Different Types of Plan

1 Mark Questions

1. Given the meaning of method as a type of plan. (All India 2014; Delhi 2014) Ans. Method provides the prescribed ways in which work is to be performed considering the objective.
2. Give the meaning of policy as type of plan. (Delhi 2014) or

What is meant by policy as a type of plan? (Delhi 2014; All India 2009) Ans. A policy is a general statement which guides the action and decision of the subordinates in various departments. It provides the basis for interpreting strategy, which is usually stated in general terms.

1. Which type of plan has the least flexibility and why? (HOTS; All India 2014C, 2008)

Ans. Rules are enforced rigidly. No exception or deviations are allowed in rules. With regard to rule, the managers have no scope for discretion.

1. Name the type of plan which is in the form of general statements and

channelise energies towards a particular direction. (HOTS; Delhi 2014c, 2010c)

Ans. Policies are general statements that guide thinking or channelise energies towards a particular direction.

1. Name the type of plan which is time bound and linked with measurable outcome. (HOTS; Delhi 2012) Ans. Objective/Budget.
2. Name the type of plan which provides the broad contours of an organisation's business. (HOTS; All India 2012) Ans. Strategy.

1. Name the type of plan which specifies the steps to carry out different activities in a chronological order.(HOTS; ah India 2010)

Ans. Procedure lays down the routine steps on how to carry out activities. They are specified in a chronological order.

1. Give the difference between policy and procedure. (Delhi 2009)

Ans. Policy is a general statement that is guide to decision-making while procedure specifies the steps on how to carry out activities in a chronological order.

3 Marks Questions

9. Explain 'objectives' as one of the types of plan. (Delhi 2013)

Ans. It is the most important type of plan. These are defined as ends which the management seeks to. achieve by its operations. The objectives are usually set by top management of the organisation and focus on broad and general issues. They define the future state of affairs which the organisation strives to realise. For example, An organisation may have an objective of increasing sales by 10% or earning a reasonable rate of return.

10. Explain 'strategy' as one of the types of plans. (Delhi 2013)

Ans. It refers to future decisions defining the organisation's direction and scope comprehensive plan for accomplishing the organisation's objectives.

The comprehensive plan includes three dimensions:

1. Determining the long-term objectives.
2. Adopting a particular course of action, and
3. Allocating resources necessary to achieve the objectives.

11. Differentiate between policy and rule as types of plan.

Ans. Difference between policy and rule

S.No. Policy Rule

1. Policy is a guide to decision-making. A rule is a guide to human behaviour.
2. It is a general statement which brings uniformity in It is the most specific statement. decision-making.
3. A policy is subjected to interpretation. In other words, Rules are rigid in nature and there is no scope for

it allows discretion during decision-making. any kind of discretion.

12. Differentiate between method and budget as types of plan. (Delhi 2011)

Ans. Difference between method and budget

S.No. Method Budget

1. These are standardised ways or manner by which a These are the statement of expected results

task is performed. expressed in numerical terms'. 24.

1. It is an instrument of planning only.. It is an instrument for both planning and controlling.
2. It is a type of standing plans. It is a type of single use plans.