(a) Planning: The task of collecting information for the activities to be undertaken in business, consider them in advance and plan out how to do these activities is called planning. Planning is an intellectual process to achieve business goals.

(b) Characteristics of planning:

1. Universal process: Planning is a universal process. Planning is required in each and every field may it be business, politics, education, religion or a social event.

2. Primary function: Planning is the primary function of management. Management starts with planning. Other functions of management like organization, staffing directing, controlling are implemented on the basis of planning.

3. Conscious and mental process: Planning is done using mental abilities while remaining conscious about the outcomes. This is so because during planning decisions are taken consciously and on the basis of calculative assumptions.

4. Flexibility:

• Although planning is done so that tasks take place as per planned method, still planning holds a good amount of flexibility.
• During the execution of planned steps the business may experience certain external factors. These factors may disturb the planned process. Hence, the unit may have to make necessary changes as per time, circumstances and situations.
• Thus, planning is dynamic and flexibility is the precondition for planning.

5. Precise: Planning is a process done for the future.
Since, future is uncertain, the planning is to be done precisely and minutely by rigorous brain storming, collecting and analyzing statistical data, collecting relevant information, etc.

6. Forecasting is essential: Forecasting and planning are considered as the first function of management. Forecasting is done by considering the uncertainties of future that will take place while making a plan for the business unit.

7. List of alternatives: While planning for any objective there exist a variety of alternatives. For example, there can be several alternatives (i.e. ways) to increase the sales in future. These alternatives could be increasing advertisement, reducing prices, training to sales staff, announcing attractive offers, etc. The planners need to select the best suitable alternative from these.

8. Concerned with future:

• Planning presumes that there are uncertainties involved in future.
• While remaining in present, planning evaluates future and hence we can say that planning is concerned with the happenings of future and is focused on – taking best steps for the same.

9. Continuous process:

• Planning is a continuous process.
• It is such a process which begins with the establishment of the organization and continues till the end i.e. till the organization lasts. However, the plans and planning process keep on changing continuously as per time and situation.

10. Objective oriented activity:

• Planning is done to achieve a specific, pre-determined business objective.
• Once an objective is accomplished the management decides the next objective for business.
• It is desirable that realistic objectives are set so that they can be planned and achieved well. Thus planning is an objective oriented activity.

11. Planning considers various available options and then selects the best suited one. Since the planners need to make such decisions on a regular and continuous basis it is said that planning is a decision oriented process.