Planning Class 12 Notes Business Studies Chapter 4 - CBSE

Chapter: 4

What Are Planning ?

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
Budgets	Policies	Objectives
Programmmes	Procedures	Strategies
Projects	Methods
	Rules

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