The top management of Monto Limited is engaged in organisational planning. It does not involve middle level and supervisory level of management .These two levels of Management are neither allowed to deviate from the plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative get added to the process. Q1 Which limitation of planning is reflected in above case? Q2 What remedial step will Monto Limited take to overcome this limitation.
Answers
TYPES OF PLANNING
On the basis of
Question 1.
Reduces the risk of uncertainty: Planning relates to deciding in advance about the tasks to be performed in future. This enables a manager to anticipate changes and devise the way to deal with changes and uncertain events effectively.
Planning promotes innovative ideas: Planning is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.
Avoiding overlapping and wasteful activities: Planning ensures clarity in thought and action and serves as the basis of coordinating the activities and efforts of different individuals and departments. Therefore, by curtailing useless and redundant activities it helps in smooth working of the organisations work is without interruptions. Moreover, it makes detection of inefficiencies easier so that timely corrective measures may be taken to avoid them in future.
Question 2.
Answer:
Objectives: Objectives are the end results of the activities that an organisation seeks to achieve through its existence. All other activities within the organisation are directed towards achieving these objectives. Objectives are based on the mission or philosophy of the organisation. Objectives are determined by top level management. For example, the objectives of a newly started business is to earn 30% profit gn the amount invested in the first year.
Budget: A budget refers to a financial plan that is expressed in numerical terms. For example, the marketing manager prepared an area wise sales target for different products for the forthcoming quarter. It is a type of single use plan.
Explanation:
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