CBSE PYQs: Planning - 2025

Answer: (D) 
​Solution: A Budget is defined as a statement of expected results expressed in numerical terms. It is a plan that quantifies future facts and figures. Since Kavi forecasts sales for each school in numbers and uses these numbers to compare actual sales with expected sales, he is using a budget. Furthermore, a budget acts as a control device, making it easier to compare actual figures with expected figures and take subsequent corrective action.
(NCERT Topic Reference: Types of Plans: Budget)

Answer: (A)
​Solution: Planning is considered futuristic as it essentially involves looking ahead and preparing for the future (Assertion A is true). The very purpose of planning is to anticipate future events and conditions so that managerial responses can be developed to meet these future events effectively to the best advantage of an organization (Reason R is true). Since the purpose (R) clearly explains why planning is concerned with the future (A), Reason (R) is the correct explanation of Assertion (A).
(NCERT Topic Reference: Features of Planning: Planning is futuristic)

Answer: (C) 
​Solution: Rules are specific statements that inform exactly what must be done. Statement I is correct because a rule reflects a managerial decision that a certain action must or must not be taken. Statement II is false because rules do not allow for any flexibility or discretion; there is no compromise or change unless a policy decision is taken.
(NCERT Topic Reference: Types of Plans: Rule)

Answer: (C) 
​Solution: The planning process follows a specific order: Setting Objectives, Developing Premises, Identifying alternative courses of action, Evaluating alternative courses, and then Selecting an alternative. The case states that the company has already completed 'developing premises' and 'identifying alternative courses'. The next logical step, before selecting the best plan, is for the board to weigh the pros and cons of each identified alternative, which is the step known as Evaluating alternative courses.
(NCERT Topic Reference: Planning Process: Evaluating alternative courses)

Answer: (D)
​Solution: The last step in the planning process is the Follow-up action, which involves monitoring the plans to ensure they are being implemented and that activities are performed according to schedule. Monitoring the plans is essential to ensure that objectives are ultimately achieved.
(NCERT Topic Reference: Planning Process: Follow-up action)

Q6. Match the type of plan given in Column I with its meaning given in Column II.  (1 Mark)
Choose the correct option from the following :
(A) 1-(iii), 2-(iv), 3-(ii), 4-(i)
(B) 1-(i), 2-(iii), 3-(iv), 4-(ii)
(C) 1-(ii), 2-(i), 3-(iii), 4-(iv)
(D) 1-(iv), 2-(ii), 3-(i), 4-(iii)

Answer: (A)  1 - (iii), 2 - (iv), 3 - (ii), 4 - (i) 
Solution:

• Policy is a general statement that guides thinking or channelizes energies towards a particular direction. (iii)
• Procedure details the exact manner in which any work is to be performed, describing routine steps on how to carry out activities. (iv)
• Programme is a detailed statement about a project that outlines objectives, policies, procedures, rules, tasks, resources, and budget required for implementation. (ii)
• Strategy is a comprehensive plan for accomplishing an organisation's objectives, providing the broad contours of the business. (i)
  (NCERT Topic Reference: Types of Plans)

Answer: (C) 
Solution: Planning does not guarantee success; managers relying on previously successful plans can lead to failure. Planning leads to rigidity, reduces creativity, and may not work in a dynamic environment are all actual limitations of the planning function.
(NCERT Topic Reference: Limitations of Planning)

Answer: (B)
Solution: 
Statement I is false: A single-use plan is developed for a one-time event or project, meaning they are for non-recurring situations. Activities that occur regularly over a period of time are covered by Standing Plans. 
Statement II is true: Policies are general forms of standing plans that specify the organisation's response to a certain situation.
(NCERT Topic Reference: Types of Plans: Single-use and Standing plans)

Answer: 
(i) Planning involves decision-making: Planning necessitates making a choice among various alternative courses of action and activities. If only one goal or one course of action existed, there would be no requirement for planning. Planning, therefore, requires the thorough examination and evaluation of all available alternatives to select the most appropriate one.

