First two steps of planning are as follows:
(i) Setting objectives Objectives specify what an organisation wants to achieve. Therefore, the first step in planning is to set up clear objectives for the organisation as well as all the departments of the organisation.
(ii) Developing premises Premises are the base upon which plans are drawn. They may be forecasts, existing plans or past information. Therefore, the manager .is required to make certain assumptions about the future, called premises.