Define planning. Explain its importance and the main concepts used in planning.

1. 1 · Define. Planning is deciding in advance what to do, how, when and by whom (Koontz and Weihrich).
2. 2 · Nature.
   • Primary function
   • Goal- and future-oriented
   • Pervasive and continuous
   • Involves choice
3. 3 · Importance.
   • Gives direction
   • Reduces uncertainty
   • Minimizes waste
   • Sets standards for control
   • Improves coordination
4. 4 · Main concepts.
   • Vision and mission
   • Goals and objectives (SMART)
   • Strategies
   • Policies, procedures and rules
   • Programmes and budgets
5. 5 · Show the hierarchy. [Pyramid: vision and mission at the top, then goals, strategies, policies, procedures and rules at the base]
6. 6 · In Sri Lankan business. A supermarket chain's mission, outlet targets, farmer-sourcing policy and rupee budget.
7. 7 · Close. Planning is the base for the other functions; without it, control has no standard.

Scoring tip: Use a small table for the concepts: name, meaning, example. It is quick to write and easy to mark.