(ii) Planning is pervasive: Planning is required throughout the organization, at all levels of management and in all departments. While the depth and focus of planning differ-from overall organizational plans set by top management to day-to-day operational plans set by supervisors-the function itself must be performed everywhere.
(NCERT Topic Reference: Features of Planning)

Answer: 
(i) Method: The method specifies the prescribed ways or manner in which a specific task (which is often one step of a procedure) must be performed, keeping the overall objective in mind. Selecting an appropriate method is crucial as it helps save time, money, and effort while increasing operational efficiency.

(ii) Budget: A budget is a plan that is a statement of expected results expressed in numerical or quantitative terms. It quantifies future facts and figures, such as forecasting sales or projecting the required number of workers. A budget is also vital as a control device, allowing managers to compare actual performance against numerical expectations and take corrective action for deviations.
(NCERT Topic Reference: Types of Plans: Method and Budget)

Answer: 
(i) Planning reduces the risks of uncertainty: Planning requires managers to look ahead, anticipate changes, and predict future trends, thereby enabling them to deal with uncertain events. While changes in the dynamic business environment cannot be entirely eliminated, effective planning allows management to develop appropriate responses in advance.

(ii) Planning facilitates decision making: Planning aids the manager by requiring the identification and evaluation of various alternative courses of action available. The manager evaluates the pros and cons of each alternative to select the most viable option. By setting targets and predicting future conditions, planning provides a rational approach to decision-making.
(NCERT Topic Reference: Importance of Planning)

Answer: 
(i) Planning focuses on achieving objectives: Planning is purposeful because organizations are established with a general purpose in view, and specific goals are set out in the plans. Planning involves setting objectives and formulating action plans to achieve them, making it meaningless unless it contributes to accomplishing predetermined organizational goals.

(ii) Planning is pervasive: Planning is a function that is required at all levels of management-top, middle, and lowest-and in all departments of the organization. Although the scope of planning differs across levels (e.g., top management plans for the whole organization, while supervisors handle day-to-day operational planning), no function or level is exempt from the need for planning.
(NCERT Topic Reference: Features of Planning)

Answer: 
(i) Planning reduces the risks of uncertainty: Planning enables a manager to anticipate changes and look ahead into the future. By deciding tasks beforehand, planning prepares the organization to deal with uncertain events and changes, minimizing risks. Although changes cannot be eliminated, managerial responses can be developed to them.

(ii) Planning facilitates decision-making: Planning involves making a choice from among various alternatives or courses of action. The process requires evaluating each alternative, weighing its pros and cons, and selecting the most feasible and profitable option. By helping set targets and predict future conditions, planning provides the framework for rational decision-making.
(NCERT Topic Reference: Importance of Planning)

Answer: 
(i) Planning is a primary function of management: Planning is recognized as the first function of management because it establishes the basis for all other managerial functions (organizing, staffing, directing, and controlling). All other functions are performed within the framework laid down by the plans. This characteristic is also referred to as the primacy of planning.

(ii) Planning is a mental exercise: Planning is fundamentally an intellectual activity of thinking rather than doing, as it determines the action to be taken in the future. It requires the application of the mind, involving logical, systematic thinking, foresight, intelligent imagination, and sound judgment, rather than relying on guesswork or wishful thinking.
(NCERT Topic Reference: Features of Planning)

Answer: 
(i) Planning reduces overlapping and wasteful activities: Planning coordinates the efforts and activities of different divisions, departments, and individuals within the enterprise. It ensures clarity in action and thought, minimizing confusion and misunderstanding, which helps avoid duplication of work and unnecessary activities. This coordination allows work to be carried out smoothly and efficiently.

