Planning is the essence of modern management. Generally speaking planning is deciding in advance want is to be done.

Planning helps in determining the course of action to be followed for achieving various organizational activities. Planning involves the choosing of a course of action from all available alternatives for accomplishing the desired results with greatest economy and certainty.

The proposed course of action is sorted out in greater details with the help of complex of plans like policies, programmes, procedure and budgets etc.

According to Hart planning is the deciding of a course requires for reaching organizational goals.


Learn about:- 1. Meaning and Definitions of Planning 2. Scope of Planning 3. Six P’s  4. Elements 5. Approaches 6. Classification of Planning Premises 7. Objectives 8. Methods 9. Advantages 10. Disadvantages.

Planning: Definitions, Scope, Elements, Approaches, Classification, Objectives, Methods, Advantages and Disadvantages 


  1. Meaning and Definitions of Planning
  2. Scope of Planning
  3. Six P’s of Planning
  4. Elements of Planning
  5. Approaches of Planning
  6. Classification of Planning Premises
  7. Objectives of Planning
  8. Methods of Planning
  9. Advantages of Planning
  10. Disadvantages of Planning

Planning – Meaning and Definitions: Given by George R. Terry, Koontz & O’Donell, Lavis A. Allen and Hart

Planning is the essence of modern management. Generally speaking planning is deciding in advance want is to be done. Planning helps in determining the course of action to be followed for achieving various organizational activities.

Planning involves the choosing of a course of action from all available alternatives for accomplishing the desired results with greatest economy and certainty. The proposed course of action is sorted out in greater details with the help of complex of plans like policies, programmes, procedure and budgets etc.


There may be cases where little bit of planning helps in achieving objectives, this may happen in favourable situations. In a competitive business world, a manager cannot wait for favourable circumstances; he has to decide in the face of uncertainties. There is no place for guess work and the need is proper planning.

The affairs of any business organization would be a mere chance without well thought out plan. Resources employed would be wasted if they are applied to company without proper planning. Therefore planning is a primary function of management to ensure proper utilization of human and material resources in business processes to realize profits.

According to George R. Terry, “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results.”

According to Koontz & O’Donell, “Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are and where we want to go. It makes possible things to occur which would not otherwise occur”.


The term planning has been defined by various authorities differently.

Some of the definitions are given below:

“Management planning involves the development of forecasts, objectives, policies, programmers, procedures, schedules, and budgets”. — Lavis A. Allen

According to Allen planning is essentially deciding about future.


The determination in advance of a line of action by which certain results are to be achieved. — Hart.

According to Hart planning is the deciding of a course requires for reaching organizational goals.

Planning – Scope

Corporate planning is an intellectual process, which requires analysis of future circumstances both external (outside business environment) and internal (within the organization) in the process of development of objectives, policies, strategies (how to combine and employ resources) and programs within the framework of that uncertain future. Under total or comprehensive business planning we have two divisions.

They are:


1. Corporate/Strategic or long range plans.

2. Administrative (medium-term) and Operational (short-term) plans.

1. Corporate Plans:

The corporate plans are long-term plans having a time horizon of 5 to 10 years or sometimes more. It all depends on the purpose of planning and the size and activity of the enterprise. These plans covers the activities of whole/entire enterprise. These plans are sometimes divided into strategic and administrative plans. Strategic plan look after long-term well-being and prosperity of the organization (for example, growth plans, financial plans). Administrative long-term plans are concerned with the allocation and utilization of organizational resources. The time horizon of these plans may be up to 5 years.

(i) Long Term Planning:


Long-term plans deal with the future of the present decision. It sets goals and develops strategies to achieve them. It translates strategies into detailed operational programs assures the execution of plans. Long range plan is defined by Warren as “A process directed onwards making today’s decisions with tomorrow in our mind and formulating means of preparing for future decisions so that they may be made more rapidly, economically and with as little disruption to the business as possible.”

(ii) Subjective or Conceptual Planning:

As said above long-range plans may be strategic or managerial in nature. Strategic plan deals with the major, the most vital and basic objectives, basic policies and corporate strategies. This plan covers all areas of business activities such as profits, capital expenditure for growth or diversification of organization structure, managerial philosophy, pricing and leadership position in the market, etc. It also takes care of uncontrollable characteristics of environment.

