Chapter 4 planning business studies

 Chapter 4

Planning 

 

It refers to taking beforehand under this it is decided:- what to be done how to be done when it is to be done and by whom it is to be done

Features

• Planning focuses on achieving objectives
• Planning is a primary function of management
• Planning is pervasive
• Planning is continuous
• Planning is futuristic
• Planning involves decision making
• Planning is mental exercise

Importance

• Planning provide direction
• Planning reduce the risk of uncertainty
• Planeteves overlapping and wasteful activity
• Planning promote innovative ideas
• Planning facilitate decision making
• Planning stablish standard for controlling

Limitations

• Planner create rigidity
• Planning does not work in dynamic environment
• Planning reduce s creativity
• Planning involves huge costs
• Planning is a time-consuming process
• Planning does not guarantee success

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Planning process

1. Setting objective:-set up the aim of organisation
2. Developing premises:-it refers to make certain assumption about the future
3. Identify the alternative force of action:-to help in expanding organisation
4. Evaluating alternative course:-analysis course of actions and selecting the best for organisation
5. Selecting an alternative:-maximum positive and less negative and resources it is to be selected
6. Implementing the plan:-it is defined as to who will do a particular job at a what time
7. Follow up action:-regular check the plan every point on an organisation

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Types of plan

Planning is a process and plan is its outcome

1) standing all repeatedly use plan

• Used again and again
• There are develop for activity which occur regularly
• They developed once and used over and over again

Includes:- 

• Objective
• Strategies
• Policies
• Procedure
• Methods
• Rules

2) single used special plan

• Used only once
• Developed for one time event
• Scott Van project over

Includes:- budget and programme

Neither standing no single use plans

Objective

• Set by 2 level
• Define what is to be done
• Guide for overall

3.Strategy

• Blueprint of business
• Influenced by business environment
• Direct future decision making
• Example choice of advertisement and channel of distribution etc.

4.Policy

• Based on objective
• Organisation way of handle problem

5.Procedure on process

• Sequence to carry on activity
• Chronological order
• For insiders only

6.Method

• Standardized way of doing work
• Selection of right method save time money and increase efficiency

7.Rules

• Code of conduct of organisation
• What to do what not to do
• Compulsive in nature

Single use plan

8.Budget

• Statement of expressed in numerical term
• Prepared by manager at all levels
• Controlling device

9.Programme

• Detailed state must about a project
• Combination of a project objective policy procedure rules
• Ensure systematic working

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