(ii) Planning promotes innovative ideas: As the foundational function of management, planning provides an avenue for new ideas to take shape as concrete plans. The process of drawing up future actions guides the management toward challenging activity that leads to business prosperity and growth.
(NCERT Topic Reference: Importance of Planning)

Answer: 
(i) Planning is continuous: Plans are typically prepared for a specific period (e.g., month, quarter, year). Upon the conclusion of that period, new plans must be drawn based on new requirements and changing future conditions. Thus, planning is an ongoing process related to the planning cycle, where one plan is framed, implemented, and followed by the next.

(ii) Planning is futuristic: Planning essentially involves looking ahead and preparing for the future. It is regarded as a forward-looking function that anticipates future events and conditions through the use of forecasting, allowing plans to be drawn up accordingly to meet future events effectively.

Answer: 

(a) Identification of the step of the planning process: The case states that Mefco Ltd. "studied the market and made assumptions about the future regarding the convenience offered by such a service". This process of making assumptions about the future, which is inherently uncertain, is known as Developing Premises.

Concept Applied: The scenario explicitly details market research and assumption setting, aligning perfectly with the definition of Developing Premises.

(b) State the next three steps to be followed by 'Mefco Ltd.' after Developing Premises:

1. Identifying alternative courses of action: Once objectives are set and premises are made, managers must identify all the various routine or innovative ways through which the set objectives can be achieved.

2. Evaluating alternative courses: The pros and cons (positive and negative aspects) of each identified alternative course of action must be weighed against the main objective.This evaluation involves calculating variables such as risks, returns, earnings, and assessing the feasibility and potential consequences of each alternative.

3. Selecting an alternative: This step is the actual point of decision-making, where the best plan must be adopted and implemented. The ideal plan should be the most feasible, profitable, and carry the least negative consequences

(NCERT Topic Reference: Planning Process)

Answer: 
(i) Planning reduces overlapping and wasteful activities: Planning provides the foundation for coordinating the activities and efforts of different divisions, departments, and individuals. Because plans ensure clarity in thought and action, the chances of confusion, misunderstanding, and duplication of efforts are minimized or eliminated. This allows work to proceed smoothly and reduces inefficiencies.

(ii) Planning establishes standards for controlling: The planning process involves setting goals, which then act as the standards against which actual performance is measured. Controlling requires comparing actual results with these standards set during planning to identify any deviations. If there were no established goals or standards from planning, finding and correcting deviations would be impossible, confirming planning as a prerequisite for control.
(NCERT Topic Reference: Importance of Planning)

Answer: 
(i) Planning is continuous: Planning is not a one-time activity; plans are always drawn up for specific durations, such as a month or a year. At the end of that period, managers must develop a new plan based on future conditions and requirements. This sequence of framing, implementing, and following up with another plan establishes planning as a continuous process.

(ii) Planning is futuristic: Planning is fundamentally a forward-looking function as it involves looking ahead and preparing the organization for the future. Its purpose is to meet future events effectively and maximize organizational advantage. This reliance on peeping into and predicting the future makes it intrinsically linked with forecasting.
(NCERT Topic Reference: Features of Planning: Planning is futuristic)

Answer: 
(i) Planning provides directions: By explicitly stating in advance how work is to be done, planning gives a clear direction for action. Clear goals and objectives guide employees, who become aware of what the organization needs to achieve, ensuring that individuals and departments work in a coordinated manner toward the common goals.

(ii) Planning reduces the risks of uncertainty: Planning is an activity that prompts managers to look ahead and anticipate potential changes and uncertain events. Although planning cannot eliminate uncertainty, it allows management to anticipate changes and develop appropriate courses of action to deal with them, minimizing the risk associated with future business operations.
(NCERT Topic Reference: Importance of Planning)

Answer: 
(i) Planning is futuristic: Planning is inherently a forward-looking function that involves predicting the future, analyzing it, and preparing for future conditions. The entire function is based on forecasting, and its fundamental purpose is to enable the organization to meet future events to its best advantage.