2. Administrative and Operational Planning:

This planning is also known as Programming. It takes care of establishing short-term objectives and action programs for each of the functional areas. In each of the functional area it takes care of budge and functional programs.

In any organization divisions/departments are required to provide for survival, growth and efficiency within the broad framework of the strategic or long-range plan of the corporation. These administrative plans are essential to point out how an enterprise uses its available resources optimally within the strategic objectives to meet the standards of the organization.

To be clear- Strategic planning indicates what an enterprise would do and the administrative plans point out how to accomplish these objectives. Administrative and operational plans must be integrated with planned control machinery of the organization in order to ensure the achievement of goals or standards as per plan.

Planning – The Six P’s: Purpose, Philosophy, Promise, Policies, Plans and Priorities

The six P’s state the fundamental requirement of planning.

These P’s are as follows:

1. Purpose:

The first need of planning is the purpose. An effective planning requires a clear understanding of the purpose of planning. The reasons for the existence of the organisation must be stated. The purpose of an organisation may be to increase profits or increase market share or introduce more products etc. The purpose should be clear and elaborate.

2. Philosophy:

It states the beliefs as to how the organisation’s purpose is to be achieved. The philosophy of an organisation may be based on profitability through quality or increasing turnover through consumer satisfaction etc., for a long term survival and growth the philosophy must adopt ethical conduct.

3. Promise:

It is an assessment of the strengths and weaknesses of the organisation based on the knowledge and assumptions of the environment. With the help of business forecasting and other methods some conclusions are made for the future environment trends. By knowing the strengths and weakness of the organisation management can deal with changing environment in a more effective way.

4. Policies:

Policies are the general statements for the guidance of the personnel. They are the guidelines and constraints which aid in management thinking and action. An organisation may have production policies, financial policies, marketing policies; accounting policies, personnel policies, etc. These policies form a basis for managerial actions.

5. Plans:

These are the objectives and action statements. Objectives are the goals of an organisation and action statements are the means of achieving them. Plans guide us for reaching the goals and helping in knowing the progress at different stages.

6. Priorities:

An organisation must fix goal priorities. The resources of finance, materials, personnel, etc., are limited and these are to be allocated as per the priorities set. The high priority goal will have preference for allocation of resources. The priorities of goals must be based on the philosophy and premises of the organisation as well as on economic, political and social environment.

Planning – 10 Main Elements

The following ten elements are included in some degree or other in any comprehensive planning activity:

1. Organisation Planning determines what functions an organisa­tion requires, relates these functions in a systematic fashion, assigns responsibilities to individual positions, and installs and periodically reviews organisation plans.

2. Product Planning coordinates the efforts of all departments in maintaining and developing the most profitable product line. Product planning includes the addition of new products, addition of new product lines, and elimination of existing products.

3. Facility planning is the determination of needed production facilities, their types, capacities, quantities and locations.

4. Operations planning is concerned with production methods, standard practices, types and quantities of production equipment, and production capacities.

5. Material Supply and Inventory Planning is concerned with the type and quantity of stock to be acquired and placed in inventory and its systematic location, storage and control. Its purpose is to supply the desired quantity of product to the customer and to the various segments of the enterprise.

6. Financial Planning provides a central point for determining the organisations’ future financial requirements and objectives, for develop­ing plans and policies to fulfill those requirements and objectives and for developing controls to assure compliance with financial plans and goals. The financial plan outlines ways and means for meeting the company’s financial requirements within a prescribed course and within a specified time.

7. Commercial Planning is the estimation of future commercial conditions, the appraisal of these conditions and the preparation of plans to capitalise on them.

8. Production Planning deals with the effort for bringing together the necessary men, material, machinery and tools to create a product or service for offering in the market.

9. Human Resource Planning aims to see that the company is provided with the number and type of people it will need in the future. The human resource plan outlines ways and means of providing the enterprise with an adequate number of properly experienced and trained people when and as they are needed. It also provides a means for helping management achieve the maximum utilisation of human resources.

10. Development Planning investigates ways and means of securing opportunities for utilising the enterprise’s total resources. The develop­ment plan outlines ways and means whereby the company’s resources may be employed to the maximum advantage, taking into account all aspects of the company’s capabilities and appraising the effect of possible changes in social, economic and political conditions.

