Friday, 11 September 2020

CBSE Class 12 Business Studies - Chapter Planning (Questions and Answers)(#cbsenotes)(#class12BusinessStudies)(#eduvictors)(#planning)

Chapter Planning (Questions and Answers)

CBSE Class 12 Business Studies 

CBSE Class 12 Business Studies - Chapter Planning (Questions and Answers)(#cbsenotes)(#class12BusinessStudies)(#eduvictors)(#planning)

Q1: Define Planning.

Answer: Planning is deciding in advance what to do, how to do when to do and who has to do it. Thus, it involves setting objectives and developing an appropriate course of action to achieve those objectives. Planning bridges the gap from where we are to where we want to go. It is one of
the basic managerial functions.

Q2: What are the important features of planning?

Answer: Features of planning are:

1. Planning focuses on achieving objectives: by deciding upon the activities to be undertaken.

2. Planning is a primary function: as it precedes all functions of management i.e. organizing, staffing, directing and controlling.

3. Planning is pervasive: as it is required at all the levels of management but its scope may vary.

4. Planning is continuous: as plans need to be made on a continuous basis until an organization exists.

5. Planning is futuristic: as it seeks to meet future events effectively to the best advantage of an organization. Planning is, therefore, called a forward-looking function.

6. Planning involves decision-making: as it involves rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively.

7. Planning is a mental exercise as it is based on intellectual thinking involving foresight, visualization and judgment rather than guesswork.

👉 For a detailed answer, check this post on Features of Planning

Q3: Why is planning important? Give reasons.

Answer: Importance of Planning:

1. Planning provides direction as it acts as a guide for deciding what course of action should be taken to attain the organizational goals.

2. Planning reduces the risk of uncertainty arising due to the dynamic nature of the business environment as it enables a manager to anticipate and meet changes effectively.

3. Planning reduces overlapping and wasteful activities as it serves as the basis for coordinating the activities and efforts of different divisions and individuals.

4. Planning promotes innovation as it provides opportunities for managers to come up with new ideas that can take shape of concrete plans.

5. Planning facilitates decision making as it enables a manager to choose the best alternative course of action among the various available alternatives in light of present and future conditions.

6. Planning establishes standards for controlling. Planning provides standards against which the actual performance is measured and timely corrective actions the taken.

Q4: What are the limitations of planning?

Answer: Limitations of Planning are:

1. Planning leads to rigidity as plans are drawn in advance and managers may not be in a position to change them in the light of changed conditions.

2. Planning may not work in a dynamic environment: as through planning, everything cannot be foreseen, and if the environment is very dynamic (constantly changing), planning may not work with that perfection.

3. Planning reduces creativity: as the top management neither undertakes planning of various activities whereas the middle managers are neither allowed to deviate from plans nor are they permitted to act on their own.

4. Planning involves huge costs: in terms of time and money required to undertake scientific calculations and sometimes it may not justify the benefits derived from it.

5. Planning is a time-consuming process and sometimes there is not much time left for the implementation of the plans.

6. Planning does not guarantee success because it is not always essential that if a plan has worked before, it will work again, as things may change. This kind of complacency and a false sense of security may actually lead to failure instead of the success of a business.

Q5: Describe the steps involved in the planning process.

1. Setting Objectives: which are clear, specific and measurable, for the entire organization and every unit within the organization.

2. Developing Premises: which reflect the assumptions about the future that the manager is required to make since the future is uncertain like consumer preferences will not change in near future.

3. Identifying alternative courses of action through which the desired goals can be achieved.

4. Evaluating alternative courses: to analyze the relative pros and cons of each alternative in light of their feasibility and consequences.

5. Selecting the best alternative: or a combination of plans which appears to be most feasible.

6. Implement the plan: with the help of a strategy.

7. Follow up action in order to monitor the plans to ensure that the desired objectives are achieved efficiently and effectively.

Q6: ‘ Planning involves choice’ Comment

Answer: Planning essentially involves a choice from among various alternatives and objectives of there is one possible goal or only one possible course of action, there is no need for planning because there is no choice. The need for planning arises only when the alternative is available. In actual practice, planning presupposes the existence of alternatives, planning, thus, involves thorough examination and evaluation for each alternative and choosing the most appropriate one.

Q7(MCQ): Identify the best definition of planning
   A. The core activity of planners and planning departments.
   B. An integrated process, in which plans are formulated, carried out and controlled.
   C. Devising ways of achieving the objectives of an organisation.
   D. Setting an organization’s objectives and the means of reaching them. 

Answer: (D) Setting an organization’s objectives and the means of reaching them.

👉 See Also:

No comments:

Post a comment

We love to hear your thoughts about this post!