MP Board Class 12th Business Studies Important Questions Chapter 4 Planning

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Table of content (TOC)

MP Board Class 12th Business Studies Important Questions Chapter 4 Planning

Planning Important Questions

Planning Objective Type Questions

Question 1.
Choose the correct answer :

Question 1.
Out of the following which one is the objective of planning :
(a) Forecast
(b) Thrift
(c) Fixed objective implementation
(d) all of the above.
Answer:
(d) all of the above.

Question 2.
“Planning is a cage to hold the future”. Who said this :
(a) Hart
(b) Henri Fayol
(c) Urwick
(d) Allen
Answer:
(d) Allen

Question 3.
The last step of planning is :
(a) Setting objectives
(b) Forecast
(c) Selection of best option
(d) Follow-up action.
Answer:
(d) Follow up action.

Question 4.
Which function ascertains fixation of future tasks of management:
(a) Planning
(b) Organizing
(c) Control
(d) Direction
Answer:
(a) Planning

Question 5.
Objectives should be :
(a) Ideal
(b) Complex
(c) Practical
(d) Single use
Answer:
(c) Practical

Question 6.
From the following which is not related to plan :
(a) Budget
(b) Motivation
(c) Programme
(d) Procedure.
Answer:
(b) Motivation

Question 7.
“Take all my wealth, industry just leave my organization, I will rebuild my business”.Who said this :
(a) Henri Fayol
(b) F.W. Taylor
(c) Henri Ford
(d) None of these.
Answer:
(c) Henri Ford

Question 2.
Write the answer in one word/sentence :

1. What is required for the achievement of objectives?
2. Which type of process is planning?
3. What is the base of managerial activity ?
4. What is important in removing future uncertainly ?
5. What type of process is planning ?
6. What is the base for the formulation of policies?
7. To do or not to do activities is affected by which factor ?
8. Is planning a process to see backward ?
9. What is called the financial plan for five or more than five years ?
10. At the time of planning, management needs to assume certain things what are they called?
11.  Among management functions, one function is considered as a function with no dependency on any other. Name it.
12. To analyze competition policies which plan is used ?
13. What is the name of the plan which specifies the tasks of the employee?
14. At what level the management has to do the planning?
15. Planning has intense connection with which function ?

Answer:

1. Effective planning
2. Intellectual process
3. Planning
4. Planning
5. Continuous process
6. Objectives
7. Rules
8. No
9. Long term financial planning
10. Hypotheses
11. Planning
12. View composition
13. Policy
14. At all levels
15. Control.

Question 3.
Write true or false :

1. Planning is a physical process.
2. Planning is a mental process.
3. Planning is the primary function of management.
4. Planning is the process of looking forward.
5. Planning is wastage of time.

Answer:

1. False
2. True
3. True
4. True
5. False

Question 4.
Fill in the blanks :

1. ……….. is such method which completes the work.
2. Planning is ……………. oriented process.
3. ………….. is the primary function of management.
4. Without objectives cannot be achieved.
5. Budget is a plan of expected for future.

Answer:

1. Process
2. Aim
3. Planning
4. Target
5. Expenditure.

Question 5.
Match the columns :

Answers:

1. (d)
2. (e)
3. (b)
4. (f)
5. (a)
6. (c)

Planning Very Short Answer Type Questions

Question 1.
Give any two definitions of planning.
Answer:
According to Billy E. Goals: “Planning is fundamentally choosing and a planning problem arises only when an alternative course of actions is discovered.”According to George RTerry: “Planning is a method to technique of looking ahead . a constructive reviewing of future needs, so that present actions can be adjusted in view of the established goals”.

Question 2.
Is planning a primary function of management?
Answer:
Yes, the primary function of management is planning other functions take place after planning. First of all plans are prepared and to attain the objectives other functions helps in achieving it.

