Professional Documents
Culture Documents
2023-2024
Class:12 Worksheet Number: 12/BST/CH4/01
Section A
1 mark questions:
1. Define Planning.
Planning can be defined as thinking in advance what is to be done, when it is do be done, how
it is to be done and by whom it is to be done.
2. Explain the meaning of ‘Budget’.
Budget is a statement of expected results expressed in numerical terms.
3. Give the meaning of ‘objective’ as a type of plan?
Objectives are very basic to the organisation and they are defined as ends which the
management seeks to achieve by its operations. Therefore, an objective simply stated is what
you would like to achieve, i.e., the end result of activities.
4. Define planning premises.
Planning in concerned with the future which is uncertain and every planner is using conjecture
about what might happen in future. Therefore the manager is required to make certain
assumptions about the future. These assumptions are called Premises.
5. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy
is to sell only for cash. In 2015, for the first time company’s number one position in the
industry has been threatened because other companies started selling rice on credit also.
But the managers of Super Fine Rice Ltd. continued to rely on it’s previously tried and
tested successful plans which did’t work because the environment is not static. This led
to decline in sales of Super Fine Rice Ltd. The above situation is indicating two
limitations of planning which led to decline in it sales. Identify these limitations.
3. Planning is pervasive: Planning serves as the stepping stone for all other functions of
an organisation. That is, planning precedes all other functions such as organising,
directing, staffing and controlling. This is because plans states the objectives and all
other functions are in accordance with the said objectives. Once the plans are
determined, the role of other interrelated functions comes into place. Thus, planning
sets the basis for other functions of an organisation.
(i) Planning provides directions: Planning ensures that the goals or objectives are clearly
stated so that they act as a guide for deciding what action should be taken and in which
direction.
(ii) Planning reduces the risks of uncertainty: Planning is an activity which enables a
manager to look ahead and anticipate changes. Changes or events cannot be eliminated but
they can be anticipated and managerial responses to them can be developed.
(iii) Planning reduces overlapping and wasteful activities: Planning serves as the basis of
coordinating the activities and efforts of different divisions, departments and individuals.
Useless and redundant activities are minimized or eliminated.
(iv) Planning promotes innovative ideas: Since, planning is the first function of
management, new ideas can take the shape of concrete plans.
(v) Planning facilitates decision making: Planning involves setting targets and predicting
future conditions, thus helping in taking rational decisions.
(vi) Planning establishes standards for controlling: Planning provides the goals or
standards against which actual performance is measured. The nature of corrective action
required depends upon the extent of deviations from the standard. Therefore, planning
provides the basis of control.
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Answer key
2023-2024
Class:12 Worksheet Number: 12/BST/CH4/01
Planning is pervasive.
Planning is required at all levels of management as well as in all departments of organization.
The scope of planning differs at different levels and among different departments. For
example Top management undertakes planning for the organization as a whole. Middle
management does the departmental planning at the lowest level. Day-to-day operational
planning is done by supervisors.
Planning is continuous
Plans are prepared for a specific period. 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.
Planning is futuristic
Planning essentially involves looking ahead and preparing for the future. It implies peeping
into the future analysis it and predicting it. A plan is therefore regarded as a forward looking
function based on forecasting.
Planning involves decision making
Planning essentially involves choices from among various alternatives and activities. The need
for planning arises only when alternatives are available. In actual practice planning pre
supposes the existence of alternatives.
Section B
1 mark questions:
11. Which type of plan has the least flexibility and why?
Rules are specific statements that inform what is to be done. They do not allow for any
flexibility or discretion because they reflect a managerial decision that a certain action must or
must not be taken.
12. Give one difference between policy and procedure
Policy: Policies are general statements that guide thinking or channelize energies towards a
particular direction.
Procedure: Procedures are routine steps on how to carry out activities
13. Why it is said that planning is pre-requisite for controlling
Planning provides the goals or standards against which actual performance is measured. If
there were no goals and standards then finding deviations which are a part of controlling
would not be possible.
14. State why planning is called a pervasive function in management.
Planning is required at all levels of management as well as in all departments of the
organisation.
15. Planning is the secondary function of management’. Do you agree?
No, planning is the primary function of management .All other managerial functions are
performed within the framework of the plans drawn. Thus planning precedes all other
functions. This is also referred to as primacy of planning.
16. ‘It is a comprehensive plan for accomplishing an organization’s objectives’. Mention it.
