Explain the following as types of plans :
(i) Objectives
(ii) Policy
(iii) Programme
(i) Objectives
(ii) Policy
(iii) Programme
Solution and Explanation
Explanation of Types of Plans
Planning involves setting objectives and deciding in advance the appropriate course of action to achieve them. The following are different types of plans:
(i) Objectives:
Objectives are the end results which an organisation aims to achieve. They are specific and measurable goals set by top management. All other planning activities revolve around achieving these objectives.
Example: To increase sales by 20% in the next financial year.
(ii) Policy:
Policy is a general guideline that helps in decision-making. It defines the boundaries within which decisions can be made and ensures consistency in action. Policies are framed by the top management but implemented at all levels.
Example: A company policy of “no credit sales” to manage cash flow.
(iii) Programme:
Programme is a detailed plan of action for a specific activity. It includes objectives, policies, procedures, rules, and budgets to implement a particular course of action. Programmes are more comprehensive and task-oriented.
Example: Launching a new product involves a programme including market research, advertising, production, and sales promotion.
Conclusion: Objectives, policies, and programmes are essential components of planning that guide organisational efforts towards desired outcomes.
Top Questions on Planning
Nishi had gone to a grocery store to make routine purchases. On reaching home, as she took out Binx tomato chips packet from the bag to give it to her son, she felt that it was underweight. She checked its weight on the kitchen weighing scale and found that it weighed 60 grams whereas the label on the chips packet mentioned the weight of the packet as 100 grams. She approached the manufacturer and complained about it. The manufacturer offered her a gift hamper and requested her not to disclose this to anyone. Nishi refused to accept the gift hamper and took the issue to a redressal agency.
- (a) Explain any four points of importance of ‘Planning’ function of management.
OR
(b) Explain the steps in the process of ‘Organising’ function of management. - (a) Explain any four characteristics of planning.
OR
(b) Explain any four points of importance of decentralisation. - ‘Leno’ is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10% and profits by 20% in its Platinum Jubilee year. The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period. Identify and explain two types of plans discussed in the above case.
- ‘Leno’ is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10 percent and profits by 20 percent in its Platinum Jubilee year. The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period.
Identify and explain two types of plans discussed in the above case.