Planning : Planning is deciding in advance , What to Do , How to Do and Who is to Do it . Planning bridges the gap as , where we are and where we want to go . It makes it possible for things to happen . Steps involved in the planning process are : 

(i) Setting Objectives : 

• The first step in the planning process involves laying down clear , specific and measurable objectives for the organization as a whole and also with respect to each department or unit , within the organization .

(ii) Developing Premises : 

• Planning cannot be done without anticipating future events . 
• As future is uncertain , the Managers are required to make certain assumptions about the future in terms of customer preferences , competition , interest rates , state of economy , government policy and so on . These assumptions are known as Planning Premises . 
• The Premises so developed set the limits within which the planning should be carried out . Thus , accurate forecasting is the essence of successful planning . 

(iii) Identifying Alternative Course of Actions : 

• The next logical step that follows after stating the objectives and developing premises is identifying all the alternative courses of action , which are available for consideration 

(iv) Evaluating Alternative Courses : 

• After listing the various possible alternatives , it is important to analyze the relative Pros and Cons of each alternative in light of their viability and significances . 
• This is a very important step in Planning , as accurate analysis of various alternatives is imperative for correct decision making .