CHAPTER-4 PLANNING Flashcards
(30 cards)
What does planning mean?
Setting objectives and formulating an action plan to achieve them
It includes deciding in advance what to do, how to do, when to do, and who is going to do it.
What is one importance of planning?
Provides directions
By stating in advance how the work is to be done, planning provides direction for action.
How does planning reduce risks of uncertainty?
Enables a manager to look ahead and anticipate changes
By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.
What does planning help to avoid?
Overlapping and wasteful activities
It serves as the basis of coordinating the activities and efforts of different divisions, departments, and individuals.
What innovative aspect does planning promote?
Promotes innovative ideas
Since planning is the first function of management, new ideas can take the shape of concrete plans.
How does planning facilitate decision making?
Helps the manager to look into the future and make a choice from various alternatives
It allows managers to evaluate different courses of action.
What does planning establish for controlling?
Standards for controlling
Planning provides the goals or standards against which actual performance is measured.
What is a limitation of planning regarding rigidity?
Leads to rigidity
Once a plan is drawn, managers may not be in a position to change it.
Why may planning not work in a dynamic environment?
The business environment is dynamic and nothing is constant
It becomes difficult to accurately assess future trends if economic policies are modified or there is instability.
What effect does planning have on creativity?
Reduces creativity
Middle and lower-level managers implement plans without deviations, leading to a loss of initiative.
What are the costs involved in planning?
Involves huge costs
Costs may be in terms of time and money spent on checking the accuracy of facts.
How is planning time-consuming?
A lot of time is consumed in collection and analysis of data
This includes the choice of alternatives.
Does planning guarantee success?
No, it does not guarantee success
Previous successful plans may not work again in the future.
What is the first step in the process of planning?
Setting objectives
Objectives may be set for the entire organization and each department.
What is developed in the second step of planning?
Developing premises
Assumptions about future events are established.
What does the third step of planning involve?
Identifying alternative courses of action
All the alternative courses of action are identified.
What is evaluated in the fourth step of planning?
Evaluating alternative courses
The positive and negative aspects of each alternative are evaluated.
What is selected in the fifth step of planning?
Selecting an alternative
The most feasible and profitable alternative with the least negative consequences is chosen.
What happens in the sixth step of planning?
Implementing the plan
The selected plan is put into action.
What is the purpose of the follow-up action in planning?
To make changes in case of any deviations
Ensures that the plan remains relevant and effective.
What are the two types of plans?
Single-use and standing plans
A single-use plan is for a one-time event; a standing plan is for regular activities.
Define objectives in the context of planning.
Ends which the management seeks to achieve by its operations
They are fundamental to the organization.
What does a strategy provide in planning?
Broad contours of an organization’s business
It outlines the overall approach to achieving objectives.