Strategy
17. ‘Policies are guidelines to managerial action and decisions in the implementation of
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Class:12 Worksheet Number: 12/BST/CH4/01
3 marks questions:
20. ‘Planning is doing the work for achievement of goals.’ Do you agree? Give reasons in
support of your answer.
Yes, Planning is deciding in advance what to do and how to do. It is one of the basic
managerial function. Organizations are set up with a general purpose in view. Specific goals
are set out in plans along with the activities to be undertaken to achieve goals. Planning is
purposeful. Planning has no meaning unless it contributes in achieving the targeted goals of a
company.
21. “To see whether plans are being implemented and activities are being performed
according to schedule”, is a step of planning process. Identify the step.
To see whether plans are being implemented and activities are preformed according to
schedule is also a part of planning process.
Monitoring the plans is equally important to ensure that the objectives are achieved. This step
is the last in the process of planning known as the Follow-up Action.
22. Define ‘planning’. Explain the first two steps in the process of planning.
Ans. Planning can be defined as thinking in advance what is to be done, when it is do be done,
how it is to be done and by whom it is to be done.
The first two steps in the process of planning:
1. Setting objectives
how the various departments contribute towards the attainment of the broad
framework of the organization’s philosophy is the plan to be drawn up.
The objectives have to percolate down to each unit and employees at all levels, which
gives them the necessary direction to work.
2.Developing premises:
planning is concerned with the future which is uncertain and every planner is using
conjecture about what might happen in future.
Therefore, the manager is required to make certain assumptions about the future.
These assumptions are called premises.
Forecasting is important in developing premises as it is a technique of gathering
information.
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Class:12 Worksheet Number: 12/BST/CH4/01
4 marks questions:
Flexibility They do not allow any They are flexible as method may
flexibility or discretion. vary from task to task.
Objective It ensures discipline It ensures efficiency of operations
Nature It is regarded as official and It is regarded as rational and
authoritative logical.
25. Explain ‘objective’ and ‘policy’ as types of plan using suitable examples.
Objectives are usually set by the top management and serve as a guide for the overall
planning. Each unit then formulates their own objectives keeping in viewing the overall
organizational goals. For example: an organization may have an objective of increasing sales
by 10% or earning a reasonable rate of return on investment, earn a 20% profit from business.
Policies are general forms of standing plans that specifies the organisation’s response to a
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Class:12 Worksheet Number: 12/BST/CH4/01
Rules are specific statements that inform what is to be done. They do not allow for any
flexibility or discretion. (Usually the simplest type of plans because there is no compromise or
change unless a policy decision is taken.
27. Explain ‘procedure’ and ‘programme’ as types of plan.
Proceduresas a form of standing plans, describe the steps to be followed in particular
circumstances. For example: procedure for reporting progress in production.
Procedures are routine steps on how to carry out activities. They detail the exact manner in
which any work is to be performed. They are specified in a chronological order. Procedures
are specified steps to be followed in particular circumstances. They are generally meant for
insiders to follow. Policies and procedures are interlinked with each other. Procedures are
steps to be carried out within a broad policy framework
Programmesare detailed statements about a project which outlines the objectives, policies,
procedures, rules, tasks, human and physical resources required and the budget to implement
any course of action. Programmes will include the entire gamut of activities as well as the
organisation’s policy and how it will contribute to the overall business plan. The minutest
details are worked out i.e., procedures, rules, budgets, within the broad policy framework.
28. Explain “policy and procedure” as types of plan.
Policy: Policies are general statements that guide thinking or channelize energies towards a
particular direction. Policies provide a basis for interpreting strategy which is usually stated in
general terms. They are guides to managerial action and decisions in the implementation of
strategy. As such, a policy is the general response to a particular problem or situation. There
are policies for all levels and departments in the organisation ranging from major company
policies to minor policies. Major company policies are for all to know i.e., customers, clients,
competitors etc., whereas minor polices are applicable to insiders and contain minute details
of information vital to the employees of an organisation. But there has to be some basis for
divulging information to others.
Procedure: Procedures are routine steps on how to carry out activities. They detail the exact
manner in which any work is to be performed. They are specified in a chronological order.
Procedures are specified steps to be followed in particular circumstances. They are generally
meant for insiders to follow. Policies and procedures are interlinked with each other.
