Types of plans

Objectives state the desired results or goals of an organisation; they explain what the organisation wants to achieve. A method specifies how a task should be performed, while a rule states what is permitted or prohibited. Exam tip: choose objectives when the question asks about a goal or what is to be achieved.

Rules make an action compulsory or prohibited. In exams remember that a rule gives no choice.

Strategy considers major goals and competitive position. In exams treat strategy as a broad long-term plan.

A procedure gives ordered steps for doing work. In exams connect a sequence of steps with procedure.

A method explains how a specific task is to be done