(a) Explain the following points of importance of planning : (i) Planning establishes standards for controlling (ii) Planning reduces overlapping and wasteful activities (2+2) OR (b) Explain the following types of plans : (i) Objective (ii) Method

Q: (a) Explain the following points of importance of planning : (i) Planning establishes standards for controlling (ii) Planning reduces overlapping and wasteful activities (2+2) OR (b) Explain the following types of plans : (i) Objective (ii) Method

This is an **OR** question — attempt only ONE part, (a) or (b). Each part has two sub-points worth 2 marks each. **(a) Importance of planning:** - **(i) Planning establishes standards for controlling:** Planning sets objectives and lays down the standards/goals against which actual performance is later measured. Without predetermined goals from planning, a manager would have no yardstick to judge whether performance is on track, making the controlling function meaningless. Planning and controlling are thus inseparable — planning provides the benchmark, and controlling compares actual results against it. - **(ii) Planning reduces overlapping and wasteful activities:** Since planning coordinates the activities of different departments and individuals towards common, well-thought-out goals, it minimises duplication of effort and cross-purpose working. Departments work as per an integrated plan rather than in isolation, which avoids wasteful activities and improves overall efficiency. **(b) Types of plans:** - **(i) Objective:** Objectives are the ends or goals that management wants to achieve for the organisation as a whole and for every department/section within it. Being the very first step of planning, objectives give a clear sense of direction — e.g., 'to increase sales by 20% in one year.' - **(ii) Method:** Methods are standardised, prescribed ways of performing a specific task, especially one that is repetitive or routine. They help a manager choose the best way to accomplish work, saving time, effort and cost — e.g., a fixed method for imparting on-the-job training to new recruits.

Planning

Importance of Planning / Types of Plans (OR)

Official Answer

This is an OR question — attempt only ONE part, (a) or (b). Each part has two sub-points worth 2 marks each.

(a) Importance of planning:

(i) Planning establishes standards for controlling: Planning sets objectives and lays down the standards/goals against which actual performance is later measured. Without predetermined goals from planning, a manager would have no yardstick to judge whether performance is on track, making the controlling function meaningless. Planning and controlling are thus inseparable — planning provides the benchmark, and controlling compares actual results against it.
(ii) Planning reduces overlapping and wasteful activities: Since planning coordinates the activities of different departments and individuals towards common, well-thought-out goals, it minimises duplication of effort and cross-purpose working. Departments work as per an integrated plan rather than in isolation, which avoids wasteful activities and improves overall efficiency.

(b) Types of plans:

(i) Objective: Objectives are the ends or goals that management wants to achieve for the organisation as a whole and for every department/section within it. Being the very first step of planning, objectives give a clear sense of direction — e.g., 'to increase sales by 20% in one year.'
(ii) Method: Methods are standardised, prescribed ways of performing a specific task, especially one that is repetitive or routine. They help a manager choose the best way to accomplish work, saving time, effort and cost — e.g., a fixed method for imparting on-the-job training to new recruits.

planningcontrollingstandardsoverlapping activitiescoordinationobjectivemethodtypes of plans

Marking Scheme

12 marks for (i) and 2 marks for (ii) in whichever part, (a) or (b), is attempted — 1 mark for stating the point, 1 mark for adequate explanation/example.
2In (a)(i): credit for linking planning to setting standards/goals used later in controlling.
3In (a)(ii): credit for linking integrated planning to avoidance of duplication/wasteful activity across departments.
4In (b)(i): credit for defining objective as the end/goal and the first step of planning.
5In (b)(ii): credit for defining method as the prescribed way of performing a specific (often repetitive) task.

Hint

For (a), remember planning = 'goals first, then compare' (controlling) and 'one integrated plan, no duplication' (reduces overlapping). For (b), objective = the goal itself; method = the prescribed way to do a routine task.

Quick Oral Answer

Planning sets the goals used later to check performance in controlling, and it reduces overlapping by coordinating all departments under one integrated plan; objective is the end to be achieved, while method is the prescribed way of doing a routine task.

Analysis & Explanation

Both parts test core Planning concepts but from different angles — part (a) tests planning's importance/benefits, part (b) tests the hierarchy of plans (single-use and standing plans).

Concept (a): Planning is often called the primary function of management because it precedes and enables controlling — you cannot control what has not first been planned for.

Concept (b): An objective is the end/goal that management wants to achieve for the organisation — it is the starting point of planning, not a single-use plan. Plans are classified as single-use plans (one-time plans such as a budget or programme) and standing plans (policy, procedure, method and rule) that are used repeatedly. In order from the broadest to the most specific, the types of plans are: Objective, Strategy, Policy, Procedure, Method, Rule, Budget and Programme. Method is a standing plan — the prescribed, standardised way of performing a specific, repetitive task, more specific than a procedure.

Exam trap: In part (a)(ii), students often confuse 'reduces overlapping' with 'facilitates coordination' — while related, the question specifically wants the overlapping/wasteful-activity angle. In part (b), 'method' is frequently confused with 'procedure' — a procedure is a sequence of steps for a task, while a method is the specific way of performing one step within that sequence.

Common Mistakes

1Explaining 'reduces overlapping' as simply 'coordination' without linking it to avoidance of duplicate/wasteful work across departments.
2Confusing 'method' with 'procedure' — a procedure is a sequence of steps, a method is the specific way of carrying out one step.
3Writing generic definitions of planning instead of specifically explaining the two named points/types asked.

Interesting Facts

NCERT lists eight points of importance of planning, including 'provides direction', 'reduces risk of uncertainty', and 'promotes innovative ideas', of which this question tests two.

Plans are broadly classified into single-use plans (objective, budget, programme) and standing plans (policy, procedure, method, rule) based on how repeatedly they are used.

Planning is called a 'primary' or 'pervasive' function because every other management function — organising, staffing, directing, and controlling — is guided by what has already been planned.

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Frequently Asked Questions

Why is planning called the basis of controlling?

Controlling involves comparing actual performance against predetermined standards and correcting deviations. Since planning is what sets those standards/goals in the first place, controlling cannot function without planning — the two are inseparable.

Is 'method' the same as 'procedure' in types of plans?

No. A procedure lays down a chronological sequence of steps to perform a task, while a method is the specific, standardised way of carrying out one particular step within that sequence.