Procedures are steps to be carried out within a broad policy framework
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Answer key
2023-2024
Class:12 Worksheet Number: 12/BST/CH4/01
A strategy provides the broad contours of an organisation’s business. It will also refer to
future decisions defining the organisations direction and scope in the long run. Thus, we can
say a strategy is a comprehensive plan for accomplishing an organisation
objectives.Connected with creativity and innovation. That is why planning is necessary for
management
6 marks questions:
30. Explain the process involved in planning?
Ans1. Setting objectives
The first and the foremost steps setting objectives. Every organization must have certain
objectives. Objectives maybe set for the entire organization and each department or unit
within the organization. Objectives or goals specify what the organization wants to achieve. It
could mean an increase in the sales by 20% which could be objective of the entire
organization .How all departments would contribute to the organizational goals is the plan that
is to be drawn up. Objectives should be stated clearly for all departments, units and
employees. They give directions to all departments. Departments then need to set up their
objectives within the broad framework of the organization’s philosophy.
Developing premises
Planning is concerned with the future which is uncertain and every planner is using conjecture
about what might happen in future. Therefore the manager is required to make certain
assumptions about the future. These assumptions are called Premises. Assumptions are the
base material upon which plans are to be drawn. The base material may be in the form of
forecasts, existing plans or any past information about policies. The premises or assumptions
must be the same for all and there should be familiar with and use the same assumptions.
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Class:12 Worksheet Number: 12/BST/CH4/01
earnings, earnings per share, interest, taxes, dividends taken. Accurate forecasts inn conditions
of certainty / uncertainty then become vital assumptions for these proposals. Alternatives are
evaluated in the light of their feasibility and consequences.
Selecting an alternative.
Thus is the real point of decision making .The best plan has to be adopted and implementing.
The ideal plan of course would be the most feasible, profitable and with least negative
consequences. Most plans may not always be subjected to a mathematical analysis. In such
cases, subjectivity and the manager’s experience, judgment and at times intuition play an
important part in selecting the most viable alternative. Sometimes a combination of plans may
be selected instead of one best course. The manager will have to apply permutations and best
combinations and select the best possible course of action.
Follow up action
To see whether plans are being implemented and activities are performed according to
schedule is also part of the planning process. Monitoring the plans is equally important to
ensure that objectives are achieved.
6 Section C
1 1 mark questions:
31. Name the type of plan which is time bound and linked with measurable outcome.
The type of plan which is time bound and linked with measurable outcome is Objective.
32. Name the type of plan which provides the broad contours of an organizational business.
A) The type of plan which provides the broad contours of an organizational business is
B) Strategy
33. Name the type of plan which tells what is to be done and what is not to be done
The type of plan which tells what is to be done and what is not to be done is Rule.
34. Name the type of plan which defines the parameters in which a manager may function.
)T Policy
35. ‘This function of management means deciding in advance what to do and how to do’.
State the function involved.
The function involved is Planning
36. ‘Planning establishes standards for controlling’. In other words what does this means?
Planning provides the goals or standards against which actual performance is measured. By
comparing actual performance with some standard, managers can know whether they have
actually been able to attain the goals.
37. Which is the most crucial step in the planning process?
Selecting an alternative is the most crucial step in the planning process. This is the real point
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c. Planning is pervasive
d. Planning is futuristic
50. What to do and how to do is concerned with______
a. Organizing b. Planning c. Directing d. Controlling
51. Which of the following is not true about planning?
a. Planning is a mental exercise
b. Planning guarantees success
c. Planning is unwanted expense
d. None of these
52. Hiring only University-trained engineers is an example of ____________
a. Procedure b. Policy c. None of these d. Strategy
53. Choice of advertising media is concerned with___________
a. Procedure b. Strategy c. Policy d. None of these
54. Selection of employees is _____________ of the business
a. Strategy b. Procedure c. Rule d. None of these
55. A fine or penalty can be charged only on the violation of __________
a. Rules b. Strategy c. Method d. None of these
56. Training, lectures and seminars are ____________
a. Method b. Strategy c. Procedure d. Rules
57. Development of a new product is a ___________
a. Strategy b. Programme c. Procedure d. Policy
58. Estimated cash inflows and cash outflows are _________.
a. Programme b. Rules c. Procedure d. Budget
59. Increasing sale by 15% is _______________
a. Method b. Procedure c. Objective d. Rule
60. Which of the following is a limitation of planning?
a. Planning promotes innovative ideas
b. Planning does not guarantee success
c. Planning facilitates decision making
d. Planning provides directions
61. The first step of planning is _____________
a. Follow up action
b. Setting objectives
c. Selecting an alternative
d. Implementing the plan
62. What is the last step in planning process?
a. Setting objectives
b. Follow up action
c. Developing premises
d. None of these
63. Planning seeks to bridge the gap between ______
a. Past and Future position
b. Present and Future position
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Class:12 Worksheet Number: 12/BST/CH4/01
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elements, which are designed to get a systematic working in the , organization. And lays
down what, how , who and when of accomplishing a specific job.
