Here we are providing Class 12 Business Studies Important Extra Questions and Answers Chapter 4 Planning. Business Studies Class 12 Important Questions are the best resource for students which helps in class 12 board exams.

Class 12 Business Studies Chapter 4 Important Extra Questions Planning

Planning Important Extra Questions Short Answer Type

Question 1.
Why is planning regarded as a pervasive function of management? (1992,1999,2002)
Planning is needed for all activities at all levels although the nature and extent of planning vary with the delegated authority, or position a person is holding in the organizational hierarchy and with the broad guidelines outlined by his superiors. Thus planning is a pervasive function of Management.

Question 2.
What are the key elements in the concept-of Planning? (2001)
The key elements in. the concept of planning is –

  1. Establishing clear, precise, and realistic objectives.
  2. Determining and evaluating the various available alternatives of doing the task.
  3. Selecting the most suitable alternative.

Question 3.
“Planning restricts creativity” Explain. (2000,2002)
Planning involves deciding in advance what is to be done, how it is to be done and when it is to be done, and by whom. Thus all organizational activities are pre-conceived and pre-determined at the stage of planning itself and there is very little or no scope for deviating from the plans due to factors like capital investments, government policies, and so on. This blind conformity with predetermined guidelines discourages individual initiative and freedom.

Question 4.
“Planning is a basic function of management” Explain. (2001)
Among various functions of management, planning occupies the foremost position. It precedes the execution of all other managerial functions because it provides the frame of reference for future decisions, reduces the overall impact of changes, and allows managers to organize, staff direct, and control the activities necessary.

Question 5.
Distinguish between goals and objectives.

Goals Objectives
1. Goals are the overall or collective ends of the organization. 1. Objectives are specific and particular ends of the organization.
2. Goals are not expressed in numerical terms. 2. Objectives are always expressçd in numerical terms.
3. Goals are generally made for the long term. 3. Objectives are mostly made for the short term and these must be achieved within a specific time limit.
4. Example – Increase in sales or becoming the leader in the market. 4. Increase in sales by 10% in 6 months’ time or increase in market share by 20% in 1 year.

Question 6.
“Planning is not a guarantee of success of a business.” Comment.
It is right to say that planning is not a guarantee of the success of a business because the planning function is based on certain assumptions regarding the future and no one care to give a guarantee that assumptions regarding the future are a hundred percent accurate. The planning function suffers from certain limitations which may be lack of accuracy, cost problem, delay in action, etc.

Planning Important Extra Questions Long Answer Type

Question 1.
Explain the nature and characteristics of planning.
“No enterprise can achieve its objective without systematic planning”. Do you agree with the statement?(1990, 1992, 1993, 1995, 1996, 1997, 1999, 2004) (2003)
Characteristics of Planning:
1. Goal Oriented: Goals or objectives are the end results towards which activity is directed. The first stage of planning is the conscious and explicit statement of the ultimate objectives.

2. Primacy of Planning: Among various functions of management planning occupies the foremost position. Planning precedes the execution of all other managerial functions because it provides a frame of reference for future decisions. Allows managers to organize staff directly and control the activities necessary to achieve the organizational goals.

3. Pervasiveness of Planning: Planning is needed for all activities at all levels although the nature and extent of planning vary with the delegated authority or position a person is holding in the organizational hierarchy and with the board guidelines provided by his superiors.

4. Intellectual Process: Planning involves logical thinking and decision making. It implies determining what is to be done; how and when it is to be done and by whom. All these decisions require ability, experience, and foresightedness on the part of the management.

5. Continuous function: Planning is a continuous activity. As a matter of fact, the planning process continues so long as an enterprise is in existence.

6. Flexibility: Effective plans have an element of flexibility! Management can’t afford to follow rigid plans in the era of fast changes in the technology market, government policy, etc.

As we all know, the resources of an organization are limited. Planning aims at providing the blueprints to optimum utilization of given resources to achieve the desired goals. Thus it can be concluded that no enterprise can achieve its objectives without systematic planning.

Question 2.
Why is planning necessary for effective management? Give reasons. (1993,1994,1996,1997,2004)
Planning is important for better management of business planning determines objective, decides the course of action, removes uncertainty results in economics in operation, and makes control possible its importance is analyzed as below.
1. Takes care of future uncertainties: Future is full of uncertainties planning takes care of all future uncertainties and minimizes business risks since it makes effective use of forecasting techniques.

2. Focuses attention on objectives: All planning is directed towards achieving the objectives of an enterprise. Planning makes these objectives more concrete and tangible by determining the program’s policies, procedures that provide guidelines to the employees to achieve these objectives.

3. Facilitates decision making: Decision making is the core of planning. It is the process of developing and selecting a course of action from among the various alternatives available. Planning provides a framework for decision-making by specifying the organizational objectives and planning premises.

4. Facilitates Control: Controlling is the process that measures current performance against desired standards to ensure that the objectives are attained according to plans. Control is always exercised in the light of planning which provides performance standards in quantitative terms.

5. Promotes efficiency: Proper planning ensures better utilization of organizational resources. Planning involves the selection of the best or most profitable course of action. This reduces the idle time for workers, machines, and so on.

6. Helps in Co-ordination: Planning is necessary for the organization as a whole. Derivative plans are prepared for each department within the limits of the master plan. Thus planning leads to the coordination of activities of all the departments in order to achieve the basic objective of the organization.