Short paragraph on forecasting:
As planning involves future, forecasting has become an essential element in planning. Based on the previous experience the manager has to plan the future. Forecasting is necessary to prepare the organisation for any future uncertainty and to meet the future challenges. Forecasting can check the wastages and keep the tempo of the organisation in terms of its turnover, profit etc. Drucker holds that “management has no choice but to anticipate the future, to mould it and balance short range and long range goals. Any management decision must therefore contain provision for change, adaptation and salvage”.