Steps taken by management in the planning process are.

I. Setting up organizational objectives: 

(a) The first step in the planning process is the setting up of objectives as a whole as well as for each department thereof. 

(b) If the end result is clear, it becomes easier to work towards the goal. 

II. Developing planning premises: 

(a) Planning is concerned with the future which is uncertain. The manager is required to make certain assumptions about the future which is known as premises. 

(b) Planning premises refers to certain assumptions about estimates and projections of the future behavior of variables which are likely to affect the activities of the organization. They are in nature of informed guesses of managers with respect to specific future trends. 

III. Identifying alternative courses of action : 

(a) Once objectives are set, assumptions are made .Then the next step would be to act upon them. 

(b) There may be many ways to act and achieve objectives. All the alternatives courses of action should be identified. 

IV. Evaluating alternative courses : 

(a) Planning requires that each alternative course of action should be evaluated taking into facts about positive and negative aspects. 

(b) All alternative should be compared and evaluated with references to cost, speed, risk, profit and enterprise’s long-term objectives. 

V. Selecting an alternative: 

(a) This is real point of decision-making .The best plan has to be adopted and implemented. 

(b) The ideal plan, of course, would be the most feasible, profitable and with least negative consequences. 

VI. Implementing the plan:

(a) This step is concerned with putting the plan into action i.e., doing what is required. 

(b) For example, if there is a plan to increase production then more labour, more machinery will be required. This step would also involve organizing for labour and purchase of machinery. 

VII. Follow-up action: 

(a) After implementation of the plan, the next step is to review the existing plans periodically to ensure their relevance and effectiveness. 

(b) Once a plan is put into action as per schedule, its monitoring is equally important. In course of implementation, many adjustments may be required to achieve the given objectives.