Chapter ---Planning, Class XII commerce, Subject Business Studies

NAME OF THE TEACHER –SHIKHA(PGT COMMERCE)

Meaning of Planning – Deciding about all the aspect is called planning. A problem about taking decision on these matters rises when there are more than one possible answers.. therefore it can be said to be a process of choosing .

Definition of planning :

According ot koontz and O’donnell,” Planning is deciding in advance What to do , how to do it, when to do it, and who is to do it.”

Characteristics of planning

1 Planning focuses on achieving the objectives: Management begins with planning and planning begins with the determining of objectives. In the absence of objectives no organization can ever be thought about.

2 Planning is the primary function of Management: Planning is the first important function of management. The other functions –organising, staffing, directing and controlling come later. In the absence of planning no other function of management can be performed.

3 planning is continuous: Planning is the process which begins with the beginning of business itself and ends with the ending of the business. It means that as long a business exists, the planning process is continuous.

For example , a company plans to sell one lakh units in the coming year. Suddenly, many competing companies enter the market. This will naturally affect the previous position of the company and , therefore ,it shall have to revise its planning.

4. Planning is Futuristic: Planning decides the plan of action-What is to be done, how is to be done, when is to be done, by who is to be done, all the questions are related to future. Under the planning, answer to these questiona is found out. While an effort is made to find out these answer.

5. Planning is mental exercise: planning is known as a mental exercise as it is related to thinking before doing something.