Planning

Planning is the first important function of all organizations. It is planning that gives direction to all the activities to be undertaken by an organization. Planning includes setting the objectives of the organization, identifying the activities that need to be carried out to achieve these objectives and lastly, using these objectives to measure the performance of the organization. In the case of Murugappa group, it is found that they planned to enter into finance business by establishing Cholamandalam Finance, and over time they planned to enter into different segments of financial sectors and also entered into joint venture. After consolidating its operation during 2008–10 by exiting from some business keeping in mind the changing environment, it has now planned to grow further. It has set its target or goals and identified how it is going to achieve those goals and target. Every company or organization established with an objective needs proper planning to achieve its objectives. With increased uncertainty and fast growing change in the external environment, planning becomes more important. Companies plan for long period and short period. Generally, it is assumed that most companies have one objective of making profit. But in reality it has been observed that companies set multiple objectives. In order to achieve these objectives, companies plan budgets, policies, strategies, procedures, rules, etc. This chapter focuses on planning as a management function. The chapter discusses the nature and purpose of planning, different types of objectives and planning undertaken by companies. Further, it identifies the process of planning and various planning tools used by companies