In conclusion it may be re-iterated that planning is essential because it enables business enterprise to meet the contingencies of the future. But to be effective a plan must, as pointed out by Urwick, – (i) be based on a clearly defined objective; (ii) be simple; (iii) provide for proper analysis and classification of actions, that is, which establishes standards; (iv) be flexible; (v) be balanced, and use available resources to the utmost before creating new authorities and new resources.

Planning – 4 Important Approaches: Top-Down, Bottom-Up, Composite and Team  

Different managers adopt various approaches to planning. These may be based on degree of participation, delegation of authority, capabilities of lower level managers etc.

Following approaches are followed for planning:

Approach # 1. Top-Down:

This approach means that all types of planning is done at the top of hierarchy and implementation is done at lower levels of management. Top-down approach is generally followed in family managed organisations or by traditional or conservative managers. The top level management determines objectives, formulates basic policies, and devises courses of action for achieving the goals.

The managers at the lower level have no say in planning but are involved in implementation. The management is highly centralised and managers at higher level are always occupied with preparing plans and exercise authority.

This approach is based on the assumption that the managers working at higher level are well experienced and professionally qualified. In practice, it is found that managers at lower level are also indirectly involved in planning by seeking their suggestions and ideas.

Approach # 2. Bottom-Up:

As is well known that thinking and doing are interrelated, in this approach efforts are made to involve those persons in planning who will be assigned their implementation also.

Bottom-up approach may also be referred to as participating planning, where rough estimates made at the lower levels of management and then these are communicated to higher levels. The top level management reviews the figures received from lower levels and then approves the plans.

This approach will give good results provided managers at lower level have the requisite knowledge, awareness and creativity to undertake planning. The top executives unify and co-ordinate various sub-plans, originating from lower levels. The managers at lower levels will not only implement the plans but will be helping in initiating them also.

Approach # 3. Composite:

Composite approach is a combination of top-bottom and bottom-up approaches. In composite approach top executives provide guidelines, parameters and limitations under which middle and lower level managers are expected to formulate tentative plans which are communicated to top level managers for review and approval. The top executives have the final authority for making plans. This approach has the advantage of involving lower level managers in thinking process and prepare tentative plans in given parameters.

Approach # 4. Team:

In team approach more and more managers are involved in formulating plans. Those managers who are associated in planning process will be helpful in implementing them. The managers associated with different activities are asked to prepare tentative plans for their areas and then submit the proposals to their Chief Executive.

The final approval of plans is given by the Chief Executive. The team of managers works as a brain of the Chief Executive and suggests various proposals. The team approach is especially useful when the task of preparing plans requires specialised knowledge of different areas.

Planning – Classification of Planning Premises: External, Internal, Tangible, Intangible, Controllable, Uncontrollable and a Few Others  

Planning premises may be classified as under:

1. External Premises:

External premises are lying outside the firm. Economic, technological, political, social conditions and market conditions are some of the kinds of external premises. Economic premise refers to purchasing power of the customers, technological premise refers to application of latest technology, political premise refers to policy of the governments, social condition refers to culture and market condition refers to demand and supply forces for the product or service.

2. Internal Premises:

Internal premises are existing within a business enterprise. Human resources, material resources, machine resources, financial resources and methods are some of the kinds of internal premises. The most important internal premises are competence of managerial personnel and skill of labour force.

3. Tangible Premises:

Quantified factors can be termed as tangible premises. Money, time and units of production are some of the kinds of tangible premises. Money can be quantified as rupees, time can be quantified as seconds, minutes and/or hours and units of production can be quantified as Kilogram, Litre, Horse Power and the like.

4. Intangible Premises:

Qualitative factors can be termed as intangible premises. Goodwill of the company, loyal of the employees, public relations, employee morale and motivation are some of the kinds of intangible premises. Both tangible and intangible planning premises must be taken into account in planning.

5. Controllable Premises:

Premises which are entirely within the control and realm of management are known as controllable premises. Policies, methods, procedures, systems, programmers, rules and regulations are some of the kinds of controllable premises.

6. Uncontrollable Premises:

Premises which cannot be controllable by the realm of management are known as uncontrollable premises. Besides, these types of premises cannot be unpredictable. Even though, uncontrollable premises should be taken into account while framing a plan. War, natural calamities, new discoveries and inventions and human behaviour are some of the kinds of uncontrollable premises.

