Professional Documents
Culture Documents
PRACTICES
PROJECT REPORT
ON
TABLE OF CONTENTS
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3
INTRODUCTION 4
OBJECTIVES 5
POLICIES 6
STRATEGIES 8
PROCEDURE 10
RULES 12
PROGRAMMES 13
SCHEDULES 15
CASE STUDY 15
CONCLUSION 17
BIBLIOGRAPHY 18
1
INTRODUCTION
The term 'plan' may be defined as a course of action determined in advance by the
management. A plan has a time frame, whether it is explicit or implied. It is a commitment to
action and commitment of resources. It is also a package of decisions on intended efforts to
achieve some results. It is a relatively static picture or blueprint of action which is partly a
means of mechanism of planning and partly an end product of the planning process.
A single use plan is one which is specific to particular situations of a non-repetitive nature. It
may not have use for different situations, It becomes obsolete once its purpose is over.
Examples of single use plans are objectives, strategies, projects, programmes, schedules,
budgets and so on.
As against single use plans, standing plans are those which are of a relatively long standing
by nature. They are meant to serve as standing guidelines, criteria and constraints on
managerial decision making and action. A standing plan can be repeatedly used over a period
of time for tackling a range of frequently recurring and related problems and issues. Policies,
procedures , rules and methods are generally categorised as standing plans.
Let us discuss a few single use plans and standing plans in detail
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OBJECTIVES AMAZON
The term 'objectives' may be defined as a planned target of performance or the desired end
result of an activity which one attempts to realise. It provides meaning and purpose to the
organisation. It has definite scope and direction. It is a commitment to a course of action. It is
to be followed by determining the ways and means of achievement. Often, a time frame is
determined for its achievement; in other words objectives may be of a time bound nature.
All organisations have objectives, whether or not they are stated explicitly. However
objectives may differ from organisation to organisation. The objectives of a university differ
from those of a business enterprise. The objectives of a government department differ from
those of a hospital. Objectives may also change over a period of time with respect to a single
organisation.Objectives provide the basis for planning. They are also the focal point for all
managerial functions. They give meaning and a sense of direction to organisational efforts.
They set boundaries in the sphere of operations of the organisation and its relations with the
external environment. They serve as the foundation for the entire management, process of
planning, organising, direction and control. They provide the framework for formulation of
strategies, policies, programmes, procedures and so on. Objectives serve as criteria and
constraints for managerial decision making on acquisition and utilisation of resources.
With the above discussion the importance of objectives may be listed as below.
POLICIES GUIDELINES
Policies are general statements or understandings which guide or channel thinking and action
in decision mafing. They are concerned with administrative action. They serve as a principle
for conduct. Many organisations formulate a wide range of policiesin several areas of their
activity. They include the products to be manufactured, prices to be charged, the markets to
be served, and so on. Policies are also needed on purchasing, quality control, inventory,
depreciation, produce sales promotion and distribution, unemployment and service matters of
employees and workers, on production technology and so on. For example it is the policy of
the company to promptly attend to customer complaints by replacing the defective product,if
it is within three months from the date of sale. In short, policies tend to pre-decide issues and
avoid repeated analysis and give a unifide structure to the organisation. Major policies
covering the entire organisation are formulated by the top management. They are often
translated into derivative policies at the level of middle and subordinate managers. Policies
may be in written form or may take the form of implied, unwritten practices, precedents,
principles, and conventions. It is generally believed that written policies tend to minimise the
scope for confusion and misinterpretation and tend to promote unified thinking for
decision-makingand action purposes. However, there is a danger that written policies may
become useless and theoretical postulates may be divorced from organisational realities. They
may be ignored by managers in their day-to-day work behaviour.
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1. Objectives and Strategies of the Organisation. All policies are framed to facilitate
the achievement of objectives. The objectives and strategies fix the parameters within
which the policies will operate. The policies should be consistent with the
organisational goals and strategies.
2. Organisational Structure. Organisational structure determines the levels of positions
and fixes authority and responsibility of employees. The implementation of policies
will be influenced by the type of organisation structure. A policy will be consistent
with the positions and authority roles in the organisation. Policy determination will
certainly be influenced by the organisational structures.
3. Available Resources. The availability of resources such as human, financial, physical
facilities will influence the formulation of a policy. If a policy implementation requires
more resources that are available in the organisation then it will not be feasible. Rather
the resources will fix the limits beyond which a policy cannot go.
