What are the types of plans class 12 business studies

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Business Studies class 12 Notes on What are the types of plans ? takshilalearning.com/what-are-the-types-of-plans/ June 18, 2018

Business studies class 12 notes on What are the types of plans ? In this article, we cover Business Studies Class 12 notes on the types of plans based on CBSE Business Studies Class 12 that is easy to understand and help you to score extraordinary marks in your Business Studies Class 12 examinations.

Plan To achieve the specific results, a particular course of action is prepared to meet the commitments. The plan is a document that is outlined to meet the objective. The number of plans is prepared for different organizational goals. Various derivative plans are made which are all bound together under the single plan. For example- To start a new factory, you need to prepare the different plan for the different task.

Plans are classified into two categories Standing Plan/ Repeat use plans These plans are made for long-term use. These plans are made for the actions that are recurring in nature. It is a kind of guideline of actions that need to be followed from time to time. These plans include objective, policies, procedures, methods, strategies, and rules. The plans are used over and over again and can be altered with organizational need. For example- business plan 1/6


Features of the standing plan Recurring in nature Long-term goals Informed decisions Developed once can be modified later Based on main organization objective

Single-use Plan These plans are for single use and cannot be used again. These plans are made to achieve a particular goal. They are specially designed to deal with the special situations and to meet the short-term challenges. These plans include budget and program. For example- an outline of the advertisement campaign Features Short-term goal Non-recurring in nature Based on standing plans for the organization Browse the related video

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Types of Plan

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1 Objective The base of planning is objective which represents end towards which all the organizational activities are directed. “Objective are the goals, aims, or purpose that organizations wish to achieve over varying periods of time” Mc Farland Example- to increase sales revenue by 10% Features Measurable in nature. It can be for the long term or short term. It can be single or multiple. It must be achievable or feasible. Result oriented Clear and specific All the activities are guided towards the objective.

2 Strategy Originally strategy was used in a military action plan. Now strategies are used in business plans. It is an imperative and comprehensive plan designed to achieve the organizational objective. “ The determination of basic long-term goals and objectives of an enterprise and the adoption of the course of action and the allocation of resources necessary to carry out these goals” Chandler Example- techniques for sale promotion Features To determine long-term objective. It is designed to achieve the specific objective. 3/6


It is consistent and directs future goals. 3 Policies Policies are designed for all levels of management. It is made under limited guidelines for unified performance “A policy is verbal, written, or implied, overall guide setting up boundaries that supply general limits and direction in which managerial action takes place” Terry Example – no credit sale of a product X Features Design to implement the strategy Instructions and guidelines to be followed. Based on objective 4 Procedures It is a sequence of steps that need to be followed by management for achieving future goals. They specify the series of activities that need to be performed to accomplish a particular goal. “Procedure prescribes the manner or methods through which work is to be performed.” Allen Example- the procedure to be followed for school admission. Features Series of the task to carry different activities of a department. Goal oriented Chronological order. 5 Rules Rules are special actions need to be followed strictly by the management. “A rule requires that a specific and definite action with respect to a situation” Koontz O Donnell Example- no smoking in premises

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Features Specific in nature Involve punishment for non -compliance. Code of conduct Rigid and compulsive 6 Programmes It is the combination of Goals, Policies, Procedures, and rules to achieve the special objective. “Programme is a mixture of procedures, policies, rules, assigned works and elements necessary for operating the group of activities smoothly” Koontz O Donnell Example- development of a product Features Enhances systematic working. Designed for the definite objective. Design for effective use of resources 7 Budget It is the monetary expression for the business plan that needs to be followed in future. with the help of budget, the cost is controlled. “A budget is a financial statement and quantitative statement prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective.” Institute of Cost and work accountants, London Feature Monitor the cost and expenditure. Based on past figures and future possibilities. Related articles Sales Promotion Technique What is Demonetization? 5/6


Concept of Directing

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