PLANNING

PART- 1
XII BUSINESS STUDIES
2022-2023
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Official Syllabus

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 Planning
All organisation whether it is the govt, a private or small businessman
requires planning.
 DEFINITION/ MEANING

Planning can be define as thinking in advance what is to be done, when it is to

be done, how it is to be done, and by whom it should be done.

In simple words we can say, planning bridges the gap between where we are
standing today and where we want to reach.

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 Features/ Nature/ Characteristics of Planning

Planning contributes to
01 04 Planning is Futuristic
objective

Planning is Primary
02 function
05 Planning is continuous

03 Planning is Pervasive

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 1 Features/ Nature/ Characteristics of Planning

Planning contributes to objective:- Planning starts with the determination

of objectives. We can’t think of planning in absence of objectives. After
setting up goal planning decides the methods, procedures and steps to
achieve the organisational objective.

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 2 Planning is Primary function/Base of other function
of Management:-

It is 1st function to be performed by every manager. No other function

to be performed without planning

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 3 Planning is Pervasive/ Every level of management:-

It is required at every levels of the management it is not a function restricted to

top level manager only but planning is done by manager at every level.
Formation of major plan and framing of overall policies is the task of top level
managers.

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 4 Planning is Futuristic/Forward looking:-
Planning always means looking ahead Planning is never done for the past. All the
manager try to make prediction & assumption for future on the basis of past
experiences of the manager.

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 5 Planning is continuous:-
Planning is a never ending or continuous process. Because after making plans also
one has to be in touch with the changes in environment & make further plan
accordingly.

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PLANNING
PART- 2
XII BUSINESS STUDIES
2022-2023
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 Importance of Planning

Planning establishes
Planning provides
01 03 standard for controlling
direction

Planning reduces the Planning provides

02 04 Innovative Idea
risk of uncertainties

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1. Planning provides direction :- It is
concerned with predetermined course of
action. It provides the directions to the
efforts of employees. Planning makes
clear what employees have to do, how to
do, etc. employees know this lead to unity
of direction if there was no planning,
employees would be working in different
directions and organisation would not be
able to achieve its desired goal.
2. Planning reduces the risk of
uncertainties:-
Organisation have to face many
uncertainties and unexpected situation
everyday. Planning helps the manager to
face the uncertainty because planners try
to see the future by some assumption
regarding future keeping in mind their
past experience and scanning of business
environments. The plans are made to
overcome such uncertainties e.g. PFDD
maintained on Debtor.
3. Planning provides Innovative Idea:-
Planning requires high thinking process.
So there is a great scope of finding better
ideas, method and procedures to perform
a particular job planning process forces
manager to think differently and assume
the future conditions so, it makes the
manager innovative and creative.
4.Planning establishes standard for
controlling:- Controlling means
comparison between planned and actual
output and if there is variation between
both then find out the reasons for such
deviations and taking measures to match
the actual output with the planned. But in
case there is no planned output then
controlling manager will have no base to
compare whether the actual output is
adequate or not. So planning is the base
for not only controlling planning is needed
to initiative every function and base for
comparison in controlling is given by
planning function only.
 Limitations of Planning

A M R I T
It may not
Time
Lack of work in it reduce It involve
consuming
Accuracy dynamic creativity huge cost
environment process

Does not
guarantee
success
1. Lack of Accuracy:- In planning we are
always thinking in advance and it is
concerned with future only and future
is uncertain in planning various
assumptions are made but these are
not 100% correct.
2. It may not work in dynamic
environment:- Business environment is
very dynamic as there are
continuously changes take place in
economic, political and legal
environment. It is very difficult to
forecast these future changes.
3. It reduce creativity:- with the
Planning the manager of the
organisation start working rigidly and
they become the blind followers of the
plan only. So manager do not think
initiative.
4. It involve huge cost:- Planning
process involves lot of cost because it
is an intellectual process. Companies
need to hire the professional experts to
carry on this process. Along with salary
of these expert the company has to
spend lot of time and money to collect
accurate facts and figures. So it is cost
consuming process.
5. It is a Time consuming process:-
Planning process is a time consuming
because it takes long time to evaluate
the alternative and select the best one.
Lot of time is needed in developing
planning premises. So because of this
the actions gets delayed.
6. Planning does not guarantee
success:- Some times managers have
false sense of security that plans have
worked. Successfully in past so these
will be working in future also. Planning
only provide a base for analysing
future. It is not a solution for future
course of action
 EXTERNAL LIMITATIONS OF PLANNING
1. Change in competitors policies
01 2. Change in taste and preferences
3. Change in govt/ economic policy
06 02 4. Change in technology
EXTERNAL
LIMITATIO
N
5. Natural calamity.