4. Managerial Values. Managers are the persons who are the prime movers of policies.
The ethics and value systems of managers have a direct influence on the formation and
implementation of policies. For example, if managers believe in honesty and
truthfulness then these things will be reflected in various policies framed by them.
5. Social Factors. A number of social factors also have an influence on the policies of the
organisation. If society wants only quality products, does not tolerate exploitation of
consumers, gives importance to pollution control, all these factors will have to be taken
into account while framing policies for the organisation.
6. Political Factors. Political factors have a great influence on the policies of an
organisation. The framework of business is determined by the party in power.
Types of Policies
Every enterprise has a number of policies. Some of the types are discussed as follows:
1. Major Policies. Major policies are those which give a unified direction to an enterprise
and imply a commitment of resources. These policies give shape to an enterprise in the
accomplishment of its purpose. They should also be supportive to the organisational
objectives.
2. Supportive Policies. Besides major policies, there is a need to have supportive policies
also. Supportive policies are meant to help in implementation of major policies. A
concern may have the development of a new product as a major policy, the research to
find out the unfulfilled needs of consumers may be a supportive policy.
3. Minor Policies. The policies which do not influence main objectives of the enterprise
may be called minor policies. These policies may relate to some routine matters of less
importance. A policy may be to hire casual workers in case of emergencies. A manager
may allow workers to go on leave if the workload is less. The policies relating to such
matters may be called minor policies. These policies do give directions but are not of
much significance.
4. Composite Policies. Some concerns have a number of policies or groups of policies.
To increase sales, a concern may follow expansion, taking up similar products,
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following aggressive marketing etc. To achieve one objective a number of policies may
be used, these are composite policies.
Importance of policies
i)They are among the most important standing plans to guide,and direct the future course of
managerial action in specific areas of activity.
ii) They clarify and crystallise the real values and intentions of top management.
iii) They facilitate delegation of authority among the various managerial levels, by defining
the decision-making authority and the consrraints on its exercise.
iv) They contribute to the organisation~evolution as an orderly system of goal-oriented
activity.
v) They facilitate uniformity of action and coordination of effort.
vi) Policies minimise the destruction of decision-making proces
STRATEGIES FLIPKART
The term 'strategy' may be defined as an unified and critical plan of action to achieve an
objective or set of objectives. It is a plan prepared for meeting the challenge posed by the
environmental forces. It addresses the 'how' aspects of achieving an objective.
A strategic plan must accurately state objectives, define the policies which are to be pursued,
underline the assumptions regarding the internal and external forces, and outline the courses
of action and the means of mobilising resources. It must also specify the possible alternative
courses open if the expected conditions change. So development of contingency plans for
handling a range of situational changes is also a strategic action plan.
Importance of Strategies
The importance of strategies has been listed below.
i) Strategies provide directions for the achievement of organisational goals.
ii) They help the organisation in tracing the demands of a difficult situation.
iii) They give meaning to other plans.
iv) They help in relating an organisation to its external environment.
Evaluation of Strategies
The success of organisation will depend upon a number of factors including strategies The
formulation of strategies is an important task of top management. It will be equally important
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to see whether strategies have really benefited the business or not. The following yardsticks
may be employed to see the success or failure of strategies.
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DIFFERENCE BETWEEN OBJECTIVE AND STRATEGIES
PROCEDURE
Procedure provides sequential order to a policy. It describes the steps in which policy matters
will be dealt with. It is more specific than a policy. While policy provides a general guideline
to action, procedure expresses the way that guideline will be followed. “A procedure is a
series of related tasks that make up the chronological sequence and the established way of
performing the work to be accomplished.”
It is a guide to action rather than thinking. It details the exact manner in which certain
activities will be accomplished. It provides a detailed guideline to policy. While policy is a
general guideline to action, procedure provides a step-by-step sequence for accomplishing
policy matters. It describes how the task will be done, who will do it, when will it be done
and what is the time taken to accomplish each step so that end result is achieved in time.
A procedure is, however, less flexible than a policy. Managers can use discretion while
dealing with policy matters but not with procedures. A policy that states all appointments
shall be made through a selection procedure will follow the procedure in order —job
specification, application form, preliminary interview, conducting tests, cross checking,
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formal interview, medical examination, employment decision, job offer.
Since procedure prescribes step-by-step handling of organisational matters, top managers can
delegate routine matters to lower-levels and concentrate on important issues. Once the
procedure is established, it is repeatedly used to deal with similar problems. Appointment
procedure, for example, is followed every time an appointment is made.