(ii) Planning is pervasive: Planning is mandatory at all levels of management-top, middle, and operational-and is required in all departments of the organization. It is not restricted to top management or any single department, although the scope and focus of planning differ significantly across the hierarchy.
(NCERT Topic Reference: Features of Planning)

Answer: 
(i) Planning reduces overlapping and wasteful activities: Planning establishes a coordinated basis for the activities and efforts across different segments of the organization. This clarity in actions helps in avoiding confusion, duplication of work, and misunderstandings. By identifying inefficiencies, planning enables the smooth flow of work and minimizes redundant activities.

(ii) Planning promotes innovative ideas: Since planning is the primary managerial function, new ideas generated by managers can be formalized into concrete plans. This challenging activity guides future actions and is instrumental in achieving growth and prosperity for the business.

Answer: The function of planning is crucial as it offers several benefits to an organisation:

(i) Planning provides directions: Planning establishes goals and objectives clearly in advance, defining how work is to be done. When goals are well-defined, employees are aware of what the organization needs to achieve and what they must do to contribute, enabling individuals and departments to work in coordination. Without planning, employees would work in different directions, making goal achievement difficult.

(ii) Planning promotes innovative ideas: Since planning is the foundational function of management, it encourages managers to develop new ideas that can be shaped into concrete plans. It is considered the most challenging activity for management as it guides all future actions, leading the business toward growth and prosperity.

(iii) Planning reduces the risk of uncertainty: Planning requires managers to look ahead and anticipate changes in the environment. By deciding in advance the tasks to be performed, planning provides a way to deal with future events and uncertain changes. While external events cannot be eliminated entirely, planning helps in anticipating them and developing managerial responses accordingly.
(NCERT Topic Reference: Importance of Planning)

Answer: 

• Objectives: Objectives represent the desired future position that the management seeks to reach. They are defined as the ends which the management seeks to achieve through its operations. Objectives are the starting point of planning, against which actual performance is ultimately measured. Objectives should generally be expressed in specific terms and measurable in quantitative terms, to be achieved within a defined time period.
• Rule: Rules are specific statements that clearly define exactly what is to be done. Rules reflect a managerial decision that a certain action must or must not be taken. They are the simplest types of plans because they do not allow for any flexibility or discretion, meaning there is no compromise unless a policy decision is taken.
• Budget: A budget is a plan that is a statement of expected results expressed entirely in numerical terms, quantifying future facts and figures. For example, a budget might forecast sales for different products or the number of workers required at peak times. Because a budget represents all items in numbers, it also serves as an important control device, making it easier to compare actual figures with expected ones and take corrective action.
  (NCERT Topic Reference: Types of Plans: Objectives, Rule, Budget)

Answer: 
(i) Planning may not work in dynamic environment: The business environment encompasses multiple dimensions (economic, political, legal, social, etc.) and is inherently dynamic, meaning nothing is constant. When the environment changes rapidly, it becomes difficult for planning to accurately assess future trends. Planning cannot foresee everything, and major policy or political changes can upset existing plans, hindering effective planning.

(ii) Planning reduces creativity: Planning is typically conducted by top management, and the rest of the members are usually expected merely to implement these plans. Consequently, middle management and other decision-makers are often not permitted to deviate from the plans or act on their own, thereby limiting their initiative and creativity. Employees tend to carry out orders and think along the established lines, thus reducing innovative contribution.

(iii) Planning does not guarantee success: The success of an enterprise depends not only on drawing up plans but also on their proper implementation. Managers often rely on previously tried and tested successful plans, assuming they will work again, leading to complacency and a false sense of security. Since there are many unknown factors to consider, relying solely on past success through planning may actually lead to failure rather than success.
(NCERT Topic Reference: Limitations of Planning)

Answer: 

