NCERT Solutions Class 12 Business Studies Chapter 4

NCERT Solutions Class 12 Business Studies Chapter 4 – Planning

To get a strong foothold on the topic of Planning, students may refer to Class 12 Business Studies Chapter 4 NCERT Solutions presented by Extramarks. Students of Class 12 can learn and revise essential points, definitions, and Q&A from the study material offered by NCERT Solutions for Class 12 Business Studies Chapter 4. These study materials are prepared by subject experts with years of teaching experience. Henceforth, students may use NCERT solutions for exam preparation.

NCERT Solutions for Class 12 Business Studies Chapter 4 is written in a simple language with point-by-point explanations. Students can access a variety of additional study tools in addition to the NCERT solutions by registering on Extramarks.

Key Topics Covered In NCERT Solutions Class 12 Business Studies Chapter 4

Following are the key topics covered in NCERT Solutions Class 12 Business Studies Chapter 4.

Students may refer to NCERT Solutions Class 12 Business Studies Chapter 4 provided by Extramarks to help prepare for their forthcoming examinations. The fundamentals of the chapter have been explained to help the students understand the topic in a better way. Here’s the detailed information on each subtopic in NCERT Solutions Class 12 Business Studies Chapter 4- Planning.

Introduction

Planning refers to a psychological process that includes determining ahead of time on what must be done and how it must be done. As a result, planning and creativity are closely interwoven. 

It is a mental activity in which management determines the objectives to be met and the actions to be carried out in order to achieve them. It is futuristic in character because it requires anticipating, assessing, and forecasting the future.

Planning is described as the process of creating goals and objectives for a given time period, formulating alternatives for the course of action to be pursued, and finally selecting a suitable path of action from a variety of options.

More information in the NCERT Solutions Class 12 business studies Chapter 4 include the highlighted points in the definition:

1. Time Period:

• The planning strategy must be tailored to a certain timeframe.
• It is possible that planning will be useless if it is not done in a timely manner. This is owing to the fact that the corporate environment changes over time, prompting the development of new strategies and activities as changes occur.

1. Setting Objectives:

• Planning must be focused on achieving a certain objective.
• It is necessary to have a definite aim in mind when planning.

1. An alternative course of action:

• An alternate course of action must be devised to identify which action will produce the best results with the least amount of money spent and the most effective achievement of objectives.

1. Deciding a course of action:

• Cost, time, availability, practicality, and other factors must all be considered while selecting the best alternative course of action.

Students may also refer to various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 4.

Importance of Planning

• Planning provides direction: Planning offers guidance for action by defining how work will be done in advance. Planning ensures that the goals or objectives are  defined clearly so that they may be used as a guide for selecting what action to take and in which direction to do it. Employees are aware of what the organisation must do and what they must do to attain those goals if goals are well stated.
• Planning reduces the risk of uncertainty: A manager’s ability to look ahead and foresee changes is enhanced through planning. Planning demonstrates how to deal with changes and unknown situations by determining the activities to be completed in advance. Changes and occurrences cannot be avoided, but they may be foreseen and management solutions devised.
• Planning reduces overlapping and wasteful activities: The base for coordinating the actions and efforts of departments, several divisions, and individuals is planning. It aids in the avoidance of ambiguity and misunderstanding. Work is carried out efficiently and without interruptions because preparation provides clarity in thinking and action.
• Planning promotes innovative ideas: New ideas can take the form of tangible plans since planning is the first job of management. It is the most challenging function for management since it directs all future actions that lead to the company’s growth and profitability.
• Planning facilitates decision making: Planning allows management to see into the future and choose from a variety of options. The management must weigh all options and choose the most realistic one. Setting goals and forecasting future situations are all part of planning, which aids in making sensible decisions.
• Planning establishes standards for controlling: Setting objectives is an important part of planning. Planning, organising, staffing, directing, and controlling are all aspects of the management process that are concerned with achieving predefined goals. Planning establishes the benchmarks or goals against which actual performance is evaluated. Managers can determine if they were able to achieve their objectives by comparing actual performance to some standard. It is possible to fix any deviations. As a result, we can conclude that planning is a precondition for controlling.

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Features of Planning

The following are the features of Planning as explained in NCERT Solutions Class 12 Business Studies Chapter 4:

• Planning is all Pervasive: Planning is required in all sorts of companies, at all levels of management, and in all departments. It is not a top-down function; rather, managers at all levels do it. Top-level management generates organisational plans, middle-level management creates departmental plans, and lower-level management creates day-to-day operations plans.
• Planning is Futuristic: Forecasting and planning are used to prepare for the future. The basic purpose of planning is to ensure that an organisation is prepared to address future events in the most effective way possible. It entails seeing into the future, assessing it, and creating forecasts. As a result, planning is a forward-thinking activity which is  thinking about and planning for the future.
• Planning is a mental exercise: Because it needs creativity, imagination, and higher-order thinking abilities, as well as solid judgment, planning is a cerebral activity. It’s a mental activity. Instead of guessing or wishful thinking, it needs rational and methodical reasoning.

Students may consider making revision notes while referring to NCERT Solutions Class 12 Business Studies Chapter 4 to get a better grasp of the topics.

