01 A business states that employees will be promoted on the basis of merit and performance. Which plan does this show?
Answer and explanation
Correct answer: A. Policy
Explanation: The governing concept is that a policy establishes broad guidelines or principles for making recurring decisions. The statement that promotion will be based on merit and performance provides a general basis for evaluating employees and guiding promotion decisions. It does not prescribe every detailed step, so option A, Policy, is correct. A rule would state a definite compulsory action or prohibition, such as a fixed eligibility condition that must be followed without discretion. A budget would quantify promotion-related expenditure, salaries, or incentives. A programme would combine related activities, schedules, and resources for a particular objective. Since the statement guides decisions rather than specifying a detailed procedure or amount, it is a policy.