PLANNING Flashcards
COM EXAM
TYPES OF PLAN
1.PROGRAMMES
2. BUDGETS
3.RULES
4. METHODS
5. PROCEDURES
6.POLICIES
7. STRATEGY
8. OBJECTIVES
PROGRAMMES
A programme is a comprehensive plan designed to implement the policies and accomplish the objectives
TYPES OF PROGRAMME
MAJOR PROGRAMME
It is a basic plan. eg. - Programme to eradicate poverty, programme to reduce unemployment etc
MINOR PROGRAMME
A derivative programme designed to implement major problem
FEATURES OF A PROGRAMMES
1.single - use
2. objectives and policies
3. action plan
4. smooth and efficient
BUDGET
A budget is a plan that states the expected results of a given future period in numerical terms.
It is a plan of action or blueprint designed to achieve specific goals.
It may be expressed in time, money or physical units
FEATURES OF BUDGET
1 quantitative terms
2 future oriented
3 time period
4 types
RULES
Rules are specific statements of what should or what should not be done in a specific situation.
Rules are helpful in maintaining discipline.
A rule may or may not be a part of a procedure
FEATURES OF RULES
- Specific Statements
- Discipline
- Applicable
METHODS
Methods are formalized and standardized ways of accomplishing repetitive or routine jobs.
Example: there are various methods for charging depreciation on fixed assets such as straight line method, diminishing method etc. A business firm can select any of these methods
Standardized method represent the best way of performing jobs
A method prescribes the manner of performing tasks
FEATURES OF METHODS
- Instruction and Guidance
- Uniformity
- Standardize Method
- Overall Guidance
PROCEDURES
A procedure describes the exact manner in which a certain activity is to be performed.
It is a chronological sequence of steps to be taken.
It spells out series of steps arranged in some predetermined best order
Procedures are guide to actions.
FEATURES OF PROCEDURES
- Chronological Order
- Sequence
- Design
- Facts
OBJECTIVES
Every organization is established to achieve some purpose which is called Objectives
The process of planning begins with setting of objectives
Objectives may be defined as purposes or aims which an organization wants to achieve over different time periods.
FEATURES OF OBJECTIVES
- time bound
- clear and specific
- measurable
- flexible
- results
STANDING AND SLEEPING PLANS
STANDING PLANS OR REPEAT USE OF PLANS
Some plans are used repeatedly in similar situations
eg. policies, procedures, objectives and rules
SLEEPING PLANS OR SINGLE USE PLANS
Other type of plans are called single used pans because after every use this plans need to be reformulated.
eg. programmes, budgets, etc
STRATEGY
Strategy means a comprehensive and integrated plan which indicates the desired future of the organization.
It is a blueprint of the organization’s desired destination, direction and image.
FEATURES OF STRATEGY
1 long term and short term
2 flexible and dynamic
3 swot
4 formulated
5 full utilization of resources
POLICIES
A policy is a general statement that guides decision making
Policy defines boundary within which decision can be made and the direct decision towards the accomplishment of the objectives
Example : A policy of offering equal job opportunities to minorities and women contributes the objective of meeting social obligation
FEATURES OF POLICIES
1 Standing plan
2 guidelines
3 guide
4 all levels
5 decision and behaviour
STEPS IN PROCESS OF PLANNING
1 Setting Objectives
2 Developing Planning Premises
3 Identifying Alternative Course of Action
4 Evaluating Alternatives and Choosing the Best Alternative
5 Formulating Derivative Plans
6 Securing Cooperation
7 Follow up Action
IN THE 2ND STEP OF PLANNING (DEVELOPING THE PLANNING PREMISES) STATE THE KINDS
1 Tangible and Intangible Premise
2 Internal and External Premise
3 Controllable and Uncontrollable Premise
LIMITATION OF PLANNING
- Costly Process
- Time Consuming
3.Lack of Accuracy - False Sense of Security
- Human Element
IMPORTANCE OF PLANNING
- Bridges Gap between Present and Future
- Facilitates decision Making
- Provides Basis of Control
4.Focuses Attention on Objectives
5.Brings Order in Place of Chaos
PLANNING
A process of deciding in advance the objectives to be achieved in a given time period,formulating alternative course of action to achieve them and selecting the best course of action.
