, BUSINESS STUDIES
PLANNING
• Every organization whether it is government-owned, a private owned business requires
planning.
• Dreams can be turned into reality only if business managers think in advance on what to
do and how to do it. This is the essence of planning.
• DEFINITION - Planning is deciding in advance what to do and how to do it.
OR Planning is defined as setting objectives for a given time period, formulating various
courses of action to achieve them, and selecting the best possible alternative from among
the various courses of action available.
• Planning seeks to bridge the gap between where we are and where we want to go.
Planning is what managers do at every level.
• It involves setting objectives and developing appropriate courses of action to achieve
these objectives.
IMPORTANCE OF PLANNING
1. Provides direction – planning ensures that the goals or objectives are clearly stated
so that they act as a guide for deciding what action should be taken and in which
direction.
▪ If goals are well defined, employees are aware of what the organization has to do
and what they must do to achieve those goals.
▪ Departments and individuals in the organization are able to work in coordination.
2. Reduces the risk of uncertainty - planning enables a manager to look ahead and
anticipate changes.
▪ It helps the manager to foresee the future by making assumptions keeping in mind
their past experiences and environment changes.
3. Reduces overlapping and wasteful activities – planning serves as the basis of
coordinating activities and efforts of different people.
▪ It helps in avoiding confusion and misunderstanding.
▪ Since planning ensures clarity in thought and action, there are no chances of
overlapping or duplication of work.
PLANNING
• Every organization whether it is government-owned, a private owned business requires
planning.
• Dreams can be turned into reality only if business managers think in advance on what to
do and how to do it. This is the essence of planning.
• DEFINITION - Planning is deciding in advance what to do and how to do it.
OR Planning is defined as setting objectives for a given time period, formulating various
courses of action to achieve them, and selecting the best possible alternative from among
the various courses of action available.
• Planning seeks to bridge the gap between where we are and where we want to go.
Planning is what managers do at every level.
• It involves setting objectives and developing appropriate courses of action to achieve
these objectives.
IMPORTANCE OF PLANNING
1. Provides direction – planning ensures that the goals or objectives are clearly stated
so that they act as a guide for deciding what action should be taken and in which
direction.
▪ If goals are well defined, employees are aware of what the organization has to do
and what they must do to achieve those goals.
▪ Departments and individuals in the organization are able to work in coordination.
2. Reduces the risk of uncertainty - planning enables a manager to look ahead and
anticipate changes.
▪ It helps the manager to foresee the future by making assumptions keeping in mind
their past experiences and environment changes.
3. Reduces overlapping and wasteful activities – planning serves as the basis of
coordinating activities and efforts of different people.
▪ It helps in avoiding confusion and misunderstanding.
▪ Since planning ensures clarity in thought and action, there are no chances of
overlapping or duplication of work.
