CHAPTER - 4

PLANNING
MEANING:-
Planning means thinking is advance what is to be done, when it is to be done, how is to be done and by whom it should be
done.
NATURE/FEATURES/CHARACTERSTCIS:-
P C M ki Padhi Faltu Dimag Chati hai
P- Primary function of management: Planning id the primary or first function to be performed by every manager.
C- Contributes to objective: Planning start with the determination of objectives. We cannot think of planning in absence of
objective.
M- Mental exercise
P- Pervasive: Planning is required at all levels of the management and in all types of organization.
F- Futuristic/Forward looking: Planning always means looking ahead or planning is a futuristic function. Planning is never done
for the past.
D- Decision making: The planning function is needed only when different alternatives are available and we have to select most
suitable alternative.
C- Continuous process: Planning is never ending or continuous process because after making plans also one has to be in touch
with the changes in changing environment and in the selection of one best way.
IMPORTANCE:-
Dr. Provident Fund me jamma kar ke Fixed Rate se Earn karta hai
D- Direction: Planning is concerned with predetermined course of action. It provides the direction to the efforts of employees.
R- Reduces the risk of uncertainties: Planning helps the manager to face the uncertainty because planners try to foresee the
future by making some assumptions regarding future keeping in mind their past experiences and scanning of business
environment.
P- Promote innovative idea: Planning requires high thinking and it is an intellectual process so there is great scope of finding
great ideas.
F- Facilitate decision making: Planning helps the managers to take various decisions.
F- Focus attention on the objective of company
R- Reduce overlapping and wasteful activities: The organisational plans are made keeping in mind the requirement of all
departments. As a result there will be co-ordination in different department.
E- Establishes standard for controlling: Controlling means comparisons between planned and actual output and if there is
variation between both then find out the reasons for such deviations and taking measures to match the actual output with the
planned.
PLANNING PROCESS
Objective set karna phir premises develop karna, phir alternative ka juggard karna objective ko achieve karne ke liye, phir sab
alternative ko pura evaluate karke unme se ek select karna, select ke baad implement karke followup karna.
LIMITATION OF PLANNING:
Internal limitation
DIL Tod k Rulana Maat
D- Does not give guarantee success: Sometimes managers have false sense of security that plans have worked successfully in
past so these will be working in future also.
I – Involves huge cost: Planning process involves lot of cost because it is an intellectual process and companies need to hire the
professional experts to carry on this business.
L- 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.
T- Time consuming Process: Planning process is a time consuming process because it takes long time to evaluate the
alternatives and select the best one.
R- Reduce creativity: With the planning the managers of the organisation start working rigidly and they became the blind
followers of the plan only.
L- Lack of accuracy
M- May not work in dynamic environment: Business environment is very dynamic as there are continuously changes taking
place in economic, political and legal environment. It becomes very difficult to forecast these future changes.

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 CHAPTER - 4

External limitations of planning: Natural calamity, change in competitor’s policies, change in taste/fashion and trends in the
market, change in technology, change in government/economic policy.
PLAN: Plan is a document that outlines how goals are going to be met.
SINGLE USE PLAN: Used once only, for specific situation, every time new plan for new situation.
STANDING PLANS: recurring plans, stable in nature, guidelines for smooth functioning of organisation.
TYPES OF PLANS
♣ OBJECTIVE (neither single nor standing plan): Objective should be specific, measurable, achievable, relevant, time
bound (SMART).
♣ STRATEGY (neither single nor standing plan): A strategy is a comprehensive plan to achieve the organisational
objectives. It is a blue print, influence by business environment, future decision making.
♣ POLICIES (standing plan): Policies can be defined as organisational general response to a particular problem or
situation. It is based on objectives, guides managers to implement strategy. Eg. “No credit sale policy”.
♣ PROCEDURES (standing plan): Procedures are required steps established in advance to handle future conditions. It
refers to the sequence of steps, meant for insiders only, chronological order.-
♣ METHODS (standing plan): Methods can be defined as formulated or systematic way of doing routine or repetitive
jobs (depreciation on WDV or SLM)
♣ RULES (standing plan): Code of conduct or general instructions, specify what to do and what not to do, rigid,
stringent and compulsive.
♣ PROGRAMMES (single use plan): Programmes are the combination of objectives, policies, procedure and rules.
♣ BUDGET (single use plan): Budget is the statement of expected results expressed in numerical terms. Serves as
standard for measuring and comparing actual performance. Quantifies future facts and figures.

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