In fact, policies are laid by top managers and procedures are determined by managers at
lower levels. A well defined procedure speeds up the managerial work as duplication of work
at various stages is avoided. Procedures cut across the functional areas also.
Various departments are involved in carrying out a procedure that mainly relates to one
department. Though the procedure for production mainly relates to the production
department, it is prescribed in such a way that it requires coordinated effort of all the
departments.
1. They make the work simple. People at various levels follow procedures and perform their
work without disturbing top managers. Top managers can, thus, concentrate on important
activities.
2. They increase organisational efficiency by providing a standard way of performing the
task.
3. Well-defined procedures provide consistency and uniformity of actions.
4. They lay out a definite sequence of activities. There is no duplication of work.
5. They facilitate delegation as there is a defined way of doing the work. Delegation relieves
top managers of routine work and develops the ability and skills of lower-level managers.
6. They define the exact sequence of work and time taken to accomplish each sequence. This
facilitates quick decision-making and control.
7. They help in doing the work fast.
8. They provide consistency and uniformity of actions.
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Limitations of procedures:
1. They are inflexible. They cannot be easily changed.
2. As they are inflexible, they hamper the initiative and creativity of employees
RULES
Rules is a set of actions or directions that must be followed by every member of the
organisation. “Rules are statements that a specific action must or must not be taken in a given
situation.” They are the guide to action in the form of orders and instructions which have to
be followed by employees.
Rules bring discipline in the organisation by promoting and restraining individual actions.
They are enforced rigidly in the organisation. A rule may say – ‘No loitering in the corridors.’
If anybody is found loitering, he will be subject to disciplinary action.
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DIFFERENCE BETWEEN POLICY AND RULE
PROGRAMMES
A programme is a sequence of activities designed to implement policies and accomplish
objectives. It is devised to meet a particular situation. Programme may be taken as a
combination of policies, procedures, rules, budgets, task assignments, etc. developed for the
specific purpose of carrying out a particular course of action. Separate programmes are
prepared for accomplishing different tasks. The same programme may not be used for
achieving other goals. It is a single use plan laid down for new and non-repetitive activities.
In the words of Koontz and O'Donnell, "Programmes are complexes of goals, policies,
procedures, rules, task assignment, steps to be taken, resources to be employed and other
elements necessary to carry out a given course of action." To quote George Terry, "A
programme can be defined as a comprehensive plan that includes future use of different
resources in an integrated pattern and establishes a sequence of required actions and time
schedules for each in order to achieve the standard objectives."
Characteristics of Programmes
The following are the characteristics of programmes:
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1. A programme is a single use comprehensive plan. It is formed to achieve a particular
purpose only. Once the goal is achieved the programme will not be used again.
2. A number of small plans are prepared to formulate a programme. The programme for
increasing sales by 20 percent may require a number of small plans to be formed.
4. It gives a time limit upto which the programune is to be implemented. A strict time
table is fixed for doing a particular task.
Advantages of Programmes
Following are the advantages of programmes:
1. Programmes lay down a course of action to be followed for achieving organisational
goals. The details of actions to be taken and time schedule to be followed are all
decided in advance. This enables smooth implementation of plans.
Limitations of Programmes
1. If the programmes are not carefully framed, there is a danger of their being a failure.
The actions to be taken and the procedures to be followed may be properly selected.
Such lapses at the initial stage will make the programmes ineffective.
3. The major programmes have a number of sub-programmes. All the sub programmes
should be successfully carried out for completing the main programme. Any lapse in
implementing a small programme can endanger the whole exercise.
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SCHEDULES
A schedule is a time table for the work to be undertaken. It specifies the date on which the
task is to start and the date when it is to be completed. In order to keep the schedule realistic,
the maximum and minimum time periods may be specified. In order to preface a schedule,
the elements to be kept in mind are:
(iii) specifying the starting and finishing dates for each activity or task and also for the whole
sequence.
Schedules transform programmes into actions. It is necessary for performing each activity at
the right time. While planning a schedule, the availability of resources, processing time and
delivery schedules should be taken into account. There should also be an allowance for delays
created by factors beyond the control of management.
The term 'Schedule' is defined as a plan of action which focuses on the 'when' aspects of
initiating and completing operations regarding specific jobs. In manufacturing operations,
machines and manpower are to be optionally utilised for production of concerned products
and components have to be systematically planned in advance. For this purpose, schedules
are prepared for starting and completing thewhole operation.
