business studies - planning

1. PLANNING

2. Planning - Meaning
Deciding in advance
What is to be done
How is to be done
When is to be done
Who is to be done

3. PLANNING - DEFINITION
“Planning is deciding the best alternative among
others to perform different managerial
operation in order to achieve the predetermined
goal.”
- Henry fayol

4. FEATURES
 Goal oriented
 Primary function of management
 Pervasive
 Continues process
 Futuristic
 Involves decision making
 Mental exercise

5. GOAL ORIENTED
 Planning start with setting goal or objectives.
 The goal may be general
purpose goal or special
purpose goal.

6. PRIMARY FUNCTION OF MANAGEMENT
 Planning lays down base for other functions of
management.
 Planning referred to as the primary function of
management.

7. PERVASIVE
 Planning required at all levels of management as
well as in all department of an organisation
 Scope of planning is
differs at different levels
among different departments.

8. PLANNING IS CONTINUOUS
 Planning is prepared for a specific period, at the
end there is a need for a new plan to be drawn
based on requirements.
 Plan is framed, implemented
and is followed by another plan.

9. PLANNING IS FUTURISTIC
 Planning is forward looking.
 Planning meets future
events effectively to the
best advantage of an
organisation.

10. PLANNING INVOLVE DECISION MAKING
 Planning involves choice from among various
alternatives and activities.

11. PLANNING IS A MENTAL EXERCISE
 Planning involves intelligent imagination and
sound judgment.
 It require logical thinking
and systematic thinking
rather than guess work.

12. IMPORTANCE OF PLANNING
 Planning provides direction.
 Planning reduce risks of uncertainty.
 Planning reduces overlapping and wasteful
activities.
 Planning promotes innovative ideas.
 Planning facilitates decision making.
 Planning establish standard for controlling.

13. PLANNING PROVIDES DIRECTION
 Planning ensures clarity in objectives or goals.
 It act as a guide for
deciding what action
should be taken and in
which direction.

14. PLANNING REDUCE RISK OF
UNCERTAINTY
 Planning shows way to deal with changes and
uncertain events.
 Changes or events
cannot be eliminated
but can be anticipate.

15. PLANNING REDUCE OVERLAPPING AND
WASTEFULACTIVITIES
 Planning serve as the basis of coordinating the
activities and efforts of different department.
 Useless and redundant
activities are minimised
or eliminated.

16. PLANNING PROMOTES INNOVATIVE
IDEAS
 Planning forces managers to think differently
and assume the future conditions.
 Identify new ideas and
Prepare concrete plans
based on this ideas.

17. PLANNING FACILITATE DECISION
MAKING
 Planning involves setting targets and
predicting future conditions thus helps in
taking rational decision.

18. PLANNING ESTABLISH STANDARD FOR
CONTROLLING
 Planning provides the goals
or standard against which actual
performance is measured.

19. LIMITATIONS OF PLANNING

20. CASE STUDY
 Anil is a sole proprietor. He invest 5 lakhs to
extend his business. Organisation has a plan of
increasing profit by 20% with in 5 years. He
spend lot of time and money to frame and
implement the plan. Due to demonetization, the
business is failed to achieve the target with in the
period.
 Identify the reason for failure of the plan?

21. LIMITATIONS OF PLANNING….
 Planning leads rigidity.
 Planning may not work in a dynamic
environment.
 Planning reduce creativity.
 Planning involve huge cost.
 Planning is a time consuming process.
 Planning does not guarantee success.

22. PLANNING LEADS TO RIGIDITY
 Planning have limited flexibility.
 When circumstances have change, manager
may not be in a position to change the plan.

23. PLANNING MAY NOT WORK IN A
DYNAMIC ENVIRONMENT
 The business environment is dynamic in
nature.
 Plan may not be changed according to such
changes.

24. PLANNING REDUCE CREATIVITY
 Planning is done by the top management and
rest of the members just implement these plan.

25. PLANNING INVOLVES HUGE COSTS
 When plans are drawn up huge cost is
involved in their implementation.

26. PLANNING IS A TIME CONSUMING
PROCESS
 Plan to be drawn up take so much of time that
there is not much time left for their
implementation.

27. PLANNING DOES NOT GUARANTEE
SUCCESS
 It is not always true that just because a plan
has worked before it will work again.

28. STEPS IN PLANNING
 Setting objectives
 Developing premises
 Identifying alternatives
 Evaluating the alternatives
 Selecting the alternatives
 Implementing the plan
 Follow up

29. CASE STUDY
Delhi Trip
 Your batch is decided to go for a tour to Delhi. The
responsibility to plan the trip is assigned to commerce
teacher. Teacher searched about the weather conditions and
scheduled the journey after November. There are different
alternative ways to reach Delhi, by train, bus or flight.
After analysing the expected cost and time teacher selected
train journey. They completed journey within the estimated
time and cost. They realised that the reason for the success
of the journey is well formulated and executed plan.so the
teacher decided to use the same plan for the coming years
also.

30. SETTING OBJECTIVES
 The objective must be clear and specific.

31. DEVELOPING PREMISES
Assumption about future
is called premises.
Planning is done for
future, which is uncertain.

32. IDENTIFYING ALTERNATIVES
 Different ways to achieve
an objective is called alternatives.

33. EVALUATING THE ALTERNATIVES
 Positive and negative aspects of each
alternatives should be evaluated based on their
feasibility and consequence.

34. SELECTING THE ALTERNATIVES
 Most appropriate one is to be selected after
evaluating the alternatives.

35. IMPLEMENTING THE PLAN
 Putting plan into action to achieve the
objectives.

36. FOLLOW UP
 Plans are to be evaluated regularly to check
whether they are proceeding in right way.

37. TYPES OF
PLAN

38. Plans can be classified into two
:
2.Single use plan
i. Budget
ii. Programme
1. Standing plan
i. Objective
ii. Strategy
iii.Policy
iv.Rule
v. Procedure
vi.Method

39. Objectives
Something that
the organisation
wish to achieve.

40. Strategy
The things done by
organisation to
achieve the
objectives.

41. Policy
Provide guidelines in
decision making
Eg: recruitment policy,
pricing policy

42. Procedure
Steps undertaken to
implement a policy

43. Rules
Guidelines for conducting an
action

44. Methods
Specific guidance for
day to day action

45. Programs
• Activities for
achieving given
task.
• Detailed statement
about a project
which outlines the
objectives, policies,
procedure, rules,
task etc..

46. Budget
States expected results
for given period in
numerical terms

48. Objective
Increase sales by
10%

49. Promotion is based
on merit only
Policy

50. Conducting different
tests, interviews for
selection
Procedure

51. Employees should
report for work daily
at 10am
Rule

52. Increase production of a
product by 10% in the
year 2019-2020
Objective

53. Commerce graduates
should be selected to
accounts department
Policies

54. Conducting a seminar
Programme

55. Sales budget may forecast the
sales of different products in
each area for a particular
month
Budget

56. The company follows time
rate system of wage
payment
Method

57. No smoking in the
factory
Rule

58. A company gives free
samples for sales
promotion
Strategy

59. Attain Rs. 2000000
in 2019
Objective

60. Selling goods only
on cash basis
Policy

61. Offering 20% jobs
to women
Policy

62. All employees should
mark their attendance
before 9 am
Rule

63. The company provides
training to employees
through on the job training
methods
Method

64. Recruitment
procedure
Procedure