Planning first and the most important function of

Solution

The plans can be of various types as follows: Box 1: Terms to know in relation to planning Vision desired future position of company and where it wants to reach in the long term Mission - defines company's business and what the organization does Objectives: Objectives can be said to be the desired future position that the management would like to reach with respect to specific areas of business. It usually originates from the mission statement with more specific desired position Strategy: A strategy provides the broad contours of an organisation's business. It will also refer to future decisions defining the organisations direction & scope in the long run. Policy: Policies are general statements that guide thinking or channelise energies towards a particular direction. Procedure: Procedures are routine steps on how to carry out activities. Rule: Rules are specific statements that tell what is to be done. Budget: A budget is a statement of expected results expressed in numerical terms. It is a plan which quantifies future facts & figures.