Importance of planning

Correct answer: B. Less wastage and more coordination

The governing concept is that planning clarifies work, allocates responsibilities and links the activities of different groups. When each team knows its distinct task, unnecessary duplication and careless use of time or materials can be reduced. When those tasks are connected to a common plan, teams can schedule their work in the proper sequence and support one another. Therefore, less wastage and more coordination are obtained together, so option B is correct. Option A reverses the effect of planning. Option C is wrong because planning can reduce uncertainty but cannot guarantee that every risk disappears. Option D is also wrong because planning provides a basis for control rather than ending it.

Correct answer: B. Adopting a new method after small testing

The governing concept is that planning encourages new ideas while reducing uncertainty through examination, trial and preparation. A new method represents innovation because the organisation is not merely repeating an established practice. Testing that method on a small scale provides evidence about its cost, feasibility and likely results before full implementation. This limits the possible loss if the idea fails, so option B correctly combines innovation with risk reduction. Option A has no innovation and provides no safeguard. Option C lacks a clear objective and may increase waste. Option D removes standards, making performance and risk harder to judge. Planning reduces risk; it never promises complete safety.

Correct answer: B. Helping in controlling

The governing concept is the relationship between planning and controlling. A deadline in a plan creates a standard or expected time, but control requires more than setting a standard. Actual progress must be measured and compared with the planned deadline; otherwise the manager cannot identify delay, analyse its cause or take corrective action. Thus the planning benefit of helping in controlling remains incomplete, making option B correct. Option A is impossible because planning cannot guarantee removal of all risk. Option C is not a purpose of planning, and option D is an unrelated and harmful action. Measurement converts a planned target into a usable basis for control.

Correct answer: B. Common direction and coordination

The governing concept is unity of direction through common objectives. Assigning separate duties may clarify responsibility and can reduce duplication, but departments also need a shared result toward which their activities are directed. Without that common objective, one department may pursue a target that conflicts with another department’s work. Communication, sequencing and cooperation then become weaker. Therefore, common direction and coordination is the benefit that suffers, so option B is correct. Option A is too absolute because separate work does not remove all wastage. Option C is wrong because planning only reduces uncertainty. Option D is wrong because no plan guarantees profit. A plan is effective when individual tasks contribute to an integrated organisational objective.

Correct answer: A. Unnecessary activities will be easily identified

The governing concept is purposeful planning and the economical use of organisational resources. When the purpose of each activity is written clearly, managers can ask whether that activity contributes to a stated objective. Activities that have no useful connection to any objective can be removed, combined or redesigned. This prevents needless use of labour, time, materials and money, so option A is correct. Option B describes repetition, which normally increases wastage. Option C is the opposite of a written purpose, because objectives become more visible. Option D is also incorrect: clear objectives improve decision-making by providing a basis for selecting relevant actions. Planning does not eliminate every cost, but it helps direct resources toward necessary work.

Correct answer: A. It gave a base for review and correction

The governing concept is that planning provides a benchmark and can be revised when conditions differ from expectations. A demand forecast is an assumption used while preparing a plan, not a certainty about the future. When actual demand shows that the forecast was wrong, the organisation can compare the original target with the new information, identify the gap and revise its target or actions. Therefore, option A correctly explains planning's usefulness. Option B is false because planning cannot control every future event. Option C is too absolute; review may limit losses but cannot stop all of them. Option D is the opposite of planning, since objectives remain necessary for comparison and correction.

Correct answer: A. Innovation and reduction in wastage

The governing concept is that planning can promote innovation while improving efficiency. A digital process is a new or improved method of performing work, so its adoption represents innovation. If it uses fewer resources, reduces paper, shortens processing time or avoids unnecessary inputs, it also reduces wastage. The two clues therefore support option A. Option B is incorrect because a new process may still face technical, financial or operational risks; planning does not make risk zero. Options C and D are also contrary to sound planning, which requires clear objectives and useful standards. The benefit is identified by reading both parts of the case together, not by treating digitalisation as an automatic guarantee of success.

Correct answer: A. Innovation and better decision

The governing concept is that planning encourages creative alternatives and improves the quality of managerial decisions. The phrase “new method” signals innovation: the organisation is considering a different way to achieve its objective. “Alternative testing” signals evaluation before final selection; managers can compare feasibility, cost, likely results and possible problems rather than choosing blindly. Together, these clues support option A, innovation and better decision-making. Option B is wrong because alternatives are assessed in relation to objectives, not by removing them. Option C has no logical connection to testing a method. Option D is meaningless in this context; planning prepares for the future rather than erasing it. The answer must combine both clues instead of selecting a benefit from only one word.