(1)What is planning? Explain its characteristics.
Ans :-

• Planning is to collect informations for the activities to be undertaken in business, consider them in advance and plan out how to do these activities.
• Planning is an intellectual process to achieve goal.
  Characteristics
  1) Universal Process
  2) Primary Function
  3) Conscious and Mental Process
  4) Flexibility
  5) Precise
  6) Forecasting is Essential
  7) List of Alternatives
  8) Concerned with Future
  9) Continuous Process
  10) Objective Oriented Activity
  11) Requires Decision Process

(1)Universal Process:

• Planning is a universal process.
• It is present in every field like business, politics, education, religion or a social field.

(2)Primary Function:

• Planning is the primary function of management.
• Management starts with planning.
• Other functions of management like organizing, staffing, directing, confralling are implemented on the basis of planning.

(3)Conscious and Mental Process:

• Planning is a conscious and mental process because in planning, decisions are takenconsciously and on the basis of calculative assumptions.

(4)Flexibility:

• Planning contains various calculations and assumptions.
• Business enterprise is affected by external factors therefore necessary changes should be made in planning as per time, circumstances and situations.
• Flexibility is the precondition for planning.
• Planning is not a stable element.

(5)Precise :

• Planning is a process for the future.
• The matters considered for planning are to be studied exactly,
• Statistical data, collected informations, etc. must be perfect and appropriate

(6) Forecasting is Essential:

• Forecasting is done by considering future uncertainties while making a plan for a business unit.
• Therefore, forecasting and planning are considered as the first function of management.

(7)List of Alternatives:

• Planning in any field includes various plans and alternatives
• E.g. There can be many alternatives to Increase the sales in future like increase in advertisement, reduction in prices, training to salesman or declaration of attractive offers to increase the etc.
• Selection of the best alternative out of it is to be done

(8)Concerned with Future:

• Planning presumes uncertainties involved in future.
• Forecasting and assumptions are done later on.
• In short, planning is related with future because it is evaluating future at present and accordingly making arrangement for the same.

(9)Continuous Process:

• Planning is a continuous and constant/regular process.
• Planning is that process which begins with the establishment of the organization and continuous till the end.
• As per time and circumstances, the plans are also required to be changed.

(10)Objective Oriented Activity :

• Planning is made to achieve pre-determined objectives of the business.
• Management decides future targets as per objectives of business.
• Accomplishment of objective becomes easy if the targets are useful & clear.
• Thus, planning is an objective oriented activity.

(11)Requires Decision Process:

• Planning involves selection of the best alternative.
• Various alternatives are considered and assumptions are made and the decision s taken to select the best alternative.
• Thus decision making process is necessary in planning.

(2)Give the definition of planning and explain its process.
Ans :-
(A) Planning:

• The task of collecting information for the activities to be undertaken in business, consider them in advance and plan out how to do these activities is called planning. Planning is an intellectual process to achieve business goals.

(B) Process of planning:
The stage-wise process of framing a plan is discussed below:
1. Determination of objectives:

• The first step in planning is to set the objectives.
• It is said that, if objectives are determined properly then it becomes extremely useful for the management.
• Planners should set realistic, intellectual and achievable objectives.

2. Clarifying planning premises:

• The forecast or the assumptions about future which provide a base for planning in present are known as planning premises.
• After determining the objective, it is important to clarify the planning premises.
• Forecasting is made after considering the internal and external factors that affects the business unit.
• Unclear and imprecise premises can fail a plan.

3. Collection and analysis of information:

• Once the planning premises is done, the planners gather necessary information. The information may be gathered through direct sources or indirect sources.
• The information is then classified, analyzed and interpreted. This helps to make assumptions for desired results.

4. Preparation of alternative plan:

• After collecting, analyzing and interpreting information, alternative plan is to be made. An alternative plan and list of alternatives help in case if the main plan does not work as planned or if there are some unforeseen changes in the market.
• The list of alternative steps could be whether to sale the goods by producing on our own or by purchasing and re-selling, second alternative for the material to be used, etc.

5. Evaluation of alternatives:

• Once the list of alternatives is prepared, they are evaluated to see if they are suitable alternatives or not.
• How each alternative will affect the business and its processes is evaluated.
• Evaluation of alternatives is an intellectual process. Mathematical and statistical methods are used for the evaluation of alternatives.
• Business, units make use of a subject called Operation Research (O.R.) to ‘ prepare the model of an ideal plan.