While preparing such a schedule, managers at the operational level take into consideration
several factors like delivery schedules of the completed products/components, the plant
capacity, the machine work loads,alreadycommitted but are pending to be executed,
availability of labour, position regarding availability of materials and other inputs and so on.
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CASE STUDY
Case Study-1 own comp
Two years ago, Mayank obtained a degree in food technology. For some time, he worked in a
company that manufactured bread and biscuits. He was not happy in the company and
decided to have his own bread and biscuits manufacturing unit. For this, he decided the
objectives and the targets, and formulated an action plan to achieve the same.
5 One of his objectives was to earn 50% profits on the amount invested in the first year. It
was decided that raw materials like flour, sugar, salt, etc. will be purchased on two months
7credit. He also decided to follow the steps required for marketing the products through his
own outlets. He appointed Harsh as the Production Manager who decided the exact manner in
which the production activities were to be carried out. Harsh also prepared a statement
showing the requirement of workers in the factory throughout the year. Mayank informed
Harsh about his are a wise sales target for different products, for the forthcoming quarter.
While working on the production table, a penalty of rs 150 per day was announced for not
wearing the helmet, gloves and apron by the workers.
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Quoting lines from the above paragraph, we can identify and explain the different types of
plans discussed.
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.
“One of his objectives was to earn 50% profit on the amount invested in the first year.”
Policy: A policy is a set of general guidelines that help in managerial decision making and
action.
“It was decided that the raw materials like flour, wheat, sugar, etc. will be purchased on two
months' credit.”
Procedure: A procedure contains a series of specific steps to be performed in a chronological
order to carry out the routine activities.
“He also decided to follow the steps required for marketing of the products through his own
outlets.”
Rule: A rule is a specific statement relating to the general norms in terms of Do’s and Dont’s
that guide the behaviour of people. It commands strict obedience and a penalty is likely to be
imposed on its violation.
“While working on the production table, a penalty of Rs. 150 per day was announced for not
wearing helmets, gloves and aprons by the workers.”
Case Study-2
Laxmi Chemicals Ltd., a soap manufacturing company, wanted to increase its market share
from 30% to 55% in the long-run. A recent report submitted by the Research & Development
Department of the company had predicted a growing trend of herbal and organic products. On
the basis of this report, the company decided to diversify into a new variety of soaps with
natural ingredients having benefits and fragrances of Jasmine, Rose, Lavender, Mogra,
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to
promote eco-friendly living in the contemporary life style. The company decided to allocate t
30 crores to achieve the objective.
In the above case study we can identify the type of plan used in Laxmi Chemicals ltd.
Strategy is the type of plan which will help the company to acquire a dominant position in
the market.
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CONCLUSION
Planning is a course of action determined in advance by the management. Plans are of two
types-single use plans and multi-use plans or standing plans. A single use plan is specific to a
particular situation and made for a short term period forexample programmes, budgets,
schedules, progress etc. A Standing plan is enduring and serves as standing guidelines for
decision-making process for example objectives, strategies, policies, procedures etc.
Objectives are goals established to guide the efforts of the company and each of its
components. They are the means for determining policies, procedures, strategies,
programmes, budgets and other plans. They provide the foundation for effective
management. Top management sets a wide range of objectives considering the nature and
functions of the organisation. Strategies are unified and critical plans of action to achieve an
objective or a set of objectives. They provide a basic and integrated frame of reference to
managers. They give direction for the achievement of organisationalgoals. Policies are
general statements or understandings which guide or channel thinking and action on decision
making. They define the area or limits within which decisions are made to achieve
organisational objectives. Policies are of several types like originated policy, appealed policy
implied policy and externally imposed policy. In the process of policy formulation various
concerned aspects and dimensions are discussed thoroughly for the finalisation of the policy.
Procedures are a series of steps established to accomplish a specific project. They indicate
how a policy is to be implemented and carried out. A schedule on the other hand specifies
time limits within which activities are to be completed. It avoids delay and ensures continuity
of operations.
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BIBLIOGRAPHY
Books Referred
● Principles and Practice Management by L.M. Prasad
● Management principles and practice by R.K Sharma , Shashi K. Gupta, Rahul Sharma
[Kalyani Publishers]
● Business Studies for Class XII (Part A) by Subhash dey
Websites Referred
● https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/reading-types-of-pla
ns-and-common-planning-tools/
● https://www.businessmanagementideas.com/policies/policies-meaning-and-types/34
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