Planning Class-12 Notes

PLANNING

 

CONTENTS:-

• Introduction
• Meaning
• Definition
• Features
• Importance
• Limitations
• Process
• Types of Plans

Introduction:-

Planning is bridge between starting and ending.

Setting up targets and objective for a fixed time period & formulation an action plan to achieve them efficiently and effectively.

Definition:-

"Planning is an intellectual process, conscious determination of course of action, the basing of decision on purpose, facts & considered estimates".

- Koontz & O Donnell

Features:-

• Focus on achieving goals
• Primary function
• Pervasive function
• Continuous process
• Involves decision making

1. 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.
2. Primary function- planning is 1st and important function of management. Planning lays down the base for the other function of management
3. .Planning precedes other function.Thus, planning is referred as primary function of management.It provides the basis of all other function.
4. 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.

                   Middle Level- for departmental planning.

                   Lower Level- for day to day operational planning.

4. Continuous process-Plans are prepared for specific period of time.Hence, it is continuous process.

5. Future oriented process- It involves looking ahead & preparing          for future. Purpose of planning is to meet future events.It involves      peeping into future.

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.

   2.  Lessens business-related dangers: There are numerous dangers implied in any advanced business. Arranging assists with determining these business-related dangers. It additionally assists with playing it safe to keep away from these dangers and plan for future vulnerabilities ahead of time. Subsequently, it lessens business chances.

  3.  Works with legitimate coordination: Often, the plans of all branches of an association are very much planned with one another. Essentially, the present moment, medium-term and long haul plans of an association are additionally planned with one another. Such legitimate coordination is conceivable simply because of proficient arranging.

 4. Helps in Organizing: Organizing intends to unite every accessible asset, for example 6 Ms. Getting sorted out is beyond the realm of imagination without arranging. It is thus, since, arranging reveals to us the quantity of assets required and when are they required. It implies that arranging helps in getting sorted out in an effective way.

  5. Provides right guidance: Direction intends to give legitimate data, precise guidelines and valuable direction to the subordinates. It is incomprehensible without arranging. It is on the grounds that arranging guides us, how to do it and when to do it. In this manner, arranging assists with provide the right guidance.

  6. Keeps great control: With control, the real presentation of a worker is contrasted and the plans, and deviations (assuming any) are discovered and adjusted. It is difficult to accomplish such control without the right arranging. In this manner, arranging becomes important to keep great control.

  7.  Assists with accomplishing goals: Every association has certain destinations or targets. It continues to endeavor to satisfy these objectives. Arranging assists an association with accomplishing these points, yet no sweat and instantaneous. Arranging additionally assists an association with trying not to do some irregular ( done by some coincidence) exercises.

  8. Propels faculty: A decent arrangement gives different monetary and non-monetary motivators to the two administrators and workers. These impetuses propel them to try sincerely and accomplish the destinations of the association. Hence, arranging through different impetuses assists with rousing the staff of an association.

    9. Empowers inventiveness and development: Planning assists administrators with communicating their innovativeness and advancement. It carries fulfillment to the administrators and in the end a triumph to the association.

 10.Helps in dynamic: An administrator makes various arrangements. Then, at that point the director chooses or picks the best of every accessible system. Making a determination or picking something intends to take a choice. Along these lines, dynamic is worked with by arranging.

 In this way, planning is essential for viable and productive working of each association regardless of its size, type and goals.

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.

2. Developing premises: This is the second step in planning. Premises include actual forecast data, policies and plans of the enterprise. Planning involves looking into the future which necessitates the enterprise to know, how future conditions will affect its activities. Thus, forecasting is an important step in planning. There are two types of forecasting namely,

• Prediction of general economic conditions.

• Prediction of market conditions for a specific product or service dealt with by the enterprises.

3.Listing various alternatives: Listing various alternative  is the third step in the planning process. The planner should study all the alternatives, consider the strong and weak points of them and finally select the most promising ones.

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.

5. Selecting an alternative: After having evaluated the different alternatives, the most suitable alternative is selected. With this, the plan can be considered to have been adopted. It is exactly the point at which decisions are made. Sometimes, in the best interests of the enterprise, several alternative courses can be adopted.

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.

Standing plan:

• 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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