Funds for working capital and projects
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xi. Logistics for dispatches of finished products.
Thus, planning for production and all the associated functions is done keeping into consideration the corporate objective, vision, mission, corporate plan and policies of the organisation.
Similar to the planning for production, other activities too are interfaced. For example, planning for materials requires linkages with the production plan, stocks already available, pending orders position, lead time from order to receipts, procurement policy