Gujarat BoardEnglish MediumSTD 12 CommerceOCMPLANNING3 Marks
Question
Explain any four elements or components of planning.
✓
Answer
Components or Elements of Planning:
Objectives :
The main purpose of every business unit is determine and fulfill objectives.
While determining objectives, all the factors affecting business are to be considered.
Objectives must be practical. It should not be over ambitious.
Strategy :
Tactics used for the implement of pre-decided objectives of planning is known as strategy.
Strategy is used in the field like military and sports.
Strategy should be kept confidential from the competitors then only these strategy give guarantee of success to a business unit.
Policy :
Decisions and strategies are decided by the management for fulfillment of objectives is known as policy.
Proper policy given precise image of the business unit and creates good impression in the society.
Policy gives an idea of working style and efficiency of the business unit.
Like objective policy should be practical and real. E.g.
Purchase sales policy on credit, policy of after sale service given to customer etc.
Method or procedure :
Method is an arrangement for carrying out business programmers.
Strategy present the arrangement of facing competition, while policy gives an information to fulfill the objectives while methods refers the best way of fulfillment of pre-determined objectives.
E.g. A business units tries to fulfill the objectives of annual sale on the basis of figures of quarterly sale.
Selection of product for the sales to the customer, put product on counter for display, make dill on computer, packing, payment of amount, delivery of goods etc. in short, method refers to the best way of performing a task.
Rules :
Rules are necessary to fulfill the functions of planning.
Rules decides the procedure and gives the clear understanding and also ensures discipline amongst the employees.
E.g. “No smoking at work place.” Use of mobile during working hours is prohibited while packing good, hand should be washed etc.
Rules are necessary for the fulfillment of pre-determination programme of planning.
Budget:
Budget is used as a tool of control for the fulfillment of business objectives.
Different types of budget like sales budget, cash budget, production budget, capital expenditure budget are prepared.
Budget keeps control over the business activities and make the management more efficient.
Programme :
Programme is a sequence of activities to be undertaken by a business unit.
All the activities of a business unit is done as per programme.
If the work is not done as per programme then it will be difficult to bring co-ordination between activities.
The function of management is not only to see that the work carried out according to programme but also compare it with actual standards.
And if any deviation is found then it is necessary to take corrective steps.
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