Business Studies XII Content
Chapter 3 » Procedures of Planning | Business Studies – XII
Procedures of planning
1. Setting objectives: – objectives are the main part of plan. Setting objectives is the first step of formulating plans, the success or failure of plan depends upon the objectives of the organization. To determine the objectives is the first step and most important procedure of making plan
2. Developing planning premises: – after setting the objectives of the organization planning premises is necessary. It is the second step of formulating plans. Premises are the assumptions of internal and external environment of the organization in which plans are to be implemented. It is related to collect and make analysis of information concerning internal and external environment.
3. Determining alternatives: – after developing planning premises the third step of formulating plan is to determine the alternatives. The process of searching and identifying alternatives is known as determining alternatives. There may be so many alternatives. Reasonable alternatives should be selected among them
4. Evaluating alternatives:- after determining alternatives, each and every alternatives must b evaluated separately. After that, it is determined that which alternative has how much advantage and disadvantages. In other words, plans are evaluated in so many factors like cost factors, risk , benefits, facilities etc
5. Choosing one course of action: – after evaluating alternatives one best alternative must be selected. When all the alternatives are evaluated then all the weaknesses and strength of the alternatives are known. After this, best alternative must be selected. It is the most important step of planning.
6. Formulating detail plan of action: – after choosing one course of action, detailed plan must be formulated. Selecting one course of action is the organized plan. After choosing organizational plan, other departmental plan must be formulated. In other words, basic plan must be expanded into functional areas.
7. Implementation of plan:- Without this step, other procedures of plan remains as a paper work. This step brings all procedures of plan into action.
8. Reviewing the panning process;- the planning procedures is a continuous function up to the attainment of defined objectives. For this purposed, the evaluation of achievement of work according to time is necessary to know about actual performance