Question 3.
What is the relation of planning with control?
Or
Bring out the relation between planning and control.
Ans. Though planning and control are primary functions, they cannot be thought of a distinct operations exclusive of each others. In fact, planning form the basis of control. Control is backward looking whereas planning is forward looking. Without plans, actions cannot be controlled efficiently. Hence, plans are required for efficient control of activities.

Question 4.
“For effective control planning is essential”. Explain.
Answer:
Management control involves keeping activities on the right path by restricting deviations from the plans. Through planning management establishes standards of performance. this serves as yardstick for appraisal of actual performance. If actual performance is not as per plane corrective action is taken. This is how planning helps in effective control.

Question 5.
What do you mean by planning?
Answer:
Planning is a predetermined cause of action by which the management fixes its goal and to achieve them selects the best alternative from the available alternatives and prepares a blueprint of what is to be done, by whom, when etc.

Question 6.
What will be the effect on the organization if the planning is not done?
Answer:
In the absence of planning workers will do the work in different directions and organizations will not be successful in achieving the objectives.

Question 7.
Selecting the best course from the alternatives is planning”. Explain.
Answer:
After analyzing and evaluating of the best courses, the next step of planning is to select the best alternative. Best alternative should be selected very carefully because it is on the basis of this alternative, all future activity will be carried on.

Question 8.
“Planning is a cage kept to get future”. Explain.
Answer:
Planning is concerned with deciding in advance, what is to be done in future. Thus, it is a predetermined course of action to achieve a specified aim or goal. In today’s world it is very essential to make proper planning to achieve an aim. An effective plan can go a long way in minimizing dangers and risks associated with future.

Question 9.
Through planning future uncertainty is kept away”. Explain.
Answer:
Without proper planning there remains uncertainty in every future work. To escape from this uncertainty, planning is very necessary. To face all the future conditions planning is almost necessary.

Question 10.
“Planning is helpful in utilizing the resources”. Explain.
Answer:
Planning guarantees the best possible use of limited resources available because an organization estimates its requirements while planning. Planning ensures the optimum use of physical and non-physical resources of an enterprise.

On the basis of figures and tendencies inference can be made about the future. It helps achieving  target easily. Thus, misuse of resources can be stopped by planning.

Question ll.
“Planning is having a lot of importance for any nation”. Explain.
Answer:
For any nation, Planning is having a lot of importance. Through planning only the various plans related to the development of trade, industry, agriculture, etc. are prepared in order to eradicate the evils of the nation like poverty, illiteracy, unemployment, etc. Due to national planning only the employment opportunities are increasing, literacy level is improving and industries are developing. All these things have been made possible only because of planning.

Question 12.
“Without planning, the attainment of goals is impossible.” Explain.
Answer:
Every enterprise has a definite aim or objective. These definite aims can be achieved in time when all the activities are performed in a perfect manner. When all the activities are done according to plans then objectives can be achieved easily.

Question 13.
Budget is a type of planning. How?
Answer:
Budget is an important part of planning without a budget, planning is incomplete, preparation of budget itself is a planning process.

Question 14.
The budget is related to both planning and control.
Answer:
When we prepare a budget then its relation is with planning and when we use it as an instrument to measure deviations it is related to control.

Question 15.
“Planning is a continuous process.” Explain.
Answer:
Planning occupies the first place in the list of managerial function, it is continuous process and well known and never ending activity. Planning is aimed at
(a) Exploiting business opportunities
(b) Meeting problem and improving organizational function. Continuity of planning is related with planning cycle. It means that a plan is formed, it is implemented and followed by another plan and so on.

Planning Short Answer Type Questions

Question 1.
“Planning is mental activity” explains.
Answer:
Planning is an intellectual activity requiring the application of the mind, imagination, and sound judgment. It is a thinking function rather than a doing function as it determines the actions to be taken. Moreover, planning requires logical and systematic thinking based on the analysis of facts and figures.

Question 2.
What do you mean by derivative plans/standing plans? Is support plan standing plan?
Answer:
Derivative plans are the plans which support the main plans to achieve the set goal. Yes, support plans are derivative plans as they provide assistance and support to the main plan.

