| Basis | Planning | Co-ordination |
| Meaning | Planning is a psychological process of thinking and deciding in advance what is to be done and how it is to be done. | Coordination is the process of achieving goals by establishing harmony and integrity among people in the organisation. |
| Objective | To set goals and choose the means to achieve them. | To ensure smooth functioning of the organisation. |
| Level of management | Plans are formulated by the toplevel management. | Coordination is required at all levels of management. |
| Order | It is the first function of management. | It is the fifth function of management; it comes after planning, organising, staffing and directing. |
| Factors | Internal and external factors are considered while setting goals. | It focuses on the internal environment of the organisation. |
