What is Planning?
Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence, planning is firmly correlated with discovery and creativity. But the manager would first have to set goals. Planning is an essential step what managers at all levels take. It needs holding on to the decisions since it includes selecting a choice from alternative ways of performance.
Importance of Planning
Planning is definitely significant as it directs us where to go, it furnishes direction and decreases the danger of risk by making predictions. The significant advantages of planning are provided below:
- Planning provides directions: Planning assures that the objectives are certainly asserted so that they serve as a model for determining what action should be taken and in which direction. If objects are well established, employees are informed of what the company has to do and what they need do to accomplish those purposes.
- Planning decreases the chances of risk: Planning is an activity which permits a manager to look forward and predict changes. By determining in prior the tasks to be completed, planning notes the way to deal with changes and unpredictable effects.
- Planning decreases overlapping and wasteful activities: Planning works as the foundation of organising the activities and purposes of distinct branches, departments, and people. It assists in avoiding chaos and confusion. Since planning guarantees precision in understanding and action, work is conducted on easily without delays.
- Planning encourages innovative ideas: Since it is the primary function of management, new approaches can take the form of actual plans. It is the most challenging project for the management as it leads all planned actions pointing to growth and of the business.
- Planning aids decision making: It encourages the manager to look into the future and make a decision from amongst several alternative plans of action. The manager has to assess each option and pick the most viable plan.
|MEANING OF PLANNING||Planning bridges the gap between where we are (present) and where we want to go (future).|
In simple words, foreseeing the future contingencies and plan for it to accomplish an objective.
|IMPORTANCE OF PLANNING|
|(1) OVERLAPPING AND WASTEFUL ACTIVITIES|
|(2) PROVIDES DIRECTIONS|
A car manufacturing company gives targets to employees who decide their direction of work.
|(3) INNOVATIVE IDEAS|
|(4) REDUCES THE RISKS OF UNCERTAINTY|
|(5) DECISION MAKING|
|(6) SET STANDARDS FOR CONTROLLING|
|Q.1- “Lack of planning brings chaos and lack of coordination.” Identify the statement and choose the correct answer.|
|a. Planning reduces the risks of uncertainty|
b. Planning reduces overlapping and wasteful activities
c. Planning provides directions
d. None of the above
Answer : d. None of the above
|Q.2- “Planning provides _________________ and reducing the risk of uncertainty, planning helps managers in the many other ways.”|
d. None of the above
Answer : b. Direction
|Q.3-“Without _________________, actual performance of each individual, department, and division cannot be measured.”|
Answer : a. Planning
|5-6 MARKS QUESTIONS|
|Q.1 WHAT IS PLANNING? HOW DOES IT HELP AN ORGANISATION IN ACHIEVING ITS GOALS?|
DEFINE ‘PLANNING’ STATE ANY FOUR POINTS OF IMPORTANCE OF PLANNING. (OUTSIDE DELHI 2014)
IN ADDITION TO PROVIDING DIRECTIONS AND REDUCING THE RISK OF UNCERTAINTY PLANNING HELPS MANAGERS IN THE MANY OTHER WAYS.’ EXPLAIN ANY FOUR SUCH WAYS. (DELHI COMPTT. 2014)
IS PLANNING ACTUALLY WORTH THE HUGE COSTS INVOLVED? EXPLAIN. (NCERT)
|(A) MEANING OF PLANNING|
|(B) IMPORTANCE OF PLANNING:|
|(a) REDUCES OVERLAPPING AND WASTEFUL ACTIVITIES|
|(b) PROVIDES DIRECTION|
|(c) PROMOTES INNOVATIVE IDEAS|
|(d) REDUCES THE RISKS OF UNCERTAINTY|
|(e) FACILITATES DECISION MAKING|
Marketing experts in a company choose the best marketing strategy out of available alternatives, to promote the product of a company.
|(f) SET STANDARDS FOR CONTROLLING|
|1 MARK QUESTIONS|
|Q.1 DEFINE ‘PLANNING’. (OUTSIDE DELHI COMPARTMENT 2015)|
|ANSWER: Planning bridges the gap between where we are (present) and where we want to go (future).|
|Q.2 PLANNING PROVIDES DIRECTIONS. WHAT IS DIRECTION IN PLANNING?|
HOW DOES PLANNING PROVIDE DIRECTION? (NCERT)
|ANSWER: Planning helps to build a roadmap to achieve the goals of the organisation and directs all activities towards that course of action.|
|Q.3 PLANNING MAY HAVE DIFFERENT ALTERNATIVES AND THE MANAGERS COMPARE THESE ALTERNATIVES TO ACHIEVE THE BEST FEASIBLE ALTERNATIVE. IDENTIFY WHICH POINT OF IMPORTANCE IS HIGHLIGHTED HERE?|
|ANSWER: Planning facilitates decision making.|
|Q.4 WHAT IS THE PURPOSE OF SETTING STANDARDS IN THE PROCESS OF PLANNING?|
|ANSWER: Standards set in the planning process help in the measurement of actual performance and thus, deviations are found and corrected in time|
|Q.5 DREAMS CAN BE TURNED INTO REALITY ONLY WHEN MANAGERS THINK IN ADVANCE WHAT TO DO AND HOW TO DO IT. NAME THE FUNCTION OF MANAGEMENT INDICATED BY THE STATEMENT. (DELHI COMPTT. 2014)|
|Q.6 ‘DECIDING IN ADVANCE WHAT TO DO AND HOW TO DO’ IS ONE OF THE BASIC MANAGEMENT FUNCTIONS’. GIVE THE MEANING OF THIS FUNCTION. (OUTSIDE DELHI COMPTT. 2014)|
|ANSWER: The function of management referred in the above statement is planning which bridges the gap between where we are (present) and where we want to go (future).|
|Q.7 AT WHICH LEVEL OF MANAGEMENT IS PLANNING FUNCTION PERFORMED?|
|ANSWER: At all levels of management.|
|Q.8 WHAT ARE THE MAIN POINTS IN THE DEFINITION OF PLANNING? (NCERT)|
(a) What is to be done?
(b) How it is to be done?
(c) Where is it to be done?
(d) When is to be done?
(e) By whom it is to be done?
The above mentioned is the concept, that is elucidated in detail about the ‘Planning’ for the class 12 Commerce students. To know more, stay tuned to CoolGyan’S.