BUSINESS STUDIES NOTES CBSE CLASS XII
4. Planning
Summary
Management begins with planning, as it makes the objectives of an organisation clear and specific. Planning lays down the foundation for effective management. It involves determining the future course of action on the basis of purpose, knowledge and estimates.
Meaning of Planning
• Planning involves deciding and working out the details of an intended action in accordance with the anticipated future conditions to facilitate realization of organizational goals.
• Planning involves deciding and working out the details of an intended action in accordance with the anticipated future conditions to facilitate realization of organizational goals.
Features of Planning
• Planning is a purposeful activity, as it involves determining various decisions and actions to be performed for achieving the goals of the organisation.
• Planning provides the basis of all other managerial functions. This is referred to as the primacy of planning.
• Planning is pervasive in nature as it is required in organisation of varying sizes and types and at various levels.
• Planning should be flexible in nature to deal with any change in the business environment.
• Planning is a continuous process, as there is perpetual need to make plans, implement them, and also to review or revise them to meet the needs of an organisation.
• Planning is futuristic in nature, as it looks ahead and determines future course of action.
• Planning involves choice among various alternatives, to select the best possible course of action to achieve the organizational goals.
• Planning is an intellectual activity, as it involves logical and systematic thinking to determine the future course of action.
• Planning lends to efficiency in operation, as it involves careful thinking before doing, which helps to avoid needless action.
• Planning is a purposeful activity, as it involves determining various decisions and actions to be performed for achieving the goals of the organisation.
• Planning provides the basis of all other managerial functions. This is referred to as the primacy of planning.
• Planning is pervasive in nature as it is required in organisation of varying sizes and types and at various levels.
• Planning should be flexible in nature to deal with any change in the business environment.
• Planning is a continuous process, as there is perpetual need to make plans, implement them, and also to review or revise them to meet the needs of an organisation.
• Planning is futuristic in nature, as it looks ahead and determines future course of action.
• Planning involves choice among various alternatives, to select the best possible course of action to achieve the organizational goals.
• Planning is an intellectual activity, as it involves logical and systematic thinking to determine the future course of action.
• Planning lends to efficiency in operation, as it involves careful thinking before doing, which helps to avoid needless action.
Importance of Planning
• Planning makes objectives clear and specific, which ensures focused managerial activities.
• Planning makes activities meaningful, as both employees and managers coordinate and understand the importance of their activities towards the accomplishment of organizational goals.
• Planning reduces the risk of uncertainly by anticipating the future threats and opportunities and by making provisions to meet them in a desired manner.
• Planning facilitates decision-making, as both evaluation and selection of the best course of action are done on the basis of planned targets much in advance to avoid a situation in which hasty and ad hoc decisions have to be made.
• Planning facilitates coordination of various activities within and among the departments for achievement of common goals.
• Planning promotes creativity, as it stimulates planners to be innovative and creative in their approach to perform the present and future business operations.
• Planning provides the basis of control as it furnishes standards against which actual performance is measured.
• Planning leads to efficiency and economy, as the plans indicate clearly how the various tasks have to be done and how resource have to be utilised.
• Planning makes objectives clear and specific, which ensures focused managerial activities.
• Planning makes activities meaningful, as both employees and managers coordinate and understand the importance of their activities towards the accomplishment of organizational goals.
• Planning reduces the risk of uncertainly by anticipating the future threats and opportunities and by making provisions to meet them in a desired manner.
• Planning facilitates decision-making, as both evaluation and selection of the best course of action are done on the basis of planned targets much in advance to avoid a situation in which hasty and ad hoc decisions have to be made.
• Planning facilitates coordination of various activities within and among the departments for achievement of common goals.
• Planning promotes creativity, as it stimulates planners to be innovative and creative in their approach to perform the present and future business operations.
• Planning provides the basis of control as it furnishes standards against which actual performance is measured.
• Planning leads to efficiency and economy, as the plans indicate clearly how the various tasks have to be done and how resource have to be utilised.
Types of Plans
• Goals are the ambition, or future position, which an organisation seeks to realize through its existence and activities.
• Objectives are the ends which managers seek to reach through their managerial functions of planning, organizing, directing and controlling.
• Policies are the general statements that provide the framework for managerial decision-making and action.
• Procedures are the plans that determine the method or chronological sequence in which a particular activity must be performed in an organisation.
• Programmes are a complex of goals, policies, procedures, rules, tasks assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action supported by a budget.
• Rule is a specific and definite statement describing the action to be taken or to be avoided in a given situation.
• Method refers to a well-defined and specific way of performing the jobs of repetitive and routine nature.
• A budget is a statement of forecasted revenue and associated cost of any activity or project.
• Goals are the ambition, or future position, which an organisation seeks to realize through its existence and activities.
• Objectives are the ends which managers seek to reach through their managerial functions of planning, organizing, directing and controlling.
• Policies are the general statements that provide the framework for managerial decision-making and action.
• Procedures are the plans that determine the method or chronological sequence in which a particular activity must be performed in an organisation.
• Programmes are a complex of goals, policies, procedures, rules, tasks assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action supported by a budget.
• Rule is a specific and definite statement describing the action to be taken or to be avoided in a given situation.
• Method refers to a well-defined and specific way of performing the jobs of repetitive and routine nature.
• A budget is a statement of forecasted revenue and associated cost of any activity or project.
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