Learn CBSE Business Studies Index Terms for Class 12, Chapter 4 Including Definitions and Meanings
1. Planning – Planning centres around accomplishing objectives. Organisations are set up with a universal purpose in view. Planning makes these objectives explicit and states activities are to be embraced to achieve these objectives. Planning is an essential capacity, and it sets out the base for all functions of management.
In other words, planning is the process of creating a structure in advance regarding the work that needs to be done. It is helpful in defining the goals and objectives that need to be achieved by an individual or organisation. Therefore, it involves a series of steps that are bound logically.
2. Goals – A business goal is the terminus, achievement, focus, or objective of an association that it wants to accomplish for a short period of time or a long period of time. Business goals can take various structures or forms and be persuasive or aspirational. For example, driving an organisation toward a predetermined goal like improved client care.
3. Planning Process – Planning is ascertaining prior to what to do and how to do it. It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence, planning is firmly correlated with discovery and creativity. But the manager would first have to set goals. Planning is an essential step that managers at all levels take. It requires making decisions since it includes selecting a choice from alternative ways of performance.
4. Single-use Plans – As the term suggests, a single-use plan is formed for a short period of time, and after the completion of the project or assignment, this plan is discarded. Since they are formed for a specific reason or a project, situation, or for assignment, they do not have a wider scope. Single-use plans are one-time plans that are not utilised repeatedly. For example, budgets and objectives.
5. Standing Plans – Standing plans are formed for a long period of time. It has a wider scope as standing plans involve the entire organisation under its purview. Standing plans are repetitive and recurring in nature. For example, methods, procedures, and policies.
6. Objectives – Management is accountable for establishing and attaining objectives for the company. It has to deliver a variety of objectives in all operations contemplating the interest of all shareholders, including stakeholders, consumers, the government, and employees. The principal objective of any company must be to use material and human resources to the maximum potential benefit, that is, to meet the financial objectives of a firm, and they are survival, profit, and growth.
7. Strategy – Strategy is a cycle that can permit an organisation to focus its limited assets on the best chances to build sales and accomplish competitive advantages in the market. A business strategy is a clear-cut arrangement of plans, activities, and objectives that traces how a business will contend in a specific market, or markets, with a product or number of products or services.
8. Policies – Business policy characterises the spheres or scope inside which choices can be taken by the subordinates in an organisation. Business policies are the rules created by an organisation to administer its activities. They characterise the cutoff points inside which decisions should be made.
9. Procedures – Procedures are a sequence of steps undertaken to complete a certain activity. It describes the exact manner in which an activity is performed. In other words, procedures are a stipulated sequence of a course of action for handling activities. They are specified in chronological order and are designed to execute policies and achieve objectives. For example, the procedure may be for the purchase of raw material, selection of employees, redressal of grievances, etc., and there may be a procedure for requesting supplies for production.
10. Rules – Rules are specific statements that inform what is to be done. They do not allow any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken. Rules generally refer to the administrative area of the procedure. They serve as guides and do not leave any scope for discretion.
11. Method – A method characterises the manner or way where a specific undertaking or task can be performed. It thinks about one stage of a whole strategy and characterises the steps to be taken to the finishing of the given assignment.
12. Programme – A programme is a unique and transient key undertaking, attempting to accomplish an advantageous change and consolidate a group of related tasks and routine business activities.
13. Budget – A budget is an assessment of income and expenses over a predetermined future time frame and is generally gathered and reconsidered on an occasional premise. Financial planning or budgeting can be made for an individual, a business administration, the government, or for a group of people, or almost anything else that makes and burns through liquid assets.
14. Decisions – A decision is a cycle that is intentionally browsed among a bunch of wanted choices or options to accomplish the desired outcome. Decision-making is viewed as one of the main undertakings of management. The manager assumes an essential part in serving their choices or decisions, as the development and failures of a business association are reliant upon opportune decisions taken. Each administrative decision, like organising, staffing, directing and planning, are all sub-portions of decision-making.
15. Standards – Standards are agreed, documented, harmonised, and repeatable methods of operating. Standards comprise technical guidelines or other specific criteria outlined consistently as a definition, rule or plan. They assist the organisation in making better decisions which increases soundness and effectiveness.
16. Premises – Premises is usually where an individual, organisation, or government conducts its business. Premises is where an organisation owns the land and building and other necessary assets to conduct its business.
17. Assumptions – Assumptions are thoughts or ideas that one attempts to be valid prior to decision-making. Assumptions are likewise made in organisations for fostering a methodology, planning and taking decisions. These guesses are usually normalised as revelation or disclosure of risks and vulnerability.
18. Alternatives – Alternatives are the strategic pathways that can be taken by an organisation at a given point or in the course of business life. Alternatives are centred on three categories that are restructuring within the organisation to make more profits, selling its business at the time of heavy losses, and at the expansion stage in the growth stage.
We hope that the offered Business Studies Index Terms for Class 12 with respect to Chapter 4: Planning will help you.
Related Links:
- Class 12 Business Studies Index Terms – Chapter 1: Nature and Significance of Management
- Class 12 Business Studies Index Terms – Chapter 2: Principles of Management
- Class 12 Business Studies Index Terms – Chapter 3: Business Environment
- Class 12 Business Studies Index Terms – Chapter 5: Organising
- Class 12 Business Studies Index Terms – Chapter 6: Staffing
- Class 12 Business Studies Index Terms – Chapter 7: Directing
- Class 12 Business Studies Index Terms – Chapter 8: Controlling
- Class 12 Business Studies Index Terms Part II Chapter 1: Financial Management
- Class 12 Business Studies Index Terms Part II Chapter 2: Consumer Protection