• Programme involves planning for future events and establishing a sequence of
required actions.
• It gives a step-by-step approach to guide the action necessary to reach a ore-
determined goal.
• Programme can be of different types, like production programme, training
programme, sales promotion programme, etc.
• Example: A company may have programme with respect to 'Construction new
Factory premises'.
• Training programme
• Sales promotion programme
• Production programme.
77. Name the aspect which must be considered while forming business strategies.
A strategy provides the broad contours of an organisation’s business. It is a comprehensive
plan for accomplishing an organisation objectives. This comprehensive plan will include three
dimensions.
(i) Determining long term objectives,
(ii) Adopting a particular course of action, and
(iii) Allocating resources necessary to achieve the objective.
Whenever a strategy is formulated, the business environment needs to be taken into
consideration. The changes in the economic, political, social, legal and technological
environment will affect an organisation’s strategy. Strategies usually take the course of
forming the organisation’s identity in the business environment. Major strategic decisions
will include decisions like whether the organisation will continue to be in the same line of
business, or combine new lines of activity with the existing business or seek to acquire a
dominant position in the same market.
78. Which plan has a limited scope, procedure or method?
Method
79. Planning requires logical & systematic thinking rather than guess work. Which feature
of planning is highlighted here? Explain?
The feature highlighted here is – ‘planning is a mental exercise’
Planning requires application of the mind involving foresight, intelligent imagination and
sound judgement. It is basically an intellectual activity of thinking rather than doing, because
planning determines the action to be taken. However, planning requires logical and systematic
thinking rather than guess work or wishful thinking. Planning must be orderly and based on
the analysis of facts and forecasts
80. ‘Planning is looking ahead’. Explain
Planning essentially involves looking ahead and preparing for the future. 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. Planning is, therefore, regarded
as a forward looking function based on forecasting. Through forecasting, future events and
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conditions are anticipated and plans are drawn accordingly. Thus, for example, sales
forecasting is the basis on which a business firm prepares its annual plan for production and
sales.
81. Give an example each of any three limitations of planning which are beyond the control
of an organization.
Planning cannot function in a dynamic environment-organisation has to constantly adapt itself
to environment changes such as political instability, rise in competitors etc
Unforeseeable events hinder the process of planning- natural calamities
Planning does not guarantee success. Even a previously successful plan may not be successful
again.
82. Naman, working as a supervisor in Rainbow Ltd. Is given a target of producing 100
shirts a day. Due to his habit of doing things differently, an idea struck him which would
not only give job opportunities to the disabled people but also help in reducing per unit
cost and increasing the production per day. However, Harisingh, the production
Manager, does not give any importance to Namans creativity and hence does not allow
Naman to deviate from the pre-decided methods and techniques.
a. By not allowing Naman from deviating from the pre-decided methods and
techniques, Mr. Hari Singh gave rise to one of the limitations of management
function. Identify the management function and the limitation.
a. Ans. Management function: Planning
The limitation of planning function of management described in the above paragraph
is that ‘Planning reduces creativity’
83. Mr. Ram , Director of ABC Ltd, does the entire planning for the organization.He wants
that the lower and the middle level managers should only implement the plans laid down
by him and does not allow them to deviate from set plans.The lower management only
carries out the order. There is nothing new or innovative in the organization.
a. Name the limitation of planning referred to above.
b. State any other two limitations of planning.
Ans.
a. Planning reduces creativity
b. Planning involves huge cost.
Planning is a time consuming process.
84. The business environment is dynamic, nothing is constant. The environment consists of a
number of dimensions, economic,political, physical,legal and social dimensions.
a. In the above paragraphs, one of the limitation of planning has been described.
Identify it.
b. State any two more limitations of planning.
c. Name the values that can be emphasized by removing the above limitation of
planning.
Ans.
a. Planning may not work in dynamic environment.
b. Planning leads to rigidity.
