Planning Notes Class 12 Business Studies

Planning is one of the shortest chapters in a business studies book, but still, it has concepts that are hard to learn like the planning process. Here are the notes that provide tricks to learn planning concepts easily.

Planning

Planning can be defined as thinking in advance about 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 that planning bridges the gap between where we are and where we want to reach.

Features of Planning

1. Planning focuses on achieving objectives: Planning starts with the determination of objectives. Planning is useless without objectives.
2. Planning is the primary function of management: It lays down the base for other functions of management.
3. Planning is pervasive: Planning is required at all levels as well as all departments of an organization.
4. Planning is continuous: Planning is a never-ending process.
5. Planning is futuristic: Planning always means looking ahead. It is never done in the past.
6. Planning involves decision-making: Planning involves choosing from various alternatives and activities.
7. Planning is a mental exercise: Planning requires application of mind which involves intelligent imagination and sound judgement.

Planning Process

It is the most important concept in Planning. To learn the planning process you can take the help of a mnemonic: “MR. S DIES IF HE TAKES POISON”.

S- Setting Objectives
D- Developing Premises
I- Identifying alternative courses of action
E- Evaluating alternative courses of action
S- Selecting an alternative
I- Implementing the plan
F- Follow up action

1) Setting Objectives

Objectives should be achievable, they should not be too high or too low. Every organization has certain objectives which specify what the organization wants to achieve.

2) Developing Premises

Premises are the assumptions that we make today about the future. Premises are the base on which plans are made and may be in the form of forecasts, existing plans, or any past information about policies.

3) Identifying alternative courses of action

Once the objectives are set, and assumptions are made, the next step would be to act upon them. The managers make a list of alternatives through which an organization can achieve its objectives.

4) Evaluating alternative courses of action

After making the list of various alternatives, the next step is to weigh the pros and cons of each alternative.

5) Selecting an alternative

This is the real point of decision-making. A plan has to be adopted and implanted which is the most feasible, profitable, and has the least negative consequences.

6) Implementing the plan

This step is concerned with putting the plan into action i.e. doing what is required. This is the step where other managerial functions come into existence.

7) Follow up action

It is equally important to see whether the plans are being implemented and activities are performed according to the schedule. It helps to verify whether the predictions are holding true or not.

Importance of Planning

• Planning provides direction: Planning is concerned with deciding in advance how work is to be done.
• Planning reduces the risk of uncertainty: Planning is an activity that enables a manager to look ahead and anticipate changes.
• Planning reduces overlapping and wasteful activities: Planning serves as the basis for coordinating activities and efforts of different divisions, departments, and individuals.
• Planning promotes innovative ideas: Planning makes the manager innovative and creative as planning requires a high-thinking and intellectual process.
• Planning facilitates decision-making: Planning helps the manager to look at the future and make a choice among various alternative courses of action.
• Planning establishes standards for controlling: Planning involves setting goals, so it provides standards against which actual performance is measured.

Limitations of Planning

• Planning is a time-consuming process: It takes a long time to evaluate the alternatives and select the best one.
• Planning involves huge costs: Planning is expensive as it involves many scientific calculations, research, boardroom meetings, etc.
• Planning may not work in a dynamic environment: It becomes very difficult to forecast future changes, which leads to the failure of plans.
• Planning leads to rigidity: Once plans are made to decide the future course of action, the manager may not be in a position to change them.
• Planning reduces creativity: Planning is an activity that is done by the top management. Usually, the rest of the employees just implement which reduces their creativity.
• Planning does not guarantee success: It is not always true that just because a plan has worked in the past, it will work again in the future.

Marketing Management Class 12 Notes

Types of Plans

There are two types of plans. All other types come under these two types of plans:

1) Single Use Plans

Single-use plans are one-time-use plans. These are designed to achieve a particular goal, which once achieved will not reoccur in the future.

2) Standing Plans

Standing plans are also known as repeat-use plans. These plans focus on situations that occur repeatedly and enhance efficiency in routine decision-making.

So, these are the planning notes class 12 business studies. If you have any doubts, you can ask them in the comments, I will try to resolve those doubts.

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