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Business Studies · 2025 · 6 marks
CBSE 2025 · Region 1 · Set 2 · Q32
(a) Explain the following limitations of 'Planning' function of management: (i) Planning may not work in dynamic environment. (ii) Planning reduces…
(a)
Explain the following limitations of 'Planning'
function of management:
(i)
Planning may not work in dynamic environment.
(ii)
Planning reduces creativity.
(iii)
Planning does not guarantee success.
OR
(b)
Give the meaning of 'Single-use-plans' and 'Standing-
plans'. Explain ‘Strategy’ and ‘Policy’ as types of plans.
Marking-scheme solution
(i)
Planning may not work in a dynamic environment
§ The business environment is dynamic. The organization has
to constantly adapt itself to changes in environment by
making changes in its plans.
§ It becomes difficult to accurately assess future trends in the
environment if economic policies are modified or political
conditions in the country are not stable or there is a natural
calamity etc.
(ii)
Planning reduces creativity
§ Planning is an activity done by the top management. As a
consequence, middle management and other decision makers
are not allowed to deviate from the plans nor are they
permitted to act on their own.
§ As a result, initiative and creativity inherent in them gets lost
or reduced.
(iii)
Planning does not guarantee success
§ A plan needs to be translated into action or it becomes
meaningless. Also, managers have a tendency to rely on
previously tried and tested plans. But a plan that has worked
before may not work again.
§ The false sense of security created by planning may actually
lead to failure instead of success.
Single-use-plans
§ Single-use plans are developed for a one-time event or
project.
§ Such a course of action is not likely to be repeated in future,
i.e., they are for non-recurring situations.
§ These include budgets and programmes.
Standing-plans
§ Standing plans are used for activities that occur regularly
over a period of time.
§ These are designed to ensure that internal operations of an
organisation run smoothly.
§ These include policies, procedures, methods and rules.
Strategy
§ A strategy refers to future decisions defining the
organisation’s direction and scope in the long run.
§ It is a comprehensive plan for accomplishing organisation’s
objectives and involves determining long term objectives,
adopting a particular course of action and allocating
necessary resources.
§ Whenever a strategy is formulated, the business environment
needs to be taken into consideration.
Policy
§ Policy is a general statement that guides thinking and
channelizes energies towards a particular direction. It brings
uniformity in decision making for achievement of
predetermined objectives.
§ It defines the broad parameters within which a manager may
function
§ A manager may use his discretion to interpret and apply a
policy.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.