Question 3.
Why is planning futuristic?
Answer:
Planning is futuristic because it is related to the future and also for casts of future

Question 4.
What remedies are planned to overcome the limitations of planning?
Answer:
Following remedies are planned to overcome the limitations of planning:

1. Planning should be focused on current and future problems.
2. Planning must be done by top-level management.
3. For the success of planning all the workers must cooperate.
4. Complete information of planning must be formulated to concern people.
5. Planning should always be based on authentic data.
6. Planning must be flexible.

Question 5.
What do 5 W’s stand for in planning?
Answer:
What, where, when, why, who are the 5 Ws.

Question 6.
How many types of barricades are there? Explain.
Answer:
Barricades are of two types :
(a) External barricade: It means the barricade used to handle problems from competitors.
(b) Internal Barricade: It means the barricade used to handle problems generated within the organization.

Question 7.
Is budget related to both planning and control?
Answer:
Whenever a budget is prepared with a plan therefore it is related to planning whenever it is used to as a device to measure the result then it is related to control. Therefore it is said that it is related to both planning and control.

Question 8.
What will be the impact if planning is not made?
Answer:
Planning is a predefined way to do the task. If there is no plan then the task may get deviated and need to work in various directions. It will lead to failure in achievement of goal.

Question 8.
“Planning is not an assurance to success”. Explain this statement.
Answer:
Business can only be successful when plans are properly prepared and executed. Business environment is not still its keeps changing. Planning cannot stop the organization. These are only the forcasted problems of the organization which are planned and are to be executed in the situation. Even-after a lot of efforts while planning still plans fail. Therefore it is said planning is not an assurance to success.

Question 10.
Explain the following policies :

1. Personal policy
2. Sales policy
3. Pricing policy

Answer:

1. Personal policy: It means that policy that ascertains the promotion policy of employee either on the basis of capability or experience.
2. Sales policy: This policy states regarding the sale of goods in cash or in credit also.
3. Pricing policy : This policy states the fixing of prices of goods after adding the decided amount of the profit.

Question 11.
Explain two limitations that are beyond the control of a human.
Answer:
The limitations are as follows :

1. Natural calamity : Natural calamities are unpredictable and can happen anytime and anywhere and are always beyond the control.
2. Behavior of market: Trend and change in fashion market keeps changing everyday so as the with new and variety of goods which in turn changes the interest of customer.

Question 12.
Is control possible without planning?
Answer:
Planning is considered a prerequisite of control. It basically aims at the requisites of the real state implementation and a measure of level is made. To know the differences, it is essential to have some predefined strategies and planning which when are unavailable leads to collision of tasks. If there were no predefined plans it would never lead to improvement in the working procedure and enlistment of organization. Therefore it is said that control is impossible without planning.

Question 13.
Distinguish between Budget and Programme.
Answer:

Budget

1. Budget usually has a time span of one year.
2. Budget gives more importance to finance.
3. Budget is a timetable to achieve general objectives of the organization.
4. Budget is considered as the basis for a bigger financial planning.

Programme

1. Programme usually have a time span till the desired goal is achieved.
2. Programme lays emphasis on finance and programme procedure.
3. Programme is a sequential or time based timetable for achieving a specific goal.
4. Usually each programme has its own budget.

Question 14.
Distinguish between Standing plan and Single plan.
Answer:
Difference between Standing plan and Single plan :

Basis	Standing plan	Single plan
Time	These plans are made for a long-period usually of more than 5 years.	These plans are made for 1 month to 12 months.
Object	The objective of this plan is and usually is implemented for a longer span.	These plans are made for a specific objective and after accompleshment they get over.
Base	Longer span plans are based on the objective of the organization.	Single plan is based on plans.
Use	They are used for a longer period. They are also known as routine plans.	Single plan are for a single objective and after completition they are closed.