• Single-use Plans: A single-use plan is developed for a one-time event or project that is unlikely to be repeated in the future, addressing non-recurring situations. Examples include budgets, programmes, and projects. The duration of such a plan depends on the project type, ranging from a week to a day.
• Standing Plans: A standing plan is designed for activities that occur regularly over a period of time, ensuring the smooth operation of internal processes. Standing plans are usually developed once but are modified as needed to meet recurring business requirements, thus greatly enhancing efficiency in routine decision-making. Examples include policies, procedures, methods, and rules.
• Strategy: A strategy is a comprehensive plan that outlines the broad contours of an organization's business and defines the organization's direction and scope in the long run. A strategy has three dimensions: (i) determining long-term objectives, (ii) adopting a particular course of action, and (iii) allocating the necessary resources to achieve the objective. Strategy formulation requires considering the changes in the economic, political, social, legal, and technological business environment.
• Policy: Policies are general statements used as standing plans that guide thinking or channelize energies toward a particular direction. They serve as guides to managerial action and decisions during the implementation of a strategy. Policies define broad parameters within which a manager may function and allow for the use of discretion in their interpretation and application.

Answer: 
(i) Planning facilitates decision making: Planning involves looking into the future and evaluating various alternative courses of action available to achieve objectives. Managers must assess the pros and cons of each option and select the most viable proposition. By involving the setting of targets and predicting future conditions, planning helps managers to take rational decisions.

(ii) Planning reduces overlapping and wasteful activities: Planning coordinates the activities and efforts across different divisions, departments, and individuals, serving as a basis for coordination. Since planning ensures clarity in thought and action, it helps in avoiding confusion, misunderstanding, and duplication of efforts. Useless or redundant activities are minimized or eliminated, allowing work to be carried out smoothly.

(iii) Planning establishes standards for controlling: Planning involves the necessary first step of setting goals and standards against which actual performance can be measured. By comparing actual performance to these pre-determined goals (standards), managers can determine if objectives have been attained. If deviations are found, corrective action can be taken, which is the core activity of controlling. Thus, planning is a prerequisite for controlling.
(NCERT Topic Reference: Importance of Planning)

Answer: 

• Procedure: Procedures are routine steps detailing the exact manner in which activities are to be carried out. They are specified in a chronological order, detailing steps to be followed in particular circumstances. Procedures are generally meant for insiders to follow and are often used to enforce a specific policy and achieve pre-determined objectives.
• Method: Methods provide the prescribed ways or the manner in which a single task (one step of a procedure) must be performed, keeping the objective in mind. The choice of the proper method can vary depending on the task and helps save time, money, and effort, thus increasing efficiency. For instance, different training methods are selected based on the level of management being trained.
• Programme: A programme is a detailed and comprehensive plan concerning a specific project. It outlines the objectives, related policies, procedures, rules, tasks, and the human and physical resources required to implement the course of action, along with the budget. Programmes include the entire range of activities and detail how the organization's policies will contribute to the overall business plan.

Answer: Four limitations of the planning function of management are:

1. Planning leads to rigidity: Once a well-defined plan with specific goals and a time frame is drawn up, managers may find themselves unable to change it, as they must strictly follow the predetermined course of action. This rigidity can create difficulties when circumstances change, as following a pre-decided plan might not be in the organization's best interest.
2. Planning may not work in a dynamic environment: The business environment (economic, political, legal, social, etc.) is constantly changing. It is difficult to accurately predict future trends, especially if political conditions are unstable or economic policies change frequently. Consequently, planning may become ineffective or encounter obstacles when the external environment is highly dynamic.
3. Planning reduces creativity: Since top management usually performs the planning function, lower levels are often reduced merely to implementing these plans. Managers and decision-makers may not be allowed to deviate from the plans, leading to a reduction in initiative and creativity among the employees, as they often just carry out orders.
4. Planning involves huge costs: The formulation of detailed plans can involve substantial costs in terms of time and money. Costs are incurred in checking the accuracy of facts, conducting scientific calculations, holding boardroom meetings, discussions with experts, and preliminary investigations. Sometimes, the costs incurred may not be justified by the benefits derived from the plans.
   (NCERT Topic Reference: Limitations of Planning)