CHAPTER 4: PLANNING (Total marks allotted=1+2+4=7+practical)

SECTION-A
1. What is planning?
ANS: - Planning is deciding in advance what to do and how to do. Planning bridges the gap
from where we are to where we want to go.
2. Which function of management involves decision making?
ANS: -Planning function of management involves decision making.
3. State the first step in Planning Process.
ANS: - The first and foremost step is setting objectives.
4. What is Single Use Plan?
ANS: - A single-use plan is developed for a one-time event or project.
5. What is Standing Plan?
ANS: - A standing plan is used for activities that occur regularly over a period of time.
6. Give an example for Single Use Plan.
ANS: -Budget is an example for Single Use Plan.
7. Give an example for Standing Plan.
ANS: - Procedures is an example for Standing Plan.
8. Give an example for a plan which is neither single nor standing plan.
Ans: - A strategy is an example for a plan which is neither single nor standing plan.
9. State the meaning of ‘Rule’
Ans: - :- Rules are specific statements that inform what is to be done.
10. What is a ‘Budget’?
Ans: -A budget is a statement of expected results expressed in numerical terms.
11. Which of the following statement is not correct with regard to Planning?
(a) It is a mental exercise (b) It provides direction for the future actions (c) Itis end function
in the process of management(d) It involves setting objectives and developing courses of
actions.
Ans:-(c) It is end function in the process of management
12. Which of the following is not the feature of the planning?
(a) It focuses on achieving objectives (b) It involves identification and
division of work (c) It is the primary function of the management
(d) It is a pervasive function
Ans:-(b) It involves identification and division of work
13. Which of the following is an example for the single use plan?
(a) Policy (b) Procedure (c) Budget (d) Method
Ans: - (c) Budget
14. Give an Example for Rule.
Ans: No admission without permission, No smoking.
15. Give an example for Budget.
Ans: Cash budget, Sales budget.
16. State any two importance of Planning.
Ans: 1) Planning provides direction 2) Planning provides innovative ideas.
SECTION-B
1. State any two features of Planning.
Ans: - Two features of Planning are
(i) Planning focuses on achieving objectives
(ii) Planning is a primary function of management
2. Give the meaning of Planning Premises.
Ans: - The manager is required to make certain assumptions about the future such as
population trend, capital, economic conditions, prices etc.. These assumptions are called
Planning premises.
3. What do you mean by ‘Objectives’?
Ans: - objectives refer to the end points towards which activities of the organizations are
directed. They specify the destination where we want to go. They are formulated by top level
management.
4. What is a ‘Strategy’?
Ans: - . It refers to future decisions defining the organisations direction and scope in the long
run.
5. What is a ‘Policy’?
Ans: - Policies are general statements that guide thinking or channelize energies towards a
particular direction.
6. What is ‘Procedure’?
Ans: - Procedures are routine steps on how to carry out activities. They detail the exact
manner in which any work is to be performed.
7. Give the meaning of ‘Programme’.
Ans: - Programmes are detailed statements about a project which outlines the objectives,
policies, procedures, rules, tasks, human and physical resources required to implement any
course of action.

