Planning in deciding in advance what to do and how to do. Before doing something, the manager always formulates an idea of how to work on a particular task.
Planning is not a guarautee of success in dynamic environment.

Rules are specific statements that tell what is to be done.
1. A ‘rule’ reflects a managerial decision that a certain action must or must not be taken.
2. They are usually the simplest type of plans because there is no compromise or change unless a policy decision is taken.
3. Rules are rigid and definite plans that specify what is to be done or not to be done is given situations.
4. Rules are to be enforced rigidly and there is generally a fine or penalty for violation of rules. They do no allow for any flexibility or discretion.

(a) Policies
(b) Objectives
(c) Strategies.

Informal organisation

Organisation is a structure may be organisation of system of job positions, the roles assigned to them and the authoring relationship among various positions.

Louis Allen, “Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the same.
Wheeler, “Internal organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company It is essentially a blue print for action resulting in a mechanism for carrying out function to achieve the goals set up by company management”. In Wheeler’s view, organization is a process of fixing duties and responsibilities of persons in an enterprise so that business goals are achieved.

Planning : It is deciding in advance what is to be done. When a manager plans, he projects a course of action for the future, attempting to achieve a consistent and coordinated structure of operations aimed at the desired results. 
Importance of planning:
(i) Planning provides direction By stating in advance how work is to be done, planning provides direction for action. It reduces aimless activity and makes action more meaningful. 
(ii) Planning reduces the risk of uncertainty Planning is always done for future and future is uncertain. With the help of planning, possible changes in future are anticipated and various activities are planned in the best possible way. 
(iii) Planning facilitates decision-making Planning is an intellectual activity. It helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable option. Thus, decision- making is inherent in planning. 
(iv) Planning reduces overlapping and wasteful activities : Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since, planning ensures clarity in thought and action, hence, the work is carried on smoothly without any interruptions.
(v) Planning promotes innovative ideas : Planning is the first function of management, where new ideas can take the shape of concrete plans. It is the most challenging job or an activity of the management as it guides all future actions, leading to growth and prosperity of the business.

Planning is deciding in advance what to do, how to do and by whom.It bridges the gap between 'where we are and where we want to go'.

Planning : It is deciding in advance what is to be done. When a manager plans, he projects a course of action for the future, attempting to achieve a consistent and coordinated structure of operations aimed at the desired results. 
Importance of planning:
(i) Planning provides direction By stating in advance how work is to be done, planning provides direction for action. It reduces aimless activity and makes action more meaningful. 
(ii) Planning reduces the risk of uncertainty Planning is always done for future and future is uncertain. With the help of planning, possible changes in future are anticipated and various activities are planned in the best possible way. 
(iii) Planning facilitates decision-making Planning is an intellectual activity. It helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable option. Thus, decision- making is inherent in planning. 
(iv) Planning reduces overlapping and wasteful activities : Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since, planning ensures clarity in thought and action, hence, the work is carried on smoothly without any interruptions.
(v) Planning promotes innovative ideas : Planning is the first function of management, where new ideas can take the shape of concrete plans. It is the most challenging job or an activity of the management as it guides all future actions, leading to growth and prosperity of the business.

Planning is the managerial function dealing in setting up of objectives and developing appropriate course of action to achieve them. The key elements in the concept of planning are:
(a) Setting up of objectives for a given time period
(b) Identifying the alternative course of action to achieve it
(c) Choosing the best alternative

The process of organising consists of the following steps:
(i) Identification and division of work.
(ii) Departmentalisation.
(iii) Assignment of duties.
(iv) Establishing reporting relationships.
1. Identification and division of work 
The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. Work is divided into manageable tasks, so that duplication can be avoided and workload can be shared among employees.
2. Departmentalisation
Once, work has been divided into small and manageable activities, then those activities which are similar in nature, are grouped together. This process is called departmentalisation. departments can be created on the basis of products, functions and territory. This brings specialisation in operations.
3. Assignment of Duties
Once the departments are created, each department is placed under the charge of an individual, called department head. Then, each job is allocated to an individual, according to his knowledge and skill. There should be a proper match between the nature of jobs and the ability of an individual.
4. Establishing Reporting Relationships
In the organisation, each employee has some authority as well as responsibility. It is necessary that every individual must know whom he has to take orders from and to whom he is answerable. This creates superior-subordinate hierarchy and helps in coordinating various activities in the organisation. 