7. Semi-Controllable Premises:

Some premises can be predicted and controllable to some extent are known as semi-controllable premises. In other words, the management has partial control on some premises which are known as semi-controllable premises. Trade union and management relations, employer and employee relations, superior and sub­ordinate relations, inter-department relations, supply position in market are some of the kinds of semi-controllable premises.

8. Fixed or Constant Premises:

Some premises have not changed irrespective of action taken by the management. They are definite, known and well understood. Hence, the management need not consider these types of premises. While framing a plan, men, machine and money are some of the kinds of fixed or constant premises.

9. Variable Premises:

Some premises may be changed in relation to the course of action taken by the management. These premises have a significant bearing on the success of the plan. Hence, the management should consider these premises with due importance while formulating plans. Sales volume and production expenses are some of the kinds of variable premises.

10. Foreseeable Premises:

Some premises are definite and well known and can be foreseen with certainty. All fixed or constant premises can be treated as foreseeable premises.

11. Unforeseeable Premises:

Some premises cannot be controllable. Hence, these types of premises cannot be unpredictable also. War, strike, natural calamities, consumer preferences and consumer taste are some of the kinds of unforeseeable premises.

Planning – 8 Main Objectives: Reduce Uncertainty, Bring Co-Operation and Coordination, Economy in Operation, Anticipate Unpredictable Contingencies and a Few Others   

Plans have to realize the following objectives:

1. Reduce Uncertainty:

As planning is done in an uncertain atmosphere. Hence, the manager must prepare his plans in such a way, if it does not avoid uncertainty; at least it must reduce the uncertainty.

2. Bring Co-Operation and Coordination:

A perfect and efficient planning will bring co-operation and coordination among the departments and all levels of managers and works to avoid/reduce the conflicts among various groups working under a roof. At the same time proper planning avoids duplication of work.

3. Economy in Operation:

As in planning process, which is decision-making, a manager selects the optimal course of action to reach the organizational goals the organization does it most economically.

4. Anticipate Unpredictable Contingencies:

In spite of all care taken by a manager during planning process, some events could not be predicted. These events may cause difficulty for the smooth functioning of the enterprise. The planning provides means to meet such contingencies and tackle them successfully.

5. Achieving the Pre-Determined Goals:

Plans are prepared to achieve organizational goals. The planning process guides the manager toward achieving the goals effectively. The timely achievements of objectives are possible only through the effective planning.

6. Reduce Competition:

In fact a healthy competition is a step for growth. An unhealthy competition is an enemy of the manager. Hence, a proper and effective planning keeps competition under control and makes it a healthy one rather than unhealthy one.

Planning – 3 Methods: Objective Plans, Standing Plans and Master Plans

According to the usage and nature of planning, the methods of planning are divided into the following categories:

Method # 1. Objective Plans:

Objectives are treated as basic plans. These basic plans are necessary for all types of planning operation. The entire management activity is geared upon only through the formulation of objective plans. Objectives not only dominate the planning activity but also play an important role in the managerial work of organising, directing and controlling.

Method # 2. Standing Plans:

Standing plans include policies and procedures and they are liable to repetitive action. An action may be divided into two categories i.e., repetitive and non- repetitive actions.

Standing plans provide a ready guideline for solving recurring problems. Standing plans will be of no use if the problems do not recur in an organisation. Special problems are not solved with the help of standing plans but solved in a different way. Standing plans limit the freedom of manager for ensuring integrated and co-operative action. The reason is that the manager should adopt policies and procedures in action.

Method # 3. Master Plans:

Master Plan covers the complete course of action along with consideration of time and strategy. Small plans are added together in an orderly way to speed up the course of action. In terms of scope, plans may be either broad or detailed in character. If the plans are prepared function-wise, plans may be concerned with production, sales, purchase and similar activities.

Planning – Top 12 Advantages: Planning Offsets Future Uncertainty and Change, It Tackles Increasing Complexity in Modern Business and a Few Others  

The following points emphasise the importance and benefits of planning:

Advantage # 1. Planning Offsets Future Uncertainty and Change:

A business concern has to work in an environment which is uncertain and ever-changing. Planning helps the manager carving out the future course of action and this brings a higher degree of certainty and order into the organisation than would be present without planning.