Question 15.
“Planning is helpful in utilizing the resources” Explain.
Answer:
Planning guarantees the best possible use of limited resources available because an organization estimates its requirements while planning. Planning ensures the optimum use of physical and non-physical resources of an enterprise

Question 16.
Distinguish between Rule and Procedure.
Answer:
Difference between Rule and Procedure :

Basis of difference	Rule	Procedure
1.Decision	Rule is a decision taken before which is implemented in special circumstances.	In procedure there is a specific way of work.
2.Area	There is no procedure	Scope of procedure is broad because it has its own rules.
3.Punishment	When rule is violated there is arrangement of punishment.	There is no requirement of punishment from the beginning.
4.Flexible	There is lack of flexibility.	It is more flexible comparatively.

Question 17.
State Some differences between Objectives and Policies.
Answer:
Differences between Objectives and Policies :

Objectives

1. Objectives are fundamental.
2. Objectives indicate the destination.
3. Objectives decide what is to be done.
4. Objectives determined by top level management.
5. Business gives birth to objectives.

Policies

1. Policies are guidelines.
2. Policies indicate the route for destination.
3. Policies decide now is to be done.
4. Policies determined by middle level or top level management.
5. Objective gives birth to policies.

Question 18.
Write the characteristics of aims or objectives.
Answer:
Following are the characteristics of aims:

1. Fixation of aims is done generally by top level management of organization
2. It explains about the facts in future which the organization wants to achieve
3. It gives directions to many plans of trade
4. Each department of organization has its own objectives
5. Aims may be long-term or short-term.

Question 19.
What is the importance of objectives?
Answer:
Importance of objectives:

1. It gives directions to the decisions and activities of the organization
2. Good objectives bring managerial efficiency
3. They make coordination easy
4. They help in best use of resources.

Question 20.
Write the characteristics of the procedure.
Answer:
Following are the characteristics of procedure :

1. Procedure refers to operational guidelines.
2. Procedures are laid down by middle and lower management.
3. Procedures are detailed, specific and rigid.
4. Procedures represents systematic manners of handling routine tasks.
5. Procedures are made for internal people to follow them.
6. Procedures have closed relation with policies.
7. It is a systematic method to operate regular incidences.

Question 21.
Write the characteristics of strategy.
Answer:
Strategies are one time used plans because they are changing according to changing in market conditions. It has three dimensions :

1. Fixation of long-term targets
2. To accept specific procedure
3. Distribute resources to achieve target.

Question 22.
Write the importance of strategy.
Answer:

1. Strategy is an extensive plan which is prepared keeping in mind the competitions.
2. With the help of strategy organization can take advantage of environmental opportunity.
3. Organization can face environmental obstacles with the help of strategy.

Question 23.
Write any three methods to control the limitations of planning.
Answer:

1. More attention should be paid to collect reliable facts.
2. Employees participation should be there in planning.
3. While planning environment should be studied deeply.

Question 24.
Describe the characteristics of an ideal planning.
Answer:

1. Definite goals : Planning has certain definite aims and on the basis of these aims, plans are prepared.
2. Forecasting : Forecasting has much importance in planning, forecasting is done on the basis of information and data.
3. Selection of best alternatives : While preparing planning a comparison is made from all the alternatives and then best alternative is selected.
4. Flexibility : Planning always has the quality of flexibility. It means a changes is made according to circumstances.
5. Continuity : Planning is not such a matter to be prepared at once only. Planning work continues.
6. Unity : Unity is the most important characteristics of planing. Atone time only one planning can be effective.

Question 25.
How is planning helpful in decision-making?
Answer:
In planning aims are determined with the help of these objectives the manager evaluate the various alternatives and selects appropriate alternative. On the basis of decision is taken that what to do

Question 26.
Write distinguish between method and budget.
Answer:
Distinguish between method and budget : Method is that type of planning which determines the order of various activities to fulfill any work. It is related to any one activity. To complete any work there may be various methods. Out of many methods one method is selected in which less fatigueness and more production with less cost of production. Methods work as direction for employees.

