Planning is the primary function of management. It is the methodology by which certain objectives are identified and strategies are devised for its subsequent realization. It is a preparatory step. It is a systematic activity which determines what, why, how, when, how, who and where is going to perform a specific job.

Planning is considered to be a primary function of management for following reasons : 

(i) Planning precedes all functions of management i.e. Organizing , Staffing , Directing and Controlling.

(ii) Effective Planning provides the framework within which various managerial functions are performed . 

(iii) This feature is also known as the Primary of Planning , as the very nature of planning is to offer the basis of all other functions . 

Example: Think of a situation where you have been asked to organize a meeting for the staff members . Is it possible for you to make the necessary arrangements , unless the day of meeting is decided ? This simple example highlights , how Planning lays down the foundation for all other functions .

Concept of Policy : A Policy is verbal , written or implied , an overall guide for setting up boundaries that supply general limits and directions in which managerial actions takes place .

(i) Policies serve as a guideline for implementing a strategy . 

(ii) They are expressed in the form of general statements that guides managerial decision making and action . 

(iii) They lay down the broad parameters within which the Managers are expected to function . 

(iv) Well defined policies simplify the work of the business Managers and enables them to deal with the problems or solutions in an appropriate manner. 

(v) The application of a policy requires a Manager to exercise His / Her discretion to interpret in a particular manner . 

Concept of Rule : A rule is a type of plan that requires a specific and definite action with respect to a situation. 

(i) Rules are the simplest form of plans which specifies the action that must or must not be Taken i.e. The Do’s and Don’ts that Guide the behaviour of People. 

(ii) They are expressed in specific terms. 

(iii) There is no scope of flexibility or discretion in the application of the rules. 

(iv) Since , rules are essential for discipline and smooth operations of the business , a penalty is generally imposed on violation of a rule. 

(v) Rules may be changed only when there is a change in the policy.