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www.gyaniversity.com83MMPC001: Management Functions and Organisational ProcessesBriefly describe the nature of Planning Process and its necessity for an organisation. Explain different types of planning and their requirement.Planning is necessary for several important reasons, all of which contribute to the overall success and sustainability of an organization. First, it helps in the selection of optimal objectives by analysingdifferent alternatives and choosing the best possible path. By carefully planning, organizations can ensure that the goals set are both realistic and achievable within given resource constraints.Second, planning manages complexities inherent in any organization. Every organization comprises individuals with diverse skills, beliefs, and motivations. A well-devised plan harmonizes these differences into a unified effort towards a common goal. This harmonization facilitates smoother coordination among different departments and levels of management, ensuring that everyone works together effectively.Third, the dynamic nature of the business environment characterized by rapid technological advances, changing consumer preferences, and evolving regulatory conditions makes planning essential. It allows organizations to anticipate and prepare for uncertainfuture events, thereby reducing the risk of being caught off guard. Planning provides a proactive approach rather than a reactive one, which is crucial for sustained success.Types of PlanningOrganizations use various types of planning depending on the scope, time frame, and level of decision-making involved.Corporate Planning: This type of planning encompasses setting broad organizational objectives and long-term strategies. It reflects the overall mission of the organization and is typically formulated by top management, considering both internal capabilities and external environmental conditions.Strategic Planning: Focused on long-term goals, strategic planning involves identifying opportunities, assessing threats, and matching the organization%u2019s strengths with external opportunities. This planning is generally carried out for periods of five years or more. It includes analysis of competitive situations and requires innovative thinking to stay ahead in a dynamic market.Tactical Planning: Falling between strategic and operational planning, tactical planning is concerned with the short-term actions required to implement parts of strategic plans. It is more focused and generally covers a period from one to three years. Middle management usually handles tactical planning with emphasis on current and near-future activities.