Budget: It is a statement of various sources of income and expenditure from specific activities. It is an import part of planning.

Question 27.
Distinguish between goals and programme.
Answer:
Goals or objectives: Goals and objectives are the basis of planning objectives are achieved through policies, procedures etc. These are the endpoints of organization.
Programmes: A comprehensive plan to complete or finish a work is called programmes. Programmes are guided by objectives, policies and strategy.

Planning Answer Type Questions

Question 1.
What are the limitations of planning?
Or
What are the obstacles of planning?
Answer:
The followings are the limitations of planning :

1. Planning depends upon forecasting: Planning is based upon the anticipated fiscal and industrial policies. Any change in the anticipated situation may render plans ineffective.
2. Hindrance in the development of initiative: Planning strangulates the initiative
   of works and compels management to work with inelastic methods. .
3. Lack of business flexibility: Planning makes business operations inelastic.
4. Planning is an expensive process: Collection, analysis and evaluation of the different information facts and alternatives involve a lot of expense.
5. Incompetent planners: If those entrusted with the task of planning are incompetent,
   the entire phm will prove to b,e defective.

Question 2.
Describe the importance of planning.
Or
Give five advantages of planning.
Answer:
The importance of planning are as follows :

1. Basis of all managerial activity: Planning precedes all managerial activity. Without proper planning, all other functions like coordination, control, motivation, etc. cannot be carried out in an efficient manner. Hence, it is important.

2. Minimizes uncertainty : Planning is done in anticipation of future uncertainties. It enables the organization to forecast the future and prepare itself for the future challenges. An effective plan can go a long way in minimizing dangers and risks associated with the future.

3. To avoid hasty decision : To avoid hasty decision pre planning is essential with the help of planning, the perfect and accurate decision can be taken easily.

4. Best utilization of resources : Planning guarantees the best possible use of limited resources available, because an organization estimates its requirements while planning.

5. Minimization of cost : When estimates are made taking into consideration the future uncertainties, steps are taken to reduce cost at various levels of operation. Hence, waste ages are avoided and costs are kept to the minimum.

6. Encourages initiative and creativity : Sound planning encourages innovative thought and creative action among executives. It improves motivation and moral of
employees.

7. Facilitates effective communication : Planning makes communication effective. When work proceeds as per plans, communication is made easier and routine matters are, very easily tackled. Hence, it makes communication effective.

8. Helps in coordination : Planning helps to secure unity of purpose. Individual activities are pulled together towards a common goal. Hence, it brings about coordination also.

Question 3.
Write short notes on the following :

1. Goals or objectives
2. Policies
3. Budget
4. Strategy
5. Programmes.

Answer:

1. Goals or objectives: Goals or objectives are the basis of planning. Objectives act as nuclecus to the planning process specific objectives have to be laid down which can be achieved with the help of policies, procedures, rules, budgets, stategies etc. Objectives are the end points of an organization.

2. Policies: The policies formulated by any enterprise guides or directs the management and administration (what and who is to be done). The principles which are followed to achieve the objectives are called policies. Policies guides the activities of management.

3. Budget: In simple words budget means the statement of various sources of income and expenditure from specific activities. According to Koontz and O’Donnell. “A budget, as a plan is statement of expected results expressed in numerical terms.”

Budget is an important part of planning without budget planning is incomplete. Preparation of budget itself is a planning process. Through budget the planning of use of financial resources is prepared,

4. Strategy : Strategy is an extensive plan which is prepared keeping in mind the competitions. Due to present cut throat competition and for the success of different types and forms of product in market, it is essential to make strategies. Nowadays every producer tries to bring his product in a unique way, in a new pack into the market and he wants to keep his plan secret by knowing the secrets of his competitor. This is called as strategy formulation.