SECTION-C
1. Explain the importance of Planning with any four points.
Ans: _Four Importance of Planning are as follows: -
1. Planning reduces the risks of uncertainty: Planning helps the business enterprises to
predict its future uncertain events and consider the impact of change and develop
appropriate responses.
2. Planning provides direction: -By stating in advance how the work is to be done
planning provides direction for action. If there was no planning, employees would be
working in different directions and the organization would not be able to achieve its
goals efficiently.
3. Planning promotes innovative ideas: Planning is basically the thinking function of
management. It encourages the managers for innovative and creative thinking new ideas
can take the shape of concrete plans.
4. Planning facilitates decision making: Decision making is the making of choice from
the various available alternatives after evaluating each of them. Planning reduces the
mistakes and oversight in the decision making.
2. Explain any four features of Planning.
Ans: -Four features of Planning are as follows: -
(i) Planning focuses on achieving objectives: Planning starts with the setting of objectives,
strategies etc to achieving the objectives of the organization it gives direction to various
activities to achieve the organizational goals.
(ii) Planning is pervasive: planning is required at all levels of management as well as in all
departments of the organization it is not exclusive function for top management or nor to a
particular department.
(iii) Planning is continuous: plans are prepared for a specific period at the end of that period
there is need for a new plan to be draw on the basis of new requirements hence planning is an
continues process it’s never ending.
(iv) Planning is a mental exercise: planning is a thinking process it require application of
the mind involving foresight intelligent imagination and sound judgment.
1. Explain any two types of Plans.
Ans:-(i) Objectives - objectives refer to the end points towards which activities of the
organizations are directed. They specify the destination where we want to go. They are
formulated by top level management Objectives need to be expressed in specific terms i.e.,
they should be measurable in quantitative terms in the form of written statement. They are of
two types: -a) Primary objectives: - Primary objectives are basic purpose of organization.
b) Collateral objectives: - collateral objectives are the objectives of the individuals and
groups viz., employees, creditors, investors and society.
Example: - Increase sales by 10%, Earn 20% R.O.I. etc.
(ii)Strategy: -A strategy refer to future decisions defining the organisations direction and
scope in the long run. Thus, we can say a strategy is a comprehensive plan for
accomplishing organisation objectives.
Formulation of strategies involves three aspects: -
1. Determination of long-term objectives.
2. Adopting a course of action to achieve the objectives.
3. Allocation of resources necessary to achieve the objectives.
(iii) Policies: - policies are general statement which act as a guide to decision making. They
provide frame work within which decision has to be taken. An established policy helps to
solve the problems and issues easily without any confusion.
Example: - purchase policy, Investment policy etc.
(iv)Procedures: - Procedures are clear cut administrative specifications prescribing the time
sequence for work to be done. It tells how a particular activity is to be carried out.
Example: - Procedure for execution of the customer’s order for supply of goods, procedure
for the admission of a students in a college etc.
(iv) Method: - Methods are standardized ways or manners in which a particular task has
to be performed. There may be many ways of completing a task but that method must be
selected by which work can be done easily and early at the minimum possible cost. Example:
- 1 Training employees under, on the job training method.
4. Explain the planning process.
Ans: Steps In Planning Or Planning Process are.
1. Setting objectives: - setting objectives is a first function in the process of planning.
Objectives are the goals which determine what the organization wants to achieve. They
must be specific, realistic, and measurable.
2. Developing premises: - Planning premises are the assumptions about the future
conditions and events like population trend, capital, economic conditions, prices etc.
These premises may be internal or external.
3. Identification of alternative course of action: - Once the objectives set and
assumptions are made the manager should find out the various alternative course of
action to achieve the objectives.
4. Evaluating alternative courses: - the manager has to evaluate each alternative with their
merits and demerits. It has to be done by giving more Weightage to various factors such
as risks, costs, quality, and benefits etc., involved in it.
5. Selecting an alternative: - After evaluating the various alternatives, the best is to be
selected. The best course of action must be feasible, profitable and with minimum
negative consequences.
6. Implementing the plan: - This step involves putting the plan into action and also
communicating the plan to every manager in the organization.
7. Follow up action (controlling the plans): - After the plan is put in to action, it is
necessary to measure the effectiveness of the planning. It means we have to check the
progress of the plan.

5. Explain any four limitations of planning.

2. Planning involves huge Costs: - Planning is a costly process. Lots of money has to
be spent for collection, analysis, evaluation of different information, facts and
alternatives.
3. Planning is a time consuming: - planning process is time consuming. Collection and
analysis of facts and figures, determination and evaluation of various courses of
action involves much time.
4. Planning does not guarantee success: -The success of an enterprise is possible only
when plans are properly drawn and implement. Sometimes managers depend on
previously tried

SECTION-E
1. As a manager what logical steps you follow in planning process before
executing a project? (7 steps)
Ans: -Logical Steps followed in Planning process before executing a project are
1. Setting objectives
2. Developing premises
3. Identification of alternative courses of action.
4. Evaluating alternative courses.
5. Selecting an alternative
6. Implement the plan.
7. Follow up action