BUSINESS STUDIES

CHAPTER – 4

PLANNING

J AISWARYA BA(HINDI)., B.COM(AF).,MBA(Finance)

AGENDA

 Meaning
 Importance

 Features

 Limitations

 Planning Process

 Types of Plans

 Achievements
MEANING
 Planning is deciding in advance what to do. It is
one of the basic managerial function.
 Planning therefore involves setting objectives
and developing an appropriate course of action
to achieve these objectives.
IMPORTANCE
 Planning Provides Direction
 Reduces Risk of uncertainty

 Reduces overlapping and wasteful activities

 Promoted innovation ideas

 Facilitates decision making

 Establishes standards for controlling

FEATURES

 Planning focuses only in achieving objectives

 It is the primary function of management

 Planning is the pervasive, continuous, futuristic

 It involves in decision making

 It is an mental exercise
LIMITATIONS
 Planning leads to Rigidity
 Reduces Creativity

 Involves huge cost

 It is a time consuming process

 Planning does not work in a dynamic environment and does not

have guarantee success
PLANNING PROCESS
 Setting Objectives
 Developing Premises

 Identifying alternatives courses of action

 Evaluating alternative courses

 Selecting an alternative

 Implement the plan

 Follow up action
TYPES OF PLANS
 Single use plan
It is developed for one time event or for a project.
It will not repeat in future.
 Standing Plan
It is used for activities that occurs regularly over a
period of time. It is developed once but modified from time to time.
- Policies
- Plan
- Procedure
- Methods
 Strategic Plan
CLASSIFICATION FOR ACHIEVEMENT
 Objectives
 Strategy

 Policy

 Procedure

 Method

 Program

 Budget
 Objectives
The desired future position that the management
would like to reach
 Strategy

It provides the broad contours of an organization

business. It will also refer to future decision defining the
organizations direction and scope in the long run
 Policy

General statement that guide towards a particular

direction
 Procedure

Routine steps on how to carry out activities.

 Method
Ways and manner in which a task has to be
performed considering the objectives.
 Program

A detailed statement 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
 Budget

Statement of expected results in numerical terms.

It is a plan which quantifies future facts and figures.