Question

(a) State any four characteristics of planning.
OR
(b) Explain the following types of plans:
(i) Policy
(ii) Budget

Hint:

Planning lays the foundation for all managerial activities and prepares organisations for the future.

Answer 1

(a) Characteristics of Planning:
1. Objective-Oriented:
Planning commences with defining objectives and establishes methods to achieve them, guiding future actions. All business plans are goal-driven.
Example: A company aims to increase market share by 10% within one year.
2. Primary Management Function:
Planning is the initial managerial task, preceding organizing, staffing, directing, and controlling. Effective execution of other functions depends on prior planning.
3. Ubiquitous Function:
Planning is essential at all management levels and within all organizational departments. Strategic plans are at the top, tactical at the middle, and operational at the lower levels.
4. Forward-Looking:
Planning anticipates future events through forecasting. Successful planning requires envisioning future scenarios.
OR
(b) Types of Plans:
(i) Policy:
A policy provides general guidelines for decision-making, defining the scope within which choices are made. Policies reflect organizational values and ensure consistent managerial conduct.
Example: A company policy allows for the replacement of any defective product within 7 days.
(ii) Budget:
A budget is a quantitatively expressed plan, which can be financial or relate to resources like labor hours or production units. Budgets are used for resource allocation and performance evaluation.
Example: A quarterly marketing budget of Rs. 5 lakh.
Final Answer:
(a) Characteristics: Focus on objectives, Primary function, Pervasive, Futuristic
(b) Types: Policy and Budget