 The learners continuing our discussion of unit 4 that is on planning the part 3 of this unit. Here we shall take up the remaining 2 learning objectives of this unit. So, what are these 2 learning objectives? First we shall analyze the limitations of planning that what are the limitations of planning. We have discussed about the features of planning that is very primary right it is the logically precedes all other managerial functions without planning we do not know where are going right without planning we will not be able to control our activities, but despite having all these planning has got certain limitations also and we do not have any other way right we will have to coexist with the limitations and we will have to move forward. Then we shall discuss the different terms used in the planning process. First the first learning objectives limitations of planning after listening to my discussion my presentation and going to the unit you should be in a position to understand that what are the limitations of planning. First limitation is difficulty in accurate forecasting in part 2 of this presentation I gave you one example that how difficult planning is how difficult forecasting is I told you that forecasting is like trying to drive a car blindfolded following the instruction of a person who is sitting next to you and he is not looking at the front he is looking at the backside mirror in which the front is getting reflected and you are driving in the car. Forecasting is that difficult because we plan for the future and future is highly uncertain we do not know what is going to happen in future could we think of COVID-19 the situation that has arising today. So, 2 years 3 years back everything was normal now that we are talking about abnormal situation we are talking about new normal situation like that. So, future is very very uncertain. So, difficulty in accurate forecasting that is an important very strong limitation of planning. Then the first changing environment the environment is changing very fast. My dear learners though it is not there in the you need, but there is an acronym called FUCA, V-U-C-A, V for volatile, U for uncertain, C for complex, A for ambiguous. So, we are living in a FUCA environment volatile environment we do not know what is going to happen last 2 decades because of the advent of mobile you know the kind of changes that we all are experiencing it is volatile. We do not know what is going to happen uncertain and it is highly complex and ambiguous ambiguous means which ambiguous full with ambiguity not clear. So, environment is changing very fast. Third one is what rigid organizational policies environment is changing very fast, but the organizations have got rigid policies they have got time bound policies. And planning demands that we need to be flexible, but the organizations have got their own bureaucratic system they cannot adapt to the changing requirements fast. So, that is one aspect which planning cannot take care of. Then many times we do not have the accurate information planning is based on the planning premises I told you in the first part of the video. So, there we stated that planning is based on premises and premises are drawn based on accurate information, but many times we do not have the accurate information. So, when we are not having the accurate information our premises are going to be wrong when premises are going to be wrong planning also will be wrong and then time and cost factor without planning we will not be able to move ahead, but in order to plan effectively we will have to invest in our time we will have to spend money on plan development of planning premises on development of the planning processes. So, planning involves high degree high amount of cost as well as time. So, basically they are learners these are limitations of planning, difficulty in accurate forecasting, fast changing environment, rigid organizational policies in accurate information time and cost factors. Then we shall discuss the second learning objective of this unit that is that what are the different types of plans and terms used in planning process. You see there is a hierarchy say an organization has got a vision, mission, objectives, goals, purpose these are at the top which will guide the entire activities of an organization. So, objectives that is the starting point vision, mission, goal right we are using all these terms in an interchangeable manner. So, first of all we will have to be clear about that and that itself is a word term which is used in planning process. Then the second one is strategies, strategies is like you know we all play chess as a game. So, while playing chess we have got two parties is not it me and my opponent. So, I shall plan a series of moves that first I shall move the queen then I shall go for horse right my opponent also will anticipate my moves and accordingly my opponent also will play the moves. So, it is like the game goes on. So, strategies also an organization has to adopt strategies based on what could be the competitors actions that if they go for that we shall go for this. So, strategy is a long term plan and in short we can also say that by strategy we mean a game plan based on competitive actions. Policies is are mostly internal within the organization. Suppose in our organization we shall always go for promotion we shall always encourage our employees to get promoted. Another organization might take a policy that if we always go for promoting our from within from our own employees only that organization will not be having the new blood. So, we shall bring in new employees also from other organizations. So, that is what that is a policies there could be procedure within an organization. Suppose budget first of all the budget will have to be prepared then the budget committee will have to approve it then the budget will be passed and based on that only the function financial sanctions will be made. This is what this is a procedure if we go to a bank to encase a sale. So, in order to encase the sale also we will have to go by a procedure. So, procedure is also an example of likewise programs say advertising program we have cost management program we have cost reduction program we may have inventory management program we may have budget the statement of expected statement of income as well as expense research over a period of time. See all these you see the scope purpose focus level of management will differ. In case of objective it will be top management they will be more concerned about the objectives. But whereas, in case of a procedure the bottom level management will be more concerned. So, that is why these can be placed in a hierarchy of plans. The top management will be mostly concerned about objectives and objectives based on the objectives. The strategies will be deployed internal policies will be adopted and based on those policies and strategies the procedures and the programs will be drawn and based on those procedures programs suppose budget will be formulated and we can talk about rules also. Rules means specific action or no action. Rules also can be considered as a lower level plan. So, these are all different terms which we all use in planning process. So, with this we have come to the end of our planning module. So, we have discussed that planning is very important planning has got certain premises there are different types of plans there are different words in different terms use in the planning process and the implications of all these things will vary from organization to organization from function to function from level to level in an organization. Thank you.