Advantage # 2. It Tackles Increasing Complexity in Modern Business:

To run a modern business undertaking, there is need for a large number of people with different specialisation and complex machines. This makes it necessary for the management to depend on planning to get a clear idea of what is to be done, when it is to be done, where it is to be done and how it is to be done.

Advantage # 3. It Helps Co-Ordination:

Planning, through its defined objectives, well-publicised policies, programmes and procedures, helps the management in the co-ordination process. According to Koontz and O’Donnell, “plans are selected courses along which the management desires to co­ordinate group action.”

Advantage # 4. It Helps in Exercising Effective Control:

Planning involves the determination in advance of the work to be done, the person responsible to do it, the time to be taken to do that work and the costs to be incurred. This makes it easy to compare the actual performance with the planned one. In the case of deviations, steps may be taken to find out the reasons for such deviations. Thus, planning helps in exercising effective control.

H.G. Hicks has rightly said that “planning is clearly a prerequisite for effective controlling. It is utterly foolish to think that controlling could be accomplished without planning. Without planning, there is no pre-determined understanding of the desired performance.”

Advantage # 5. It Helps in the Proper Utilisation of the Company’s Resources:

As planning involves deciding in advance of what is to be done, when, where, and by whom it is to be done, etc., there is a possibility for the proper utilisation of company’s resources and for the achievement of company’s objectives at the cheapest and the best manner.

Advantage # 6. It Facilitates Unity of Action:

Under planning, policies, procedures and programmes are predetermined and every decision and action should be within the framework of predetermined policies and procedures and programmes. This facilitates unity of action and also avoids confusion or misunderstanding at any level.

Advantage # 7. It Helps in Avoiding Business Failures:

As planning involves the selection of best objectives, unity of action, co-ordination of activities, economy in operation and offsetting of future uncertainty and change, there is a great possibility of avoiding business failures.

Advantage # 8. Focuses Attention on Organisation’s Goals:

Planning helps the manager to focus attention on the organisational goals and activities. This makes it easier to apply and coordinate the resources of the organisation more efficiently. The whole organisation is made free to embrace identical goals and collaborate in achieving them.

Advantage # 9. Improves Competitive Strength:

The enterprises which adopt planning will have a competitive edge over other enterprises which do not have planning. This is because, planning enables the enterprises to discover new opportunities and thereby shape its own future. According to Earnest Dale, the enterprises which have planning continually monitor the environment for new ideas and developments.

Advantage # 10. Improves Adaptability:

Planning helps the organisation in coping with the changing environment. Planning is looking ahead and is anticipatory in nature. It means planning precedes action. The anticipation of future events and changing conditions prepares the organisation to meet them and adapt them for managing the operations effectively.

Advantage # 11. Guides Decision-Making:

The success of an organisation depends to a great extent on the type of decisions that are made at the various levels of an organisation. Decision-making involves making a choice from the various available alternatives after evaluating each of these. Planning targets, objectives and course of action provide managers with guidelines and criteria against which to evaluate alternatives and choose those which are the most suitable. Thus, planning guides decision-making.

Advantage # 12. Secures Economy in Operation:

As planning involves the selection of the most profitable course of action after evaluating the various alternatives, the enterprise can achieve the best results at a minimum cost.

Planning – 6 Major Disadvantages: Difficulty of Accurate Premising, Problems of Rapid Change, Internal Inflexibilities, External Inflexibilities and a Few Others

Planning as a management function is essential for every manager and every organization but there are some practical problems in proper planning which make it ineffective.

The major problems and limitations of effective planning are as follows:

Disadvantage # 1. Difficulty of Accurate Premising:

Planning exercise is undertaken on the basis of planning premises which are determined by a large number of factors in the environment. These factors are dynamic. Therefore, a limiting factor in planning is the difficulty in establishing accurate premises. Since the future cannot be known with accuracy, premising is subject to a margin of error. Though this margin of error can be minimized by making suitable forecast of future events, perfection cannot be expected.

Since long-term planning requires peeping into the distant future which is not certain, it is suggested that undertaking long- term planning, particularly in two situations is not beneficial- (i) in the formative stage of the organization because of non-availability of adequate information about the impact of environment on organizational functioning, and (ii) the environment in which the organization operates is unstable and uncertain owing to social, technological, and other changes.