5. Programmes : A comprehensive plan to complete or finish a work is called as a programme. Programme is also a type of plan. Programmes are guide.d by objective, policies and strategies. Once the objective of a programme is achieved that same programme cannot be used in the same form again.

Question 4.
Step five characteristics of planning.
Answer:
Characteristics/Nature of Planning An analysis of the above definitions reveals the following features of planning :

1. An Intellectual Process : Planning is a mental exercise involving creative thinking and imagination. A manager can prepare sound plans only when he has sound judgement, foresight and vision. Planning requires a mental predisposition to think before acting.

2. A Primary Function : Planning serves as the basis for all other functions of management. It precedes organizing, staffing, directing and controlling. All these functions are ! performed within the framework of plans, Thus, planning is the most primary function.

3. Goal-oriented : The purpose of formulating plan is that it facilitates that achievement enterprise’s goals. Every member of the enterprise must, therefore, positively contribute towards achievement of these goals.

4. A Continuous Process : Planning is an ongoing process. Plans are prepared for a specific time-period e.g., one year. At the end of that period, new plans have to be prepared. Similarly, as conditions change, existing plans have to be revised. Thus, planning is a never ending exercise.

5. Flexible : Plans are formulated on the basis of forecasts. As future is uncertain, planning must cope with changes in future conditions. When assumptions about the future do not come true, the original plan must be revised in the light of changing conditions.

6. Pervasive : Planning is required in all types of organization at all level of management. Every department prepares plans. However, the scope of planning may differ from one level to another. For example, top management plans for the organization as a whole. Middle management prepares departmental plans. At the lowest level, supervise formulate day to day operational plans.

Question 5.
Write the main objectives of planning,
Answer:
The main objectives of planning are as follows :

1. Setting the objectives : Definite goals and objectives are predetermined and then integrated efforts of human and physical factors are made for accomplishment of those set goals or desired goals.

2. Unity of action : The aim of planning is to create unity among various activities of an organization. Planning builds unity between resources and ability for better coordination.

3. Providing information : Through planning information is provided to the internal and external persons of the enterprise regarding the target and the process to achieve the objectives.

4. Economy in management: Planning leads to economy and efficiency. It involves the selection of most profitable course of action that would lead to the best result at the minimum costs.

5. Forecasting : The summary of planning is forecasting. On the basis of forecasting, present planning can be made.

6. Direction and operation : The object of planning is not only coordination between physical and human resources, but directing the collective efforts of the human force towards the goals.

7. Achievement of targets : The final or ultimate object of planning is to achieve the goals or targets which it has set.

8. Identifying dangers : Under planning, future plans are made and assumptions of result are made. Possibilities and dangers of an organization are dealt.

9. Healthy competition : Through planning one can create an atmosphere of healthy competition.

10. Total coordination : Planning helps in creating coordination among objectives, methods, rule/programmes etc.

Question 6.
What is the difference between Policy and Rule?
Answer:
Differences between Policy and Rule :

Question 7.
Distinguish between Policies and Procedures.
Answer:
Difference between Policies and Procedures :

Policies

1. Policies are made by the top-level authority.
2. They are made in a simple form.
3. They are directions for the ideas.
4. Policies play an important role.

Procedures

1. Procedures are the implementation of policies.
2. They are fixed by lower level of management.
3. They are made in a specific form.
4. They direct to take action.

Question 8.
Write the criteria of effective planning or principles of planning.
Answer:
Knootz O’ Donell has given importance to basic criteria of effective planning.

1. Principle of justification : Under this principle, whatever planning is done should be judge mental.

2. Principle of contribution to objectives : To achieve aims and goals of an organization is the aim of planning. If any planning fails in achieving the objectives in positive manner, then the results of such planning are not good.

3. Principle of assumption : Every work is based on assumptions, which are kept in mind and then work is carried on. Therefore, a goods planning should assume betted things before commencing work, this helps in coordination of work.

4. Principle of efficiency : According to this principle, at minimum cost, better and maximum quantity of goods should be produced. Thus, planned efficiency should be put in the work for desired goals.

