NCERT XII BUSINESS STUDIES

1. CHAPTER 4
PLANNING

2. Meaning
PLANNING MEANS DECIDING IN
ADVANCE WHAT IS TO BE DONE,
WHEN IT IS TO BE DONE AND BY
WHOM IT IS TO BE DONE
TO PLAN MEANS TO LOOK AHEAD AND
CHALK OUT FUTURE COURSE OF
ACTION

3. DEFINITION
“PLANNING IS DECIDING THE BEST
ALTERNATIVE AMONG OTHERS TO PERFORM
DIFFERENT MANAGERIAL OPERATIONS IN
ORDER TO ACHIEVE THE PREDETERMINED GOALS” –
HENRY FAYOL

4. STEPS IN PLANNING

12. IMPORTANCE OF PLANNING
PROVIDES DIRECTIONS
ESTABLISHES STANDARDS
FOR CONTROLLING
HELPS IN EFFECTIVE COORDINATION
FACILITATES DECISION
MAKING
PRMOTES INNOVATIVE IDEAS
REDUCES OVERLAPPING
AND WASTEFUL ACTIVITIES
REDUCES THE RISK OF
UNCERTAINITY

14. There are two types of plans that relate to training:
Single use plan
Standing PLANS

15. Hierarchy of Plans
Objectives
Policies
Strategies
Rules
Proedures
Methods
Programmes
Budgets
Long Term
plan
Short
Term
plan

16. Objectives
 Objective are goals, aims or purposes that organisation
wish over varying periods of time
 No Planning is possible without setting up of Objectives.
 Objectives are realted to the future and are an essential
part of the planning process
 Goals and Objectives Should Be SMARTER
Specific
Measurable
Acceptable
Realistic
Timeframe
Extending
Rewarding

17. Strategies
 Outline how you will achieve your goals
 The cluster of decisions and actions that managers
take to help an oraganization reach its goal
 refers to a Plan of action designed to achieve a
particular Goal

18. Policies
 Policies are general statements or understandings
which provide guidance in Decision Making to various
managers.
 Policies define boundaries within which decisions can
be made and decision are directed towards the
acheivements of objectives.

19. Procedures
 Procedures are details of action or the guidelines for
the achievement of business objectives.
 Procedures give detail of how things are to be done
 Policies also determine the policy of responsibility and
accountability
 A procedure is a set of step-by-step directions that
explains how activities or tasks are to be carried out.

20. METHODS
 Methods provide prescribed ways or manner in which
a task has to be performed considering the objective
 It deals with how the steps in procedure is to be
performed

21. Rules
 A Rule is definite and rigid and allows no deviation or
discretion to the Suboedinates.
 Rules channel the behaviour of workers in a desired
direction
 A rule is an explicit statement that tells an employee
what he or she can and cannot do. Rules are “do” and
“don't” statements put into place to promote the safety
of employees and the uniform treatment and behavior
of employees.

22. Programs
 A Program is a sequence of activities designed to
implement policies and accomplish objectives.
 Program may be taken as a combination of
Policies,procedures,rules,budgets,task assignment , etc
developed for specific purpose of carrying out a
particulars course of action.

23. budgets
 A pre-determined statement of management policy
during period which provides a standard for
comparison with the results actually achieved
 There should be an active invlovement of top
management while preparing a budget.

24. We must plan for the future, because people who stay in the
present will remain in the past.