Limitations of Planning

The planning process has its own set of limitations that make it difficult to meet all of an organisation’s goals. They are:

• Rigidity: A company develops a well-defined plan with precise goals that must be met within a certain time range. The future course of action is therefore determined by these plans, which managers may not be able to modify. This kind of rigidity in plans might lead to issues. Managers must be allowed some latitude to adjust to changing circumstances. Following a predefined strategy and maintaining rigidity as circumstances change may not be in the organisation’s best interests.
• Not able to deal with a Dynamic environment: The business environment is fluid and, as a result, unpredictable. Economic, political, physical, legal, and social issues all have a role in the environment. The organisation must adapt to changes on a regular basis. However, in times of change and uncertainty, planning cannot always precisely predict such changes and hence fails. This might lead to a failure to accomplish goals. The operations of a company must adapt to the changing environment.
• Extremely expensive: Making plans takes significant time and financial effort. Planning needs considerable effort and study since it is based on future assumptions. It includes scientific calculations, as well as numbers and information that will be utilised to develop a strategy. This comes at a high price. Furthermore, it is possible that the benefits of planning will be insufficient to cover the expenditures incurred.
• Not ensuring success: Preparation alone may not guarantee success. Managers usually rely on tried-and-true strategies that have previously shown to be successful. However, just because a method has worked in the past does not guarantee that it will work again in the future. Many unexpected developments might occur, leading to the strategy’s failure. Managers usually feel that planning will prevent issues from arising; nevertheless, they overlook the fact that planning is only a basis for projecting the future. It does not offer instant solutions to problems.
• Time-consuming: Making plans takes time since it necessitates anticipating unforeseen situations. It demands a thorough examination and assessment. As a result of the increased time spent by managers, real actions may be delayed. In addition, while preparing, numerous possibilities may be lost.
• Reduces creativity: Upper management is in charge of planning. The remainder of the members usually merely follow their plans. As a result, middle management and other decision-makers are forbidden from deviating from plans or acting on their own. As a result, they lose or limit a lot of their initiative and creativity. For the most part, employees do not even attempt to establish plans; instead, they just carry out orders. As a result, planning limits creativity in some ways because people tend to think in similar ways. Nothing is new or groundbreaking.

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Planning Process

The following are the steps  involved in the Planning Process:

• Setting up Objectives: The first stage in the planning process is to establish objectives and goals. Each organisation or business has a certain goal in mind. Managers must clearly explain these goals so that the best path to achieving them may be chosen. In addition, the plan’s goals must be shared at all levels of the business. It provides guidance to various departments/units so that they may work together to achieve the organisation’s common objectives. Management duties cannot be carried out without a clear understanding of the objectives.
• Developing the premises: Some assumptions about the future are formed during the planning process. Premises are the terms used to describe these assumptions. Future projections, historical intentions, and existing policies and realities are all part of the assumptions. The implementation of such principles should be adhered to by managers at all levels of the business who are involved in planning. The follow-up action is based on the same assumptions. These assumptions are crucial for the business since they define how future projects will go. As a consequence, adequate grounds for effective planning should be proposed.
• Identifying the alternatives: After the objectives and assumptions have been defined, the different courses of action that can be taken must be determined. 
• Evaluating the alternatives: After recognising the numerous routes of action, managers must examine them. This evaluation is based on the alternatives’ value and implications. Managers must consider the advantages and disadvantages of each decision. The advantages and disadvantages of each plan must be weighed against the desired outcome.
• Selecting the best: Choosing the best option means selecting the most effective approach to achieving the goal. Managers should apply their skills and expertise to evaluate and choose the most profitable, cost-effective, and feasible option. A range of numerous paths, rather than just one, may be taken. The ideal plan, of course, would be the most feasible, lucrative, and with the fewest negative consequences.
• Implementing: Additional management departments must be involved in the implementation of the options. It comprises planning and directing work in line with the course and policies that have been established. The goal of implementation is to stick to the selected course of action and determine how it will be carried out in order to be effective.
• Follow-up actions: For analysing the entire operation and implementation of the plans, continuous supervision of the activities is required. Keeping track of the tasks to be performed is a crucial part of the planning process since it ensures that the plan runs smoothly. As a result, thorough follow-up action boosts a plan’s success and, as a result, the attainment of its goals.

Students may access various other study materials on Extramarks while studying using NCERT Solutions Class 12 Business Studies Chapter 4.

Types of Plans

Types of plans can be classified into two types, single-use plans and standing plans. Refer to Extramarks NCERT Solutions Class 12 Business Studies Chapter 4 for details of the  topic for better understanding.

• Single-use Plan: A single-use plan is created for a one-time event or project. Such a line of action is unlikely to be repeated in the future, i.e. it is intended for one-time use. The project’s nature may determine the length of this plan. Budgets, programmes, and projects are all part of these plans. They include information such as the names of personnel who are in charge of doing the task and contributing to the single-use plan.
• Standing Plan: A standing plan is used for tasks that happen on a regular basis over time. Its purpose is to guarantee that an organisation’s internal processes function smoothly. This type of strategy considerably improves the efficiency of ordinary decision-making. It is normally created once and then adjusted as needed to satisfy business requirements. Policies, processes, techniques, and norms are all part of a standing plan.

While NCERT Solutions Class 12 Business Studies Chapter 4 is useful, students may also refer to other study materials such as notes, important questions and past year’s question papers to prepare for their examination. 

NCERT Solutions Class 12 Business Studies Chapter 4 Planning

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By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 4, students can easily understand the topic, Planning.

Key Features of NCERT Solutions Class 12 Business Studies Chapter 4

NCERT Solutions Class 12 Business Studies Chapter 4 provides a detailed answer to all questions.  Extramarks is the best option for a variety of reasons:  :

• It covers all the chapter end questions along with their comprehensive answers explained in detailed with appropriate examples.
• By laying a foundation and explaining the chapter’s fundamental principles, the answers help in eliminating the student’s doubt questions and confusions.
• All solutions are mentioned in a detailed and easy to understand manner.
• Students can score well through these  NCERT Solutions Class 12 Business Studies Chapter 4 provided by Extramarks.