5. Principle of pervasiveness: Planning is a work which is present everywhere, which is needed in every part of management. Therefore, planning should be according to the need of every department.

6. Principle of flexibility: Planning should be flexible, so that if any unexpected loss occurs, factors affecting the cause can be changed.

7. Principle of time .: Time plays an important role planning therefore while planning element of time should be kept in mind to attain desired goals.

8. Principle of changeability : Work should be regularly checked by the manager keeping in mind the changing situations of market and if necessary or need, changes in planning should be done.

9. Principle of policy decision : To give effective shape to the planning of an organization, strong policy and good programmes should be designed so that desired objectives of an organization can be achieved.

10. Principle of alternative route : To commence any work there are various alternative solutions. During planning all the alternative should be studied and such alternative should be choosen which helps the organization in achieving its goals.

11. Principle of competitive campaign : If there are other competitors in the market along with business organization then the organization while planning should keep in mind the techniques and planning or method of work adopted by competitors and such type pf plan should be framed which proves to be more strong and better than competitors.

12. Principle of evaluation : Manager should at regular invervals evaluate their plans so that under certain required situations they could be changed or corrected.

13. Principle of cooperation : For the success of planning, it is very essential that a cooperation is maintained between different levels of officers and workers.

14. Principle of communication: An effective communication is the need of planning. Through better Communication only workers can be informed on time about policies, corrections, work etc.

15. Principle of continuity : Planning is a continuous process therefore planning department should always be alert and attentive.

Question 9.
Discuss the steps of planning.
Answer:
The followings are the steps of planning :

1. Establishment of objectives: Objectives serve as a basis for planning. They act as a nucleus to planning process and they are the end-points of an organization. So, objectives have to be established.

2. Deciding planning premises : It involves forecasting and the possible areas, where planning is required. It provides a logical basis for planning.

3. Fixing limitations: Limitations refer to those factors which restrict the freedom of planning for management. Possible limitations could be a change in technology, industrial unrest, availability of material, etc.

4. Determination of alternate courses : For every plan, there are number of alternatives. Hence, all these alternatives have to be identified.

5. Evaluation and selection of alternatives : After weighing each alternative, on the basis of cost, speed, quality, the best alternative has to be selected.

6. Formulate derivative plans : The next step is to formulate secondary or derived plans. Derived plans help in execution of main plans. These derivatives or derived plans are also called as departmental plans.

7. Follow-up : As a last step, continuous appraisal of plans should be made, so that further could be made, if required.

Question 10.
Explain the elements of planning.
Answer:
Followings are the elements of planning:

1. Goals or objectives: Goals or Objectives are the basis of planning. Objectives act as nuclecus to the planning process specific objectives have to be laid down which can be achieved with the help of policies, procedures, rules, budgets, stategies etc. Objectives are the end points of an organization.

2. Policies: The policies formulated by any enterprise guides or directs the management and administration (what and who is to be done). The principles which are followed to achieve the objectives are called policies. Policies guides the activities of management.

3. Budget: In simple words budget means the statement of various sources of income and expenditure from specific activities. According to Koontz and O’Donnell. “A budget as a plan is statement of expected results expressed in numerical terms.”Budget is an important part of planning without budget planning is incomplete. Preparation of budget itself is a planning process. Through budget the planning of use of financial resources is prepared.

4. Strategy: Strategy is an extensive plan which is prepared keeping in mind the competitions. Due to present cut throat competition and for the success of different types and forms of product in market it is essential to make strategies. Nowadays every producer tries to bring his product in a unique way, in a new pack into the market and he wants to keep his plan secret by knowing the secrets of his competitor. This is called as strategy formulation.

5. Programmes: A comprehensive plan to complete or finish a work is called as a programme. Programme is also a type of plan. Programmes are guided by objective, policies and strategies. Once the objective of a programme is achieved that same programme cannot be used in the same form again.