Planning is considered to be a primary function of management for following reasons : 

• Planning precedes all functions of management i.e. Organizing , Staffing , Directing and Controlling . 
• Effective Planning provides the framework within which various managerial functions are performed . 
• This feature is also known as the Primary of Planning , as the very nature of planning is to offer the basis of all other functions . 

Example : Think of a situation where you have been asked to organize a meeting for the staff members . Is it possible for you to make the necessary arrangements , unless the day of meeting is decided ? This simple example highlights , how Planning lays down the foundation for all other functions .

Concept of Policy : A Policy is verbal , written or implied , an overall guide for setting up boundaries that supply general limits and directions in which managerial actions takes place . 

• Policies serve as a guideline for implementing a strategy . 
• They are expressed in the form of general statements that guides managerial decision making and action . 
• They lay down the broad parameters within which the Managers are expected to function . 
• Well defined policies simplify the work of the business Managers and enables them to deal with the problems or solutions in an appropriate manner . 
• The application of a policy requires a Manager to exercise His / Her discretion to interpret in a particular manner . 

Concept of Rule : A rule is a type of plan that requires a specific and definite action with respect to a situation . 

• Rules are the simplest form of plans which specifies the action that must or must not be Taken i.e. The Do’s and Don’ts that Guide the behaviour of People . 
• They are expressed in specific terms . 
• There is no scope of flexibility or discretion in the application of the rules . 
• Since , rules are essential for discipline and smooth operations of the business , a penalty is generally imposed on violation of a rule . 
• Rules may be changed only when there is a change in the policy . 

Example : “NO SMOKING” is a Rule , Followed in a Factory .