Disadvantage # 2. Problems of Rapid Change:

Another problem which is related to the environment is its rapid change. In a rapidly changing environment, planning process, particularly for long- term plans, becomes quite complicated making planning extremely difficult. Very often, there is succession of problems; new problems tend to emerge even before solving the existing problems. Generally, present conditions tend to weigh heavily in planning. As a result, planning exercise undertaken in one period may not be relevant for another period because the conditions in two periods may be quite different.

Disadvantage # 3. Internal Inflexibilities:

While going through the planning process, managers have to work in a set of given variables. These variables often provide less flexibility in planning which is needed to cope up with the changes in future events. Such inflexibilities may be either internal to the organization or external to it. Because of these inflexibilities, there are limitations for adopting rational approach of planning.

The major internal inflexibilities are as follows:

(i) Psychological Inflexibility:

Psychological inflexibility is in the form of resistant to change. Managers and employees in the organization may develop patterns of thought and behaviour that are hard to change. They look more in terms of present rather than future. For them, present is not only more certain but is also more desirable and more real. They believe that “if they do not take care of the present, future will not be there.” For them, planning tends to accelerate change and unrest. Thus, this approach works against rational planning because planning often depends on the willingness of people to accept change.

(ii) Policy and Procedural Inflexibility:

Another internal inflexibility emerges because of organizational policies and procedures. Once these are established, they are difficult to change. Though these policies and procedures are meant to facilitate managerial action by providing guidelines, they often tend to be too exacting and numerous that they leave very little scope for managerial initiative and flexibility. Since managers have to plan for future which is not static but changing, they often find themselves in great constraints. Such problems are more prominent in bureaucratic organizations where rules and procedures become more important than results.

(iii) Capital Investment:

In most cases, once funds are invested in fixed assets, the ability to switch over to future course of action becomes rather limited, and present investment itself becomes a planning premise. During the entire life of the fixed assets, this inflexibility continues unless the organization can reasonably liquidate its investment or change its course of action, or it can write off the investment. However, these options are quite difficult to adopt.

Disadvantage # 4. External Inflexibilities:

Besides the internal inflexibilities, managers are confronted with external Inflexibilities and they do not have control over these. For example, managers have little or no control over economic, political, technological, and social forces. Whether these change quickly or slowly, they do stand in the way of effective planning.

Three environmental factors generate more inflexibilities for an organizational planning:

(i) Political Climate:

Every organization, to a greater or lesser degree, is faced with the inflexibility of the political climate existing at any given time. Attitudes of government towards business, taxation policy, regulation of business, etc. generate constraints on the organizational planning process.

(ii) Trade Unions:

The existence of trade unions, particularly those organized at the national level, tends to restrict freedom of planning. Apart from wages and other associated benefits, they affect the planning process by putting limitations on the work that can be undertaken by the organization. They set up the work rule and productivity. To that extent, managers are not free to make decisions of their choice, including formulation of a new type of plan.

(iii) Technological Changes:

The rate and nature of technological changes also present limitations on planning. An organization is engaged in its process with a given technology. When there is a change in technology, it has to face numerous problems resulting in higher cost of production and less competitive advantage in the market. However, the organization cannot change its technology so frequently. Thus, higher is the rate of technological changes, more would be the problem of long-term planning.

Disadvantage # 5. Time and Cost Factors:

Planning process is quite time-consuming and costly. Various steps of planning may go for sufficiently high level of precision: managers can spend unlimited amount of time in forecasting, evaluating alternatives, developing supporting plans, etc. if they do not have limitations of time. Beside time factor, planning is also limited because of cost factor.

Planning cost increases if planning becomes more elaborate and formalized. Additional staff is to be appointed; paper work increases. Looking at the cost aspect, many people have commented that ‘planning consumes more but contributes less’. Thus, planning cannot be taken beyond the level at which it justifies its cost.

Disadvantage # 6. Failure of People in Planning:

Apart from the above factors, sometimes, people involved in planning process fail to undertake planning properly. There are many reasons why people fail in planning.

Some of the major reasons are lack of commitment to planning, failure to formulate sound plans, lack of clear and meaningful objectives, tendency to overlook planning premises, failure to see the scope of plan, failure to see planning as a rational approach, excessive reliance on the past experience, lack of top management support, lack of delegation of authority, lack of adequate control techniques, etc. These factors are responsible for either inadequate planning or wrong planning in the organization.