6. Selection of the best alternative:

• The various alternatives are evaluated, analyzed and scrutinized and then the best alternative is selected.

7. Formulation and evaluation of subsidiary plan:

• Over and above the main plan, different projects or alternatives have to be considered as per basic plan or in support of basic plan. These plans are known as subsidiary/derivative plan.
• For example, a car manufacturing company is trying to make a decision to make tyres for its cars. On the other hand, it is also thinking to buy them rather than manufacturing. Such an alternative is considered subsidiary plan.
• Even the subsidiary plan is evaluated to assess that it does not obstruct the basic plan in future.

8. Evaluation of plan:

• Once the basic plan and the subsidiary plan are formed the entire plan is thoroughly evaluated. The business unit takes the help of experts and consultants to evaluate the plan as and when necessary.
• This third-party opinion helps the unit to get a correct opinion and also mistakes if any.
• The business unit follows the principle of ‘Look and Leap’ at every stage i.e. it evaluates the plan at every stage and then moves forward accordingly.

(3)Explain elements or components of planning.
Ans :-
Elements/Components of Planning

• Planning is an intellectual process. Planning is based on subsidiary plans and programmes, which are known as elements of planning.
• E.g. To prepare a budget for a unit, first of all departmental budget are prepared.
• After having the discussion regarding it, a final budget for entire business unit is prepared.

(1)objectives:

• The purpose of every business is to determine and fulfill objectives.
• So, it is important that the managers consider all the factors affecting business while drafting the plans.
• Objectives should be set and must be clear. It should not be over ambitious.

(2)Strategy:

• A plan of action designed to achieve a pre-decided long-term or overall aim is called a strategy.
• It makes the business unit capable enough to face the competition or to survive against the other factors.
• Strategy is used in the field like army and sports.
• Strategy should be kept confidential from the competitors.
• An ideal strategy gives guarantee of success of a business unit.

(3)Policy:

• Decisions and strategies are decided by management for accomplishment of objectives is known as policy.
• The type of policy framed by the business unit reflects the idea of efficiency and working style of the business unit.
• It gives an idea of efficiency and working style of the business unit. Like an objective.policy should be clear and real.
• E.g. Policy of sale of goods on credit basis.

(4)Method/Procedure:

• Method is an arrangement for carrying out business programmes.
• The business units develop various methods or procedures to conduct business activities.
• It helps to raise the chances of success.
• In short, method refers to the best way of performing a task.
• E.g., A business unit tries to fulfill the objectives of annual sale on the basis of figures available of quarterly sale.

(5) Rules:

• Rules are extermely important to accomplish the functions of planning.
• Rules decide the procedure and give the clear understanding.
• They also ensure that discipline among the employees. Rules make accomplishment of objectives and supervision easy.
• Through proper observance of rules it becomes easy for the unit to accomplish the objectives.
• E.g., “Use of mobile during working hours is prohibited”, “No smoking at workplace, etc.

(6) Budget:

• Budget is a tool that controls the outcomes and helps accomplishing business objectives.
• Different types of budget are prepared like capital expenditure budget, sales budget, production budget, production cost budget, cash budget, etc.
• Budget keeps control over the business activities and makes the management efficient one.

(7)Programme:

• The sequence of activities undertaken by a business unit to accomplish a task is called programme.
• If the work is done according to programme then the objectives can be fulfilled without any confusions or hindrances.
• The management sees to it that the work is done as per the programme as well as per the standards set. Corrective measures are taken in case if there are deviations.

(4)Explain limitations of planning.
Ans :-

• Planning is a universal process.
• None of the fields can work without planning.
• Planning is a guiding factor, which is neither perfect nor imperfect.
  As per experts and reviewer, the limitations of planning are as follows:

1) Uncertain future
2) Expensive Process
3) Time Consuming
4) Planning is Irrelevant
5) Tends towards Rigidity
6) Uncertainty of External Factors
7) Incomplete Information
8) Restriction on Employees’ Creativity
9) Use of Faulty Methods

(1) Uncertain future :-

• Planning is based on assumptions and forecasting which is made for the future.
• But future is uncertain . Therefore assumptions are not fully correct.
• Uncertainties prevail in planning as it is related with future.