Planning is of vital importance in the managerial process. No enterprise can achieve its objectives without systematic planning.
“Planning is the heart of management”
The following points highlight the importance of planning function of management :
1. Planning provides directions : By stating in advance how work is to be done, planning provide direction for action.
If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. Departments and individuals in the organisation are able to work in coordination
Planning keeps the organisation on the right path.
If there was no planning, employees would be working in different directions and the organisation would not be able to achieve its goals efficiently.
2. Planning reduces the risks of uncertainty : Business enterprises operate in an uncertain environment and face several types of risks. Planning enables these enterprises to predict future events and prepare to face the unexpected events. With the help of planning, managers can identify potential dangers and take steps to overcome them. Thus, planning helps risk and uncertainty.
3. Planning facilitates decision-making : Decision-making involves searching for various alternative courses of action, evaluating them and selecting the best course of action. Under planning, targets are laid down. With the help of these targets, managers can better evaluate alternative courses of action and select the best alternative. Plans lay down in advance what is to be done and how it is to be done. Therefore, decisions can be taken with greater confidence.
4. Planning reduces overlapping and wasteful activities : Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. There is no confusion and misunderstanding. Useless and redundant activities are minimized or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them.
5. Planning promotes innovative ideas : Planning is thinking in advance and, therefore, there is scope of finding better ideas and better methods and procedures to reach the objectives/goals of the enterprise. This forces managers to think differently about the future of the organizations from the present. Thus, planning makes the managers innovative and creative.
6. Planning establishes standards for controlling : Planning provides the goals or standards against which the actual performance can be measured and evaluated. A comparison of actual performance with the standards helps to identify the deviations and to take corrective action. Planning makes control meaningful and effective. ‘Control is blind without planning.” Thus, planning provides the basis of control.

The importance of organizing may be summarise as follows :-
(a) Benefits of specialization : The activities are grouped very carefully into specialized jobs on the basis of similarity. repetitive performance of a particular task leads to specialization.
(b) Clarity in working relationships : The jobs of managers and non managers are clearly defined & differentiated.
(c) Effective administration : Organising provides a clear description of a jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationship enables proper execution of work. This brings effectiveness in administration.
(d) Source of support and security improves job satisfaction : Organising is a source of support, security and satisfaction to managers and employees in performing their assigned tasks. It recognizes the status levels of members; each one of the members enjoys a definite status and position in the organisation. In a sound organisation every individual is assigned the job for which he is best suited. The assignment of right jobs to right persons improves job satisfaction among the employees.
(e) Optimum utilization of resources : A sound organisation helps In the optimum utilization of technological and human resources by avoiding duplication of work and overlapping of efforts.
(f) Adaptation of change : The process of organizing allows a business enterprise to adapt itself according to changes in the business.

A functional structure is an organizational design that groups similar or related jobs together. 
1. functional structure in formed by grouping together the entire work to be done into major functional department.
2.  All deptt are report to a coordinating head
3.  These dept may further be divide into sections.
Advantages/Merits
1. Specialisation : A functional structure leads to occupational specialization since emphasis is placed on specific functions. this promotes efficiency in utilization of manpower as employee perform similar tasks within a department and are able to improve performance.
2. Efficiency : It helps in increasing managerial and operational efficiency and this results in increased profit.
3. Minimises costs : It leads to minimum duplication of efforst which results in economies of scale and thus lowers cost.
4. Better control and coordination : It promotes control and coordination within a department because of similarity in the tasks being performed.
i. Proper attention : It ensures that different functions get due attention.
5. Ease in training employees : In makes training of employees easier as the focus is only on a limited range of skills.
Disadvantages/Demerits
1. Functional empires : A functional structure places less emphasis on overall organizational objectives than the departmental objectives. Such practices may lead to functional empires wherin the importance of a particular function (or department) may be overemphasised.
2. Problems in coordination : Pursuing departmental interests at the cost of organizational interests can also hinder the interaction between two or more departments. It may lead to problems in coordination among different departments.
3. Conflict of interests : A conflict of interests may arise among departments when the interests of two or more departments are not compatible.
4. Inflexibility : It may lead to inflexibility as people with same skills and knowledge base may develop a narrow perspective and thus have difficulty in appreciating any other point of view.

The process of organising consists of the following steps:
(i) Identification and division of work.
(ii) Departmentalisation.
(iii) Assignment of duties.
(iv) Establishing reporting relationships.
1. Identification and division of work
The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. Work is divided into manageable tasks, so that duplication can be avoided and workload can be shared among employees.
2. Departmentalisation
Once, work has been divided into small and manageable activities, then those activities which are similar in nature, are grouped together. This process is called departmentalisation. departments can be created on the basis of products, functions and territory. This brings specialisation in operations.
3. Assignment of Duties
Once the departments are created, each department is placed under the charge of an individual, called department head. Then, each job is allocated to an individual, according to his knowledge and skill. There should be a proper match between the nature of jobs and the ability of an individual.
4. Establishing Reporting Relationships
In the organisation, each employee has some authority as well as responsibility. It is necessary that every individual must know whom he has to take orders from and to whom he is answerable. This creates superior-subordinate hierarchy and helps in coordinating various activities in the organisation.