Planning Class-12 Notes
PLANNING
CONTENTS:-
- Introduction
- Meaning
- Definition
- Features
- Importance
- Limitations
- Process
- Types of Plans
Introduction:-
Definition:-
- Focus on achieving goals
- Primary function
- Pervasive function
- Continuous process
- Involves decision making
- Focus on achieving goals- organisation are set up with general purpose hence planning is purposeful . Planning has no meaning unless it contributes to achievement of predetermined organisational goals.
- Primary function- planning is 1st and important function of management. Planning lays down the base for the other function of management
- .Planning precedes other function.Thus, planning is referred as primary function of management.It provides the basis of all other function.
- Pervasive function- planning is required at all levels as well as in all departments of organisation.It is not exclusive function of management nor of any particular department.Scope of planning defers at different levels & among different departments.
Example:- Top Level- undertakes planning as whole organisation.
6. Involves decision making- It essentially involves choice from various alternatives & activities.Thus, it involves through examination &evaluation of each alternative & choosing the appropriate one.
Importance:-
- Builds proficiency
- Lessens business
- Works with coordination
- Helps in organizing
- Provides right guidance
- Keeps great control
- Assist in achieving goals
- Propels faculty
- Empowers inventiveness and department
- Helps in dynamic
1. Builds proficiency: Planning makes ideal use of every accessible asset. It assists with diminishing the wastage of important assets and keeps away from their duplication. It plans to give the best yields at the least conceivable expense. It hence expands the general productivity.
Limitation:-
- Leads to rigidity
- Does not work in dynamic environment
- Reduces creativity
- Involves cost
- Time consuming
- Does not guarantee success
1.Leads to rigidity: The quality of flexibility is inherent in planning, meaning thereby that in case of need changes can be brought in, but it must be admitted that only small changes are possible. Big changes are neither possible nor in the interest of the organisation.
2.Does not work in dynamic environment:Planning is based on the anticipation of future happenings. Since future is uncertain and dynamic, therefore, the future anticipations are not always true. Therefore, to consider planning as the basis of success is like a leap in the dark.
Generally, a longer period of planning makes it less effective. Therefore, it can be said that planning does not work in dynamic environment.
3.Reduces creativity: Under planning all the activities connected with the attainment of objectives of the organisation are pre-determined. Consequently, everybody works as they have been directed to do and as it has been made clear in the plans.
Therefore, it checks their incisiveness. It means that they do not think about appropriate ways of discovering new alternatives. According to Terry, “Planning strangulates the initiative of the employees and compels them to work in an inflexible manner.”
4.Involves cost: Planning is a small work but its process is really big. Planning becomes meaningful only after traversing a long path. It takes a lot of time to cover this path.
During this entire period the managers remain busy in collecting a lot of information and analyzing it. In this way, when so many people remain busy in the same activity, the organisation is bound to face huge costs.
5.Time consuming: Planning is a blessing in facing a definite situation but because of its long process it cannot face sudden emergencies. Sudden emergencies can be in the form of some unforeseen problem or some opportunity of profits and there has been no planning for all these situations beforehand and which now requires immediate decision.
6. Does not guarantee success: Sometimes the managers think that planning solves all their problems. Such thinking makes them neglect their real work and the adverse effect of such an attitude has to be faced by the organisation.
In this way, planning offers the managers a false sense of security and makes them careless. Hence, we can say that mere planning does not ensure success; rather efforts have to be made for it.
Process:
- Setting up of objectives
- Developing premises
- Listing various alternatives
- Evaluating different alternatives
- Selecting an alternative
- Implementing the plan
- Follow up
1. Setting up of objectives: Setting up of objective is 1st step of planning. Plans are prepared with a view to achieve certain goals. Hence, establishing the objectives is an important step in the process of planning. Plans should reflect the enterprise’s objectives. Objectives should clearly define as to what is to be achieved by policies, procedures, rules, strategies, budgets and programmes. Plan must make sure that every activity undertaken contributes to the achievement of objectives.
- Prediction of general economic conditions.
- Prediction of market conditions for a specific product or service dealt with by the enterprises.
4.Evaluating different alternatives: Alternative selected should be evaluated in the light of premises and goals. Evaluation involves the study of performance of various actions. Various factors such as profitability, investment requirements, etc., of such alternatives should be weighed against each other. Each alternative should be closely studied to determine its suitability.
6. Implementing the plan: Implementing of plans is the final step in the process of planning. This involves putting the plans into action so as to achieve the business objectives Implementation of plans requires establishment of policies, procedures, standards, budgets, etc.
7. Follow up: This is the final step of planning process.After implementing the plan feedback is needed and new plan is to be drawn as per the requirements.
Types of plan:
Plan: A document which defines about how the goals are to be met.
Plan
Single Used Plan Standing Plan
Programme, budget Objectives, Rules
Policies,
Strategy etc.
Single used plan:
- Programme: It is combination of [Goals+Procedure+Rules]
- Budget: Related to financial matters . Expected results expressed in numerical terms.
- Objectives: The ends towards which all the activities are directed.They are long term plan.
- Strategy: The comprehensive plan to achieve the objective.Adopting a particular course of action.it is also referred as long term plan.
- Policies: General response of the organisation to a particular problem.
- Rules: Action or non actions
- Methods: Systematic way of doing routine & repeated job.
- Procedure: Exact manner in which the activity can be accomplished.
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