Features of planning

Correct answer: D. Planning is a continuous process

The correct answer is that planning is a continuous process. Even after a plan is prepared, managers review results and revise it when market conditions, technology, resources, or policies change. Therefore, treating a plan as an annual activity that can never change is incorrect. Future orientation concerns preparation for the future, whereas this statement is specifically about ongoing review and revision. Exam tip: If a question mentions revising plans according to changing conditions, identify planning as a continuous process.

Correct answer: B. Setting objective and then creating organisational structure on its basis

Setting objective first and then structure shows both primacy and objective focus. The plan is the base for later functions.

Correct answer: A. Because scope and detail of plans change according to level

The direct answer is A: scope and detail change according to organisational level. Pervasiveness means that planning is done at the top, middle and lower levels, but each level has different responsibilities. Top management prepares broad, long-term and strategic plans. Middle managers translate them into departmental plans, while lower managers make detailed operating plans. Therefore all levels plan, but their plans cannot be identical. B is wrong because lower-level managers also plan. C is wrong because planning is shared by managers, not only the owner. D is wrong because departmental planning is essential for implementing organisational goals. Memory cue: same overall direction, different level-specific plans.

Correct answer: A. Continuous process and decision making

Planning is not a single action completed once. It continues as conditions, information and organisational needs change. Managers may have to review an earlier plan, compare new alternatives and select a more suitable course of action. Thus, the example contains both the continuous nature of planning and the decision-making involved in choosing among alternatives.

Option A is correct because abandoning an old option after receiving new information shows an ongoing process, while selecting a new option is a decision. Option B is wrong because planning is future-oriented and purposeful, not purposeless. Option C mentions only partial ideas and does not explain the example fully. Option D is unrelated to planning. The two clues must be considered together.

Correct answer: A. Preparing for the future without assuming it to be completely certain

Planning is made with future objectives in mind and prepares an organisation for likely future conditions. However, change and uncertainty may still arise, so planning does not claim to control the future completely. Option B may appear close, but complete control over future events is not possible. Exam tip: ‘Future-oriented’ means preparation and forecasting, not certainty.

Correct answer: A. Pervasiveness exists but objective focus is weak

Reaching all levels shows pervasiveness. But not linking with goal shows lack of objective focus.

Correct answer: A. It may become weak because rational base is low

Imagination is useful but fact analysis is also necessary. Intellectual process needs a rational base.

Correct answer: A. Revising production plan when estimate of next year's demand changes

The direct answer is A: revising the production plan when next year’s demand estimate changes. “Next year’s demand” requires looking ahead, so it shows future orientation. “Revising” the plan after new information appears shows that planning is continuous. A is therefore the only option containing both features. B concerns recording the past and does not show future preparation or an ongoing planning cycle. C explicitly lacks an objective, whereas planning normally begins with objectives. D rejects alternatives, even though planning requires considering choices and adapting when conditions change. Exam cue: future information plus later modification equals future orientation plus continuity.

Correct answer: A. Linking the objective with work directions

Objective focus means that every activity and instruction in a plan should lead towards the stated objective. Merely writing the goal is not enough; employees must also receive clear work directions. Therefore, the weak aspect is linking the objective with work directions. Using past experience may be helpful, but it does not directly address the lack of direction for employees. Exam tip: Check whether each planned activity is connected to the objective.

Correct answer: A. Analysing data and choosing the best course of action

Data analysis is intellectual process and choosing the best course is decision making. Such combined clues appear in hard questions.

Correct answer: C. Objective focus and continuous process

Linking with goal is objective focus and monthly review is continuity. Separate clues in cases.

Correct answer: A. Future orientation and decision process

Seeing future risk is future orientation and choosing an alternative plan is decision process. Identify both together.

Correct answer: A. Top level makes strategic plan middle level makes departmental plan and supervisor makes daily plan

Planning at all three levels is a strong example of pervasiveness. Type of plan differs by level.

Correct answer: A. Pervasiveness is evident, but planning is not objective-focused

Planning is undertaken at every level of an organisation—top, middle and lower management. This feature is called pervasiveness. However, the basic purpose of planning is to achieve predetermined objectives. Without objectives, plans lack a clear direction and cannot be considered objective-focused. Option B is incorrect because planning at all levels alone does not make it effective; clear objectives are also essential. Exam tip: “All levels” indicates pervasiveness, while “objectives” indicates objective-focused planning.

Correct answer: A. Objective focus future orientation decision process and pervasiveness

Objective indicates goal focus time indicates future alternatives indicate decision and level indicates pervasiveness. Read clues in case questions.

Correct answer: A. Objective focus appears but intellectual and decision processes are weak

Understanding objective is objective focus. Not analysing alternatives weakens intellectual and decision aspects.

Correct answer: A. Planning is an intellectual and decision-making process

Planning requires analysing alternatives and choosing the most suitable course of action to achieve objectives. Therefore, it is an intellectual and decision-making process, not merely an order issued from above. Forecasting in option B may support planning, but it is not the complete feature of planning. Exam tip: When a question refers to choosing the best course from alternatives, identify planning as an intellectual and decision-making process.

Correct answer: A. Planning is goal focused primary pervasive continuous future oriented decision and intellectual process

This conclusion connects all main features in a balanced way. In exams identify features from case clues.

Correct answer: D. Planning is pervasive

The correct answer is that planning is pervasive. Planning is undertaken at every managerial level, although its nature and time horizon may differ. Top managers focus on policies and broad plans, whereas team leaders prepare daily or weekly work plans. Therefore, planning does not occur only at the top level. Exam tip: When a question shows planning at different managerial levels, identify planning as pervasive.

Correct answer: D. Planning is an intellectual process

Studying cost reports and sales trends, analysing information, and making a reasoned choice involve mental effort. Hence, the situation shows that planning is an intellectual process. Planning is also futuristic, but the key clue here is the analysis of data rather than merely thinking about the future. Exam tip: Words such as ‘analysis’, ‘reasoning’, ‘forecasting’, and ‘decision-making’ usually indicate the intellectual nature of planning.

Correct answer: C. Planning is pervasive

Planning in different departments is pervasiveness. The type of plan depends on departmental work.

Correct answer: A. Planning provides objectives and standards for controlling

Planning is called the primary managerial function because it sets objectives, performance standards and expected results in advance. During controlling, actual performance is compared with these predetermined standards, and corrective action is taken if deviations are found. Therefore, option A is correct. Planning does not eliminate controlling; it provides the basis for effective control. Exam tip: Remember that planning gives direction and standards to other managerial functions, especially controlling.

Correct answer: A. Planning is an intellectual process

Planning is an intellectual process because it involves collecting facts, analysing alternatives and making logical decisions. A decision based only on hearsay lacks this intellectual basis. Pervasiveness concerns planning at all organisational levels, primacy concerns its place before other managerial functions, and objective focus concerns achieving goals. Exam tip: Words such as facts, analysis, alternatives and rational decision usually indicate planning as an intellectual process.

Correct answer: D. Planning to increase production capacity to achieve next year's profit target

In option D, “next year” shows the future orientation of planning, while “to achieve the profit target” shows objective focus. Increasing production capacity is a planned action directed towards that stated objective. Option A only records past expenses, so it is not future-oriented. Exam tip: identify both a future time reference and a clearly stated goal.

Correct answer: C. Planning is future oriented

Present decision based on future price estimate is future-oriented planning. The plan prepares for coming conditions.