05 03 6. Change in Buying capacity of

consumer.
04
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Part 3
PLANNING PROCESS
(S DIES IF)

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1. Setting up of the objectives:- In Planning
functions managers begin with setting
up of objectives because all the policies,
procedures and methods ae framed for
achieving objectives only by keeping in
mind the goals of the company and the
resources of the company
2. Developing premises:- Premises refer to
making assumptions regarding future
premises are the base on which plans are
made. Many forecast are made to find out
the demand for a product change in
environment, govt, or competitor policy,
tax rate, etc,.
3. Identify various alternatives for
achieving the objectives:- After setting up
of objective the manager make a list of
alternatives through which the
organisation can achieve managers must More Offering more
advertisement discounts
know all the ways to reach the objectives.
So manager list out all the alternative.

Attracting new Introducing new

customers products
4. Evaluation of various alternatives:-
After making the list of various
alternatives along with the assumptions,
The manager starts evaluating each and
every alternative and note down the
positive and negative aspects of every
alternative manager makes a list of
positive aspects and negative aspect of
every alternative.
5. Select an alternative:- The best
alternative is to be selected which have
more positive aspect and less negative
aspects manager try to eliminate those
More Offering more
alternative which have more negative advertisement discounts
aspects. Some time instead of selecting
one alternative, a combination of different
alternative can also be selected managers
Attracting new Introducing new
make no. of small plan to support main customers products
plan. These are derived from the major
plan. Hence these are called DERIVATIVE
plans.
6. Implement the plan:- Plans are made on
the paper there is no use of these plans
unless and until these are put in action for
implement the plan. Managers start
communicating the plans to all the
employees very clearly because the
employees actually have to carry on the
activities according to specification of
plans after communicating manager start
allocating the resources according to
plans.
7. Follow-Up Action:- Planning is a
continuous process so that manager’s job
does not get over simply by putting the
plan into action. The manager monitor the
plan carefully while it is implemented
during following the plan, many changes
are made and many adjustment are made.
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PLANNING
PART- 3
XII BUSINESS STUDIES
2022-2023
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Plan is a document that outlines how goals are going to be met.

Types of plan

Single use plan Standing plan

 SINGLE USE PLAN
Single-use plans are developed for
unique situations or problems and
are usually replaced after one use.
Every time a New Plan is Prepared
for a New situation
e.g., Budget, Programme & Projects
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STANDING PALNS
A standing plan is a business plan
that is intended to be used many
times.
These are Recurring or Repeat use
plan
e.g., Policies, Procedures, Methods,
Rules, etc.
 TYPES OF PLAN
1. Objectives:-(i) These are the end result
of every activity,
(ii) Objective describes what is to be
done.
(iii) Objective are end point of planning.
(iv) These are framed by top level
management.
OBJECTIVE MUST BE SMART
Specific, Measurable, Achievable,
Relevant, Time-bound
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2. Strategy:- (i) A Strategy is a comprehensive
plan to achieve the organisational objectives.

(ii) These are made by top level.

(iii) Every time a new strategy is prepared to

solve different problems.

(iv) The dimensions of strategy are,

determining long term objectives, allocation of
resources for achieving the organisational goal.
The common decision in strategy are whether
to introduce a new product or not. If to
introduce then how, finding out customer,
making changes in existing product, etc.

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3. Methods:- Method are formalised way
of doing a routine job it is a common/
Systematic way it removes the doubt in
mind of employees make uniformity
manager decide in advance the common
way of doing a job it is predetermined

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4. Policies:- (i) Policies are organizations
own way of solving a particular problem.
(ii) Policies describe how the work is to be
done.
(iii) These are made by all level, Top,
Middle, Lower level.
(iv) Policies are derived from the objectives
of the company,
(v) It helps and encourage employee at
critical situation. e.g. A school may have
policy to give admission to students
securing 60% or more than 60% marks.
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5. Rules:- Rules are norms regarding
action and non-action of employees it is
a guid behaviour of employees. It
describes what is to be done and what
not base. These are rigid these are create
for maintaining discipline.

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 Procedure
6. Procedures:- Procedures are sequence
of steps to be followed by employees in
different situations. The Procedures can
be defined as the exact manner in which
an activity has to be accomplished
e.g. Procedure for admission in a
particular school.

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7. Programme:- Programme are the
combination of Goals, Policies,
Procedures and Rules. All these plan
together forma a programme. These are
made for systematic working in
organisation.

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8. Budget:- It is a statement of expected
result expressed in numerical terms it is
prepared by every level. e.g. cash budget,
capital budget, financial discipline.

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