Planning involves huge cost.
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Class:12 Worksheet Number: 12/BST/CH4/01
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employees of an organisation. But there has to be some basis for divulging information
to others.
4 marks questions:
89. Rajeev, the owner of Pathways constructions decided to start a campaign to create
awareness among people for developing clean surroundings in their area. He formed a
team of 10 members to list the different ways for cleaning the surroundings. One
suggested to take the help of local residents, another suggested that they may involve
school going children in their venture. One more suggestion was to take the help of
unemployed youth. On evaluation of different ways, it was decided to take the help of
local residents. To achieve the desired goal various activities were identified like
a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.;
b) Collection of garbage;
c) Disposal of garbage, etc.
After identification of different activities the work was allocated to different members.
i. Identify the concepts of management involved in the above situation and quote the
lines which help in their identification.
ii. Also identify the values which the company wants to communicate to the society
Ans.(i) Concepts involved – Planning and Organising
Lines for planning–
‘one suggested…….unemployed youth’
‘on evaluation……. local residents’
‘campaign to create awareness……surroundings’
Lines for organizing –
‘To achieve………disposal of garbage etc.’
‘after identification of different activities….. different members’
90. Which type of plan is referred through in each of the following statements:
a. They are defined as ends which the management seeks to achieve by its
operations.
b. They are general statements that guide thinking or channelize energies towards a
particular direction.
c. They provide details in the exact manner in which any work is to be performed.
d. They provide the prescribed ways or manner in which a task has to be performed
considering the objective.
Ans.
a. Objectives
b. Policies
c. Procedures
d. methods
6 marks questions:
91. ‘No enterprise can achieve its objectives without systematic planning’. Do you agree with
this statement? Give any six reasons in support of you answer.
Yes, It is true that no enterprise can achieve its objectives without systematic planning.
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objectives and the targets and formulated action plan to achieve the same.
One of his objectives was to earn 50% profit on the amount invested in the first year. It
was decided that raw materials like flour, sugar, salt etc. will be purchased on two
months credit. He also decided to follow the steps required for marketing the products
through his own outlets. He appointed Harsh as a Production Manager who decided the
exact manner in which the production activities are to carried out. Harsh also prepared
a statement showing the requirement of workers in the factory throughout the year.
Mayank informed Harsh about his sales target for different products, area wise for thee
forth coming quarter. While working on the production table a penalty of Rs. 150 per
day was announced for not wearing the helmet, gloves and apron by the workers.
Quoting lines from the above para identify and explain the different types of plans
discussed.
Ans.
Objectives:‘One of his objectives was to earn 50% profit on the amount invested in the first
year.’
Objectives therefore can be said to be the desired future position that the management would
like to reach.
Policy: ‘Raw materials like flour, sugar, salt etc. will be purchased on two months credit.’
Policies are general statements that guide thinking or channelise energies towards a particular
direction.
Procedure: ‘Decided to follow the steps required for marketing the products through his own
outlets.’
Procedures are routine steps on how to carry out activities.
Rule: ‘A penalty of Rs. 150 per day was announced for not wearing the helmet, gloves and
apron by the workers.’
Rules are specific statements that tell what is to be done.
Method: ‘The exact manner in which the production activities are to carried out.’
Methods provide the prescribed ways or manner in which a task has to be performed
considering the objective.
Budget: ‘Harsh also prepared a statement showing the requirement of workers in the factory
throughout the year.’
A budget is a statement of expected results expressed in numerical terms. It is a plan which
quantifies future facts and figures.
94. Suhasini a home science graduate from a reputed college has recently done a cookery
course. She wished to start her own venture with a goal to provide ‘health food’ at
reasonable price. She discussed her idea with her teacher (mentor) who encouraged her.
After analyzing various options for starting her business venture, they shortlisted the
option to sell readymade and ‘ready to make’ vegetable shakes and sattu milk shakes.
Then, they both weighed the pros and cons of both the shortlisted options.
a) Name the function of management being discussed above and give any one of its
characteristics.
b) Also briefly discuss any three limitations of the function discussed in the case.
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Ans.(a) Planning.
Characteristics of planning (any one)
(i) Planning focuses on achieving objectives.
(ii) Planning is a primary function of management
(iii) Planning is pervasive
(iv) Planning is continuous
(v) Planning is futuristic
(vi) Planning involves decision making
(vii) Planning is a mental exercise
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