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Class 12 Business Administration Notes · GSEB

Definition and Characteristics of Planning

Definition and Characteristics of Planning — understand planning as future forethought in the present and master its eleven characteristics. GSEB Class 12 Commerce notes with definition cards, feature cards and a decision-focused summary.

Last updated: 23 Oct 2026

Notes

Planning — Forecasting the Future in the Present

Notes — the idea in three lines

  • Planning is future forethought in the present: it fixes what, who, when, how and to what extent before work begins.
  • It is an intellectual process — think, choose, then act.
  • Bill Goetz: “Task of planning is choosing.” George R. Terry: assumptions → policy → stages → method.
Planning in one lineSay it before you flip
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Collect the facts for the work ahead, think them through in advance and decide how the work will be done. Planning is an intellectual process to achieve a goal.
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Bill GoetzSay it before you flip
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George R. TerrySay it before you flip
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“Function of planning means, assumption for results, policy to follow function, stages and to decide the method to be followed.”
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Future forethoughtSay it before you flip
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Planning evaluates the future at present and accordingly arranges for it.
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Make a Prediction

A firm prepares a five-year sales forecast. Is that planning on its own?

TrapForecasting is an input to planning, not a synonym — planning also selects and commits.
RecallWhat is planning? Answer it from the three note lines, not from a paragraph.

Eleven Characteristics of Planning

Notes — four clusters

  • What it is: · primary function · conscious and mental.
  • How it behaves: flexible · precise · forecasting-based.
  • What it handles: alternatives · future · continuous.
  • Why it exists: objective-oriented · decision process.
Universal processSay it before you flip
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Every field plans: business, politics, education, religion and social life.
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Primary functionSay it before you flip
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Organising, staffing, directing and controlling follow it.
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Conscious and mental processSay it before you flip
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Decisions are taken consciously, on the basis of calculative assumptions.
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FlexibilitySay it before you flip
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Plans must change with time, circumstances and situations. It is not a static element.
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PreciseSay it before you flip
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Statistical data and collected information must be perfect and precise.
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Forecasting is essentialSay it before you flip
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Forecasting considers future uncertainties, so forecasting and planning are the first function of management.
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List of alternativesSay it before you flip
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Many routes are listed — advertising, price cuts, training, offers — then the best is selected.
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Concerned with futureSay it before you flip
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Continuous processSay it before you flip
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It begins with the establishment of the organisation and continues till the end.
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Objective oriented activitySay it before you flip
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Future targets are decided from the objectives; pragmatic targets make them easy to achieve.
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Requires decision processSay it before you flip
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Alternatives are considered, assumptions are made and the best alternative is selected.
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Make a Prediction

Which characteristic is the precondition for planning?

Trap“Primary function” is not “first step” — planning is the first function; determining objectives is the first step.
RecallWhat is planning? Explain its characteristics — answer in the four clusters, then expand only what the question asks.

Key Takeaways

  • Planning is future forethought in the present.
  • It fixes what, who, when, how and to what extent before work starts.
  • It is an intellectual process: think, choose, then act.
  • Goetz calls it choosing; Terry runs assumptions, policy, stages and method.
  • Eleven characteristics run from universal process to decision process.

Exam Questions

Exam Questions

Answer in the marks band shown. Try before you reveal.

6 questions
1
What is planning.
2 marks
2
“Planning should be flexible.” Why?
2 marks
3
“Planning is primary function of management.” Explain.
2 marks