(2) Expensive process:

•  Expert have to be engaged for planning function.
• Since these experts are highly experienced and knowledgeable they charge high consultation fees for assisting in framing the plans.
• Moreover,the framing of plans require time, eneregy and money.
• Thus planning is an expensive process.

(3) Time Consuming:

• Planning involves collection of necessary informations, its clasifications, analysis and interpretation to decide alternatives for the business.
• Thus it is a lengthy and time consuming process.

(4)Planning is irrelevant:

• Planning involves uncertainties,Although planning is extremely important but future is uncertain. There are chances of changes in government policies, tax slabs, price, demand, supply, etc.
• Planning becomes irrelevant due to time, circumstances or factors affecting business unit.
• Any major change can fail even a solid plan and hence planning becomes irrelevant in such a situation.
• In that case, planning is liable to fail.,

(5)Tends towards Rigidity:

• Planning is adopted as a programme for the future.If any adverse situation occurs, managers or employees do not take the risk of deviating(move) from the plan.
• They stick to the planning during implementation stage.Thus, planning leads to rigidity.

(6) Uncertainty of External Factors:

• Business units are affected by external factors which keep on changing.
• That hinders the success of planning.

(7) Incomplete information:

• Necessary informations is the pre-condition that are to be collected for the planning process.
• Formulation and implementation of plan on the basis of incomplete and unclear informations may not give the desired result.

(8) Restricts creativity of employees:

• Implementation of planning is done by employees of the business unit.
• Though employees have creativity, cannot make any changes in planning during it implementation.
• Thus planning restricts the creativity of employees.

(9) Use of faulty methods:

• While deciding assumptions and estimates, different mathematical and statistical methods are used.
• If these or informations are not appropriate, faulty decisions are taken.
• Thus planning is liable to fail.

(10) Other limitations:
Over and above these limitations, many other factors that affect planning are changes in technology, prejudice of planner, ignorance of facts, problem of leadership, etc.

Conclusion:

• Other than there, many other factors are affecting planning like changes in technology, partiality of planner, ignorance of facts, problem of leadership, etc.
• Inspite of it. planning allows us to control the change.
• It is fact that there is no alternative for planning

(5)Discuss types of plan.
Ans :-
There are six types of plan, which are as follows:
1) Standing Plan
2) Strategic Plan
3) Tactical Plan
4) Operational Plan
5) Single Use Plan
6) Contingency Plan

(1)Standing Plan :

• When there is repetition of some specific activities in an organization then the organization forms a plan to take care of that activity. Such a plan is called standing plan.
• Policies, methods and rules are decided for a long time period in planning process.
• Standing plans provide guidelines for taking decisions in repetitive situation hence standing plan can be used repeatedly.
• Standing plans help the subordinates to take prompt decision.
• No employee will need the permission of superior regarding the same.

(2)Strategic Plan:

• Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
• Based on their philosophies the business units decide several business objectives.
• For the accomplishment of objectives, long term and short term strategies are decided.
• The unit then develops short term as well as long term strategies for achieving the desired objectives. This is called strategic planning.

(3) Tactical plan:

• For the accomplishment of business objectives, short term plans are prepared by middle level of management, it is known as Tactical Plan.
• For the accomplishment of business objectives, short term plans are prepared by middle level of management, it is known as Tactical Plan.
• These are plans which usually span one year or less. These plans clarify short term objectives.
• Hence business activities remain goal oriented and take place in a systematic manner.
• It is concerned with what the departmental heads and employees must do.
• Specialised knowledge and skill are necessary for the formulation of these plans.

(4)Operational plan:

• An operational plan is a detailed plan which provides a clear picture of how a team, department or an individual will contribute for achieving strategic goals of the organization. Operational plan is almost similar to tactical plan.
• Generally, operational plans are formed for short duration say about one year.
• Under this, plans related to monthly or quarterly production, sales, etc. are made for achieving of objectives of annual production.
• These plans are mainly formed for performing routine work and achieving daily targets.

(5)Single Use plan:

• A useful plan is prepared for achievement of special objectives.
• This plan is made for special activities. One time plan is applied to those activities which do not repeat.
• For example, for the activities like ship making, construction of house, packaging,printing, etc. this plan is important.

(6)Contingency plan:

• Business unit has to co-ordinate with changing situations.
• Business environment is also keep on changing due to political, economical, social or natural factors.
• Due to these reasons, if changes are to be made in original plan or a new plan is made, it is known as contingency plan.