 Hello learners of the BBA program of KK Handic State of the University. In your first semester, you are having a paper, Principles of Management and Organizational Behavior. That particular paper has a number of units. I am Professor Anand Sharma. I shall take up unit 4, 5 and 6. Currently, I shall be taking the video class of unit 4. This class will be based on the self-learning material which are already with you. This particular unit, I have divided into 3 parts based on the 6 learning objectives. And each part, I try to cover, I shall try to cover within 10 minutes of time. So, within half an hour, I shall try to finish the entire unit of 4. Then, I shall take up unit 5. Then, I shall take up unit 6. Likewise, our other faculty members have also taken the other units. So, in this unit 4, this is all about planning. The module is on planning. So, I am starting the part 1 of the unit 4 that is on planning. So, we are starting with unit 4 that is on planning the part 1. You see, every unit has got some learning objectives. In this unit, there are 6 learning objectives. We first, in this first part, we shall take up the first 2 learning objectives. So, what are these 2 learning objectives? Discuss the meaning and features of planning that we shall discuss. Then, we shall take up the other objective that is explain the importance of planning in a business organization. What is the meaning of planning? In English, there is a saying that plans are nothing. Planning is everything. So, planning is everything. You see, it is a process. This process of determining the objectives and deciding the strategies to achieve the objectives. So, it is basically goal oriented. So, we have to be concerned about the goals. We have to be concerned about the objectives. So, it is the process of that goal determination. It is the process of achieving that goal with the help of different alternatives. So, planning is mainly concerned with what is to be done, how that is to be done, who will do that, where that will be done, when that will be done and most importantly, why also, why this is required. So, we have to be concerned about all these aspects. So, it is basically asking ourselves certain questions and this is all about in future. Because planning is a function which bridges the gap between the past and the future. Based on our past experiences, we shall contemplate our future courses of action regarding who will do what, what will be done, how that will be done and all these things. If you see that what are the features of planning, you see in one of your previous units, we have already discussed that the functions of management can be categorized into certain heads like planning, organizing, staffing, leading, controlling. Out of all these functions, planning is stated to be the primary function. It logically precedes all other managerial functions like organizing, staffing, etcetera. If we do not have the planning function, we cannot think about organizing. We cannot think about staffing. We cannot think about controlling. In English, there is a saying that planning and controlling are same as switch of management. Without planning, we cannot think about controlling. Based on controlling, we will take the feedback and then once again, we shall go back to our planning process. So, that is why planning is primary. So, primacy is the one very important feature of planning. The second feature of planning is it is always concerned about objectives, focus on objectives. Without the goal, we cannot think about planning. The third part is, the third feature is pervasiveness. Planning is all pervasive means planning applies to each and every management function, be it marketing, be it production, be it finance, be it process, be it materials everywhere. We have the planning. Suppose materials, we are having the materials requirement plan. In case of equipment, we have the manpower plan and the supervisor also has to plan. The top management also has to plan. It is pervasive irrespective of levels of management, irrespective of functions of management. It is all around the organization. Fourth is, planning helps us in coordinating the different activities of different functions. The fifth feature of planning is flexibility. See, planning is not that rigid. Without planning, we cannot move into the picture. So, plans will give us the direction, but while giving the direction, the plans cannot be that fixed. Plans cannot be that rigid. Plans will have to respond to the situational requirements. So, that is why plans are also flexible. So, these are basically the features of planning. It is the primary function. It is always concerned with the objectives of an organization. It is all pervasive across the organization irrespective of the level and function. And planning helps us in coordinating the complex activities of an organization. At the same time, planning gives us the scope for flexibility in terms of adoption of some contingency measures whenever required. So, there are different types of plans. One is corporate planning, which is for the entire organization. That is called the organizational planning also we can say. In case of non-corporate organizations, it will be organizational planning. In case of companies, etcetera, we call it as corporate planning. The second one is functional planning. Like as I said, it could be plans for the marketing function, the marketing plan, production plan, materials plan. Like that, it would be for the different functions of the organization. Likewise, it could be operational planning also. Suppose, the scheduling that materials, how the materials will be dispatched, how the materials will be received, how the production will be scheduled. All these are operational aspects. Suppose, the budget we shall make, now the budgetary control is an operational aspect. So, with all these types of plans, be it corporate plans, be it functional plans, be it operational plans, with all these types of plans, you know, the scope of the plans differ. Corporate plan, the scope is much, much wider. Whereas, in case of a daily plan or say hourly plan, the scope will be with respect to one particular hour only or it could be daily plan, it could be monthly plan, it could be quarterly plan. So, likewise, the time dimension will be there. The national strategic planning, operational planning, strategic planning will be for the entire organization, operational planning for a particular unit. So, national of the planning also will sense. Level of the management also might differ. As I said, top level management, they will be engaged in a different kinds of planning processes. Like as a bottom level management will be engaged in a different kind of planning processes. So, with each type of plans, like say corporate plan, functional plan, operational planning, the planning requirements, the planning processes varies. Now, we shall discuss the importance of planning. Planning is important for direction. Planning gives us the direction. Otherwise, in a sea, like if we doubt a rudder, a ship will be just moving around, it is not it. So, without planning, an organization will not know where it is going, how it is going, when to reach, how to reach. So, planning will give us the direction. So, that is why planning is very, very important. Without planning, we will not be able to move ahead. Primacy of planning, we have already explained to you that planning is the primary function. It logically precedes all other managerial functions. Planning helps in achievement of objectives. And then, planning helps in minimizing the impact of risk and uncertainties. The future is highly uncertain. Still, we will have to think about planning. In English, there is a saying that forecasting is very, very difficult. It is like trying to make a prediction of the future and trying to drive a car blindfolded following the instruction of a person who is not looking at the front, but rather looking at the backside mirror of a car. You are driving a car and while driving the car, you are following the instruction of a person. You are not looking at the front. You are following the instructions of a person who is sitting next to you and he is not looking at the front. He is looking at the backside mirror in which the front is getting reflected and you are following that direction. So, forecasting is says to be that difficult. But, things are uncertain. Still, in order to cope up with these uncertainties, we will have to take risks. So, planning helps us in taking those risks. Planning helps us in coordination. Planning provides the basis for control. Without planning, we will not be having any control mechanism like say budgetary control. We have to first prepare the budget. Then, only we can think about control mechanism. So, planning helps us a competitive advantage. If we can plan better compared to our competitors, in that case, we would be able to score high in our organization. So, that is why the allowance planning is very, very important. So, with this, we have come to the end of the part one of unit four that is on planning. We shall shortly come to discuss about the part two of planning. Then, we shall take up the remaining two other objectives.