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CSEET · Business Laws and Management · Functions of Management

Which of the following best describes the nature of planning as a function of management?

Planning is a continuous, forward-looking process in which objectives are set and the course of action to achieve them is decided. It is not a one-time exercise, is not confined to top management, and comparing results with standards belongs to controlling.

  1. AIt is a one-time activity completed at the start of a business
  2. BIt is a continuous and forward-looking process that sets objectives and the course of action to reach themCorrect
  3. CIt is concerned only with top management and never with middle or lower levels
  4. DIt is a process of checking actual results against standards

Explanation

Planning looks ahead, decides objectives and the way to achieve them, and must be revised as conditions change, so it is continuous. It is not limited to top management, as every level plans in its own sphere. Comparing actual results with standards is controlling, not planning.

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