PLANNING AND FORECASTING

Even though both planning and forecasting are known as equals, there basic difference. Planning is more comprehensive which includes many sub process and elements in order to arrive at decisions. These decisions may be in terms of what is to be done, and when to be done. Conversely, forecasting involves the estimate of future events and provides parameters to the planning. It may also involve many sub process and elements but these are used to project what will happen in future.

Forecasting may not require any commitment of action but may help in planning the future course of action, whereas commitment of actions is the basic ingredient of planning.

The major decisions in planning are made at the top level. But forecasting is normally taken at middle level or lower level.