PLANNING- INTRODUCTION Business Studies Class 12

Transcript:PLANNING- INTRODUCTION Business Studies Class 12:
PLANNING- INTRODUCTION Business Studies Class 12 UNIT -4::MODULE -1 By ABHISHIKTH SANDEEP ABRAHAM M.Phil, M.Com, MA(Pub.Rel & Journl), MBA (HR),B.Ed, BCJ, ICWAI(I), PGDT, PGDCMP, Dip.Tax, CDT, UGC-NET,APSLET, (PhD),UGC-MAN Research Fellow Awardee in Devp. Studies INTRODUCTION TO PLANNING A PLAN may be defined as – A detailed statement of a future COURSE OF ACTION (COA) set about to achieve a pre determined objective/goal & expressed in quantitative terms ( in Qty/Amt/etc) CHARACTERISTICS: It provides a rational approach to achieve predetermined objectives It is a commitment to accomplish required actions to achieve a goal PLANNING: It is the process of preparing a plan DEFINATIONS OF PLANNING Deciding in advance WHAT,HOW,WHEN a task is to be done & by WHOM it is to be done.-It refers to THINKING IN ADVANCE – (BY KOONTZ) Deciding in advance WHAT is to be done, and involves selection of objectives, policies, procedures, programmes, from amongst several alternatives. – (BY HARLEY) Abhishikth Sandeep .A. FEATURES OF PLANNING 1. PRIMARY FUNCTION OF MANAGEMENT: It is the first function performed by a manager. (Function of Primacy) 2. HELPS ACHIEVE OBJECTIVES: Once an objective is set, planning helps achieve it. 3. PERVASIVE: It is performed @ all levels of Mgt. & in all types of Org. 4. CONTINOUS: It is to be performed continuously (revised/reformulated) as the environment is dynamic & the Org. Has to keep pace with the changing business environment to sustain & face challenges 5. FUTURISTIC: It is related to actions to be taken in the future 6. INVOLVES DECISION MAKING: To accomplish a task, a number of alternative COA’s may be available, Planning helps evaluate & identify the best alternative ,enabling decision making 7. MENTAL EXERCISE: It is related to preparing a blue print for action in advance , which calls for mental work (thinking) Abhishikth Sandeep .A. IMPORTANCE FOR A BUSINESS Planning is needed to solve a problem or take advantage of a profitable situation. All activities are focussed towards the this end. PROVIDES DIRECTION: Business objectives are clearly defined- Planning helps focus all activities towards achieving it REDUCES RISK &UNCERTAINITY: Future is uncertain. In such a situation business actions are taken-Which is risky. Planning helps anticipate the future to a certain extent, thus helping the manager look ahead, anticipate change &decide in advance which tasks are to be performed. AVOIDS WASTEFUL EXPENDITURE: Planning puts an end to disorder & chaos (duplication & wasteful activities). It