OCM 1 Marks Each

Method is an arrangement for carrying out business programmes. Strategy depicts the arrangement of facing competition, policy gives information to fulfill the objectives while method refers to best way of accomplishment of pre-determined objectives.

Planning premises is the second step of planning. After determining objectives, planning assumptions or forecasting has to be made. These assumptions and forecasting are known as premises which has to be clear and precise for success of . planning in business unit.

There are uncertainties in planning because planning is based on assumptions and forecasting which is made for future. Future is uncertain and therefore, assumptions carmot be fully correct. Uncertainties prevail in planning as it is related to future.

Capital expenditure budget, sales budget, production budget, production cost budget, cash budget etc.

The principle of‘look and leap’is adopted when the entire plan is to be evaluated. Step by step proceedings are done after which, appropriate decisions are taken.

The first function of planning is to determine the objectives and last function is to evaluate the plan.

O.R. means Operational Research.

Planning is found in the field of politics, education, social, sports and military.

Programmer is a sequence of activities to be undertaken by a business unit.

Business environment is also keep on changing due to political, economical, social or natural factors and due to tjis reason if changes are to be made in original plan is made then it is known as contingency plan.

Ship making, construction of bridge, packaging etc. are the example of single use plan.

Plan prepared for achievement of special objectives or for special activities is known as single use plan.

Plans that are formulated to obtained the work oriented expected results from departments work groups and individuals of a business units is known as operational plan.

Tactical plans clarify short term objectives so it is remain as goal oriented.

Specialized knowledge and kill are necessary for the formulation of tactical plans.

For the accomplishment of business objectives, short term plans are prepared by middle level of management, it is known as tactical plan.

First function of management is planning and last function is control.

Operational plans are prepared by departmental heads for the implementation of strategic plan.

In planning decisions are taken consciously and on the basis of calculative assumptions. That’s why planning is mental process.

In planning, the precision is kept about the reliability of the information collected and mathematical calculation used for this.

In the field like army and sports strategy are used more.

By keeping future uncertainties into mind, forecasting is done in planning.

Tactics used for implement of pre-decided objectives of planning known as strategy.

For the accomplishment of mission of a business unit, after considering environment, strength and drawback, units prepared long term and short term plan which is known as strategic plan.

When there is repetition of organizational activities and a standard policy are decided for prompt action, it is known as standing plan.

Policy:

• The decisions and strategies that the management decides for accomplishments of objectives are known as policies.
• The type of policy framed by the business unit reflects the idea of efficiency and working style of the business unit.
• Just like an objective, the policy should also be pragmatic and real.