The process of deciding the business activities in advance using the thinking capabilities and decision making power is called as planning. The road through which the objectives of the organization have to achieve is channelized by the process of planning. Think before performing is the principle which is applied in planning processes. All other functions of management like organizing, controlling and directing are also greatly influenced by the planning. The mental aptitude and state of the manager is the main element which is concerned with planning. Different scholars consider planning as the prime management function.
Since it is the fundamental managerial function the importance of planning in the modern business world id doubled. The competition and demographic factors are widely varied so that more crucial planning has to be dome for the success. The customer satisfaction is the foremost concern of a business enterprise today. Thus, the intellectual qualities and foresight of the management is highly required in the process of planning. In business, the group activities are necessary to increase the speed of operations. The sound judgment and mental work by the mangers can only make the group activities efficient.
Decisions by the manger are not spontaneous in nature. But, proper study and research can only help in making appropriate decisions. The mental exercise behind the right decision is termed as planning. The pros and cons of different choices are critically analyzed using the intellect of the managers. It is always necessary that the planning process should be flexible. The market conditions are prone to variations which can either adversely or positively affect the business enterprises. The planning process should be adaptive in nature to the changing business environment. In case of rigid planning process, the business goals are achieved only after lot of struggles and adversities. The needs and requirements of the situation should be analyzed before taking a decision.