CHAPTER 4 PLANNING (CLASS 12)CBSE

UNIT 4

 Planning

Planning is the process of thinking about and organizing the activities required to achieve a desired goal. Planning is also a management process, concerned with defining goals for a company's future direction and determining the missions and resources to achieve those targets. Planning is a continuous and pervasive process.Planning is important as by nature it enquirers about organizational goals and involves decision making about desired ways and means to achieve goals. Planning is the process by which managers establish goals and define the methods by which these goals are to be attained.

1.              1.  Planning leads to rigidity it is a ------------------  

a)     Feature of planning

b)    Limitation of planning

c)     Advantage of planning

d)    Importance of planning

2.                     2. What to do and how to do is concerned with. ---------   

a)     Planning

b)    Organising

c)     Controlling

d)    delegating

3.                 3.   selection of employee in any business is a ----------------  

a)     procedure

b)    process

c)     strategy

d)    plan 

4.     The first step in planning is -------------- 

a)     Setting up the objectives

b)    Implementing the plan of action

c)     Follow up action

d)    Selecting an alternate plan of action. 

5.     Do you think planning works in a changing environment?

a)     Yes

b)    No

6.     What are the steps taken by management in the planning process?

The planning process involves the following steps

(i) Establishing Objectives The first step in planning is to determine objectives which must be realistic, specific and clear so as to specify what is to be accomplished by the network of policies, procedures, strategies etc.

(ii) Developing Premises They include assumptions or forecasts of the future and unknown conditions that will affect the operations of the plans. They provide an idea about the future which facilitates the work of planning.

(iii) Identifying the Alternative Courses of Action The next step in planning is to identify the various alternatives available to achieve the objectives.

(iv) Evaluating Alternative Courses The merits and demerits of different courses of actions are evaluated in the light of objectives to be achieved and their feasibility is judged i.e., how far they will be successful in helping to achieve the objective.

(v) Selecting an Alternative The next step is to find out the most suitable course to be followed. The efforts are directed towards selecting that course. Which increases efficiency in the organisation by maximising output and profits at the minimum costs.

(vi) Implement the Plan At this step the best alternative chosen is put to use.

(vii) Follow Up Only putting the best alternative to action is not enough. The 

future is uncertain and dynamic. Therefore, it becomes important to check back whether the plan is giving results or not

7.     Why is it that organisations are not always able to accomplish all their objectives?

Organisations are not always able to accomplish all their objectives due to the following reasons:

 (i)Planning Leads to Rigidity In an organisation a well-defined plan is drawn up with specific goals to be achieved, with in a specific time frame. These plans then decide how the work will progress in the future and managers may not be in a position to change it. This creates a problem as flexibility is very important. Always adhering to the plan may not give us the desired results always.

(ii)Planning May not Work in a Dynamic Environment The business environment is dynamic, nothing is constant. The business environment is a totality of external forces, where in some changes or the other keep on taking place. Plans decide in advance what has to be done in future. Planning cannot foresee everything and thus there may be obstacles to effective planning.

(iii) Planning Reduces Creativity Planning is generally done by the top management. Usually the rest of the members just implements these plans. As a consequence, middle management and other decisions makers are neither allowed to deviate from plans nor are they permitted to act on their own, thus planning in a way reduces creativity since people tend to think along the same lines as others, there is nothing new or innovative.

(iv) Planning Involves Huge Cost Planning involves huge cost in their formulation. These may be in terms of time and money. The costs incurred sometimes may not justify the benefits derived from the plans.

(v) Planning is a Time Consuming Process Sometimes plans to be drawn take up so much of time that there is not much time left for their implementation and the objectives to be achieved.

(iv) Planning does not Guarantee Success Any plans needs to be translated into action or it becomes meaningless. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again.

8.     What are the main features to be considered by the management while planning?

 The main features to be considered by the management while planning are

1) It Focuses on Achieving Objectives Planning is purposeful. Planning has no meaning unless it contributes to the achievement of predetermined organisational goals. It is the Primary Function Planning lays down the base for other functions of management. All other managerial functions are performed within the framework of the plans drawn. Thus, planning precedes other function.

2) Planning is Pervasive Planning is required at all levels of management as well as in all departments of the organisations. The top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-to-day operational planning is done by supervisors.

3)Planning is Continuous Plans are prepared for a specific period of time, may be for a month, a quarter or a year. At the end of that period, there is need for a new plan to be drawn on the basis of new requirements and future conditions. Hence, planning is a continuous process.

4) Planning is Futuristic The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future, analysing it and predicting it.

5) Planning Involves Decision Making Planning essentially involves choice from among various alternatives and activities. If there is only one possible goal then there is no need for planning. The need only arises when alternatives are available. Planning thus, involves thorough examination and evaluation of each alternative and choosing the most appropriate one.

6)Planning is a Mental Exercise Planning is basically an intellectual activity of thinking rather than doing, because planning determines the action to be taken. Planning requires logical and systematic thinking rather than guesswork or wishful thinking.