This GSEB Class 12 Organization of Commerce and Management Notes Chapter 3 Planning covers all the important topics and concepts as mentioned in the chapter.
Planning Class 12 GSEB Notes
- Concept of Planning: Planning is to decide about what is to be achieved in future and how ? To consider about various alternatives for the same and from those alternative the best alternative is to be selected.
- Definition of Planning: According to Dr George R. Terry, “Function of planning means, assumption for results, policy to follow function, stages and to decide the method to be followed.”
Characteristics of Planning:
- Planning is universal.
- Planning is primary function of management.
- Planning is conscious and mental process.
- Flexibility is the precondition of planning.
- Accuracy/exactness is part of planning.
- Forecasting is essential in planning.
- List of various plans and alternatives.
- Planning is concerned with future.
- Planning is continuous process.
- Planning is objective oriented activity and
- Planning requires decision process.
Importance of Planning:
- All activities are done systematically.
- Wastage of resources can be avoided.
- Planning reduces future uncertainties.
- Planning leads to precision.
- Useful for achievement of objectives.
- Planning brings smoothness in other managerial functions.
- Planning increases employees’ co-operation.
- Effective control becomes possible.
- Planning co-ordinates various activities’
Limitations of Planning:
- Uncertain Future,
- Expensive Process,
- Time Consuming Process
- Planning is Irrelevant
- Promote Rigidity
- Uncertainity of External Factors,
- Incomplete Information,
- Restriction on Employees’ Creativity and
- Use of Faulty Methods.
Process of Planning:
- Determination of Objective
- Clarifying Planning Premises,
- Collection and Analysis of Information,
- Preparation of Alternative Plan
- Evaluation of Alternatives
- Selection of the Best Alternative
- Formulation and Evaluation of Subsidiary Plan
- Evaluation of Plan.
Types of Planning:
- Standing Plan
- Strategic Plan
- Tactical Plan
- Operational Plan
- Single Use Plan
- Contingency Plan.
Element / Components of Planning:
- Objectives / Goals
- Budget and