Planning is the process of setting objective for a given time period, formulating various course of action to achieve them and then selecting the best possible alternative from among the various courses of action available.

First two steps in the process of planning are:

(i) Setting objective

(ii) Developing premises

Detailed Answer:

(i) Setting Objectives: The first step in planning is to identify certain objectives. The objectives set must clearly indicate what is to be achieved, where action should take place, who should perform it and when it is to be accomplished. The objectives should be established for the entire organisation and for each and every department. Planning has no utility if it is not related to certain objectives.

(ii) Developing Premises: The next step is the establishment of planning premises. Planning premises are the assumptions and predictions about the future. The assumptions are the basis of planning. Forecasting is important in premising. It helps in making realistic assumptions about sales, costs, prices, products etc., in future. This requires a collection of data on present trends and future possibilities.