Planning Class 12 Notes Business Studies Chapter 4 - CBSE
Chapter: 4
What Are Planning ?
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Planning is deciding in advance what to do and how to do. Planning is closely connected with creativity and innovation. Planning involves setting objectives and developing appropriate course of actions to achieve these objectives.
| Importance of Planning | Features of Planning |
| Planning provides directions | Planning focuses on achieving objectives |
| Planning reduces the risks of uncertainty | Planning is a primary function of management |
| Planning promotes innovative ideas | Planning is pervasive |
| Planning facilitates decision making | Planning is continuous |
| Planning establishes standards for controlling | Planning is futuristic |
| Planning reduces overlapping and wasteful activities | Planning involves decision making |
| Planning is a mental exercise |
| Limitations of Planning | Process of Planning |
| Planning leads to rigidity | As planning is an activity, so there are certain logical steps which are to be followed by managers. |
| Planning may not work in a dynamic environment | Setting Objectives |
| Planning reduces creativity | Developing Premises |
| Planning involves huge costs | Identifying alternative courses of action |
| Planning is a time-consuming process | Evaluating Alternative Courses |
| Planning does not guarantee success | Selecting an alternative |
| Implementing the plan | |
| Follow-up Action |
Types Of Plans
| Single use Plans | Repeated Use/Standing Plans | Other Plans |
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Single Use Plans
A single-use plan is developed for a one-time event and they are not likely to be repeated in future. The duration of this type of plan depends upon the type of the project.
| Budgets | Programmes |
| Budget is a quantitative plan which includes facts, figures and numbers. | Program includes policies, rules and procedures to achieve the objective. |
Standing Plans
| Policies | Procedures | Methods | Rules |
| Policies are the general guidelines which are to be followed by the organization. | Procedure includes the steps which are to be followed to complete the task or an activity. | Method is the way in which task is to be performed. | Rules are specific statements which are rigid in nature |
Other Plans
| Objectives | Strategies |
| Objectives are ends where the organization wants to reach. | It is a plan to achieve organizational objectives. |
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