OCM 2 Marks Each

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.

Primary function:
Planning is the primary function of management. Management starts with planning.
Other functions of management like organization, staffing directing, controlling are implemented on the basis of planning.

Flexibility:

• Although planning is done so that tasks take place as per planned method, still planning holds a good amount of flexibility.
• During the execution of planned steps the business may experience certain external factors. These factors may disturb the planned process. Hence, the unit may have to make necessary changes as per time, circumstances and situations.
• Thus, planning is dynamic and flexibility is the precondition for planning.

Formulation and evaluation of subsidiary plan:

• Over and above the main plan, different projects or alternatives have to be considered as per basic plan or in support of basic plan. These plans are known as subsidiary/derivative plan.
  For example, a car manufacturing company is trying to make a decision to make tyres for its cars. On the other hand, it is also thinking to buy them rather than manufacturing. Such an alternative is considered subsidiary plan.
• Even the subsidiary plan is evaluated to assess that it does not obstruct the basic plan in future.

Objectives, strategy, policy, methods, rules, budget and programmers are the elements of planning. At the time of making plan, many supporting plans, programmers are prepared which are known as elements of planning.

Strategy:

• A plan of action designed to achieve a pre-decided long-term or overall aim is called a strategy.
• Strategy formation helps the business unit to be capable enough to face the competition or to survive against the other factors.
• Strategy should be kept confidential from the competitors.
• A well-defined strategy can surely lead to success.

To collect the information of business activities, pre-consideration of the activities and make plan how these activities are to be performed is known as planning.

A budget prepared who covers all the sectional budgets of a business units is known as final or master budget.

Advice of experts are needed for planning and for that advice high fees are to be paid. In addition to this, more time and money are used . that why planning is an expensive process.

Determination of objectives means selection of proper objective from the different objectives accomplish in the future. Objectives must be practical and real.

Programme is a sequence of activities to be undertaken by a business unit-as per planning.

Rules give clear understanding and decide the procedure of doing planning. It ensures discipline among employees. Rules make accomplishment of objectives and supervision easy.

Decisions and strategies decided by management for accomplishment of objectives is known as policy.

Contrivance used for the accomplishment of pre-decided objectives of planning is known as strategy.

Objectives, Strategy, Policy, Method/procedure, Rules, Budget and Programme

A plan designed to take account of a possible future event or circumstance is called a contingency plan. Contingency plan is a new plan made if there are changes that occur due to political, economic, social or natural factors.

Single use plan is a plan made for examples. achieving special objectives. It is applied to activities which do not recur. For example, it is made for activities like construction of house or office, packaging, printing of office banners, etc.

Departmental heads build the operational plans.

Operational plans are the specific result expected plans from the departments, work groups and individuals.

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

Tactical plans are short term plans prepared by middle level of management for the accomplishment of business objectives.

Standing plan represent guideline for decisions in repetitive situation hence it can be used repeatedly. When there is repetition of organizational activities and’a standard policy are decided for prompt action, it is known as standing plan.

Standing plan, Strategic plan, Tactical plan, Operational plan, Single use plan and Contingency plan are important types of plans.

Different alternatives are to be considered as per basic plan or in support of basic plan. These plans are known as subsidiary plan.

Business unit prepares an ideal plan as a model with the help of Operation Research.

Mathematical and statistical methods as well as management tools and techniques are used for evaluation of alternatives.

Planning becomes irrelevant for an organization when the assumptions on the basis of which planning is done changes, circumstances or factors affecting business unit changes, and time taken for implementation increases.

Planning is not a full proof key to success because plannihg is based on assumptions and forecasting which is made’ for future. Future is not certain and thus, assumptions are not fully correct.

Planning is known as expensive process because experts have to be engaged for planning function. These experts charge high fees. Moreover, framing of plan requires large amount of time, energy and money making it an expensive process.

Uncertain future, Expensive process, Time consuming, Planning is irrelevant, Tends towards rigidity, Uncertainty of external factors, Incomplete information, Restrictions on employees creativity, and Use of faulty method.

Wastage of resource can be avoided, Planning leads to precision, Smoothness in other managerial functions, and Effective control becomes possible.

Planning has to be precise – because planning is a process for the future. Since, future is uncertain, the planning is to be done precisely and minutely.

Planning is said to be a primary function because management starts with planning. All other functions of management like organization, staffing, directing, controlling are implemented on the basis of planning. Hence

Universal process, Primary function, Conscious and mental process, Flexibility, Precise, Forecasting is essential, List of alternatives, Concerned with future, Continuous process, Objective oriented activity and Requires decision process.

Bill Goentz

Function of planning means, assumptions for results, policy to follow function, stages and to decide the method to be followed.

The function of management is to see whether the work done as per decided programme or not and for that it will be compared with pre-decided standards. If any deviation are there then corrective steps are taken.

Rule are necessary to accomplish the functions of planning and it ensure discipline among the employees. Due to this achievement of objectives become easy.

Policy provide the information about how the objectives are accomplished, while methods refers to the best way of accomplished of pre-determined objectives.

Objectives of a business unit must be real and not more ambitions.

At the time consideration optional plan, mathematical and statistical methods are used so it is call mental process.

For planning if proper classification of directly or indirectly collected information and then proper analysis and interpretation is done and if on that basis forecasting is done then proper and true result of planning is achieved in future.

Employees has work creativity but they cannot desirable change in implementation of planning so their creativity put in hurdle.

If the collected information for planning is unclear or incomplete then desirable result cannot be obtained.

Planning is a programme of future activities. If any adverse situation occurs, managers or employees do not take the risk of changing from the plan and they continued with original planning. So planning tends towards rigidity.

In planning for the accomplishment of the objectives, pre-thinking and assumption of different alternatives are made. And after that best option is selected and proper decision are taken. So for this decision process is necessary.

Planning is made to achieve pre-determined objective of the business. Management decides future targets as per objectives of business. Thus planning is an objective oriented activity.

Planning is seen in every field like business, politics, education, religion, social, politics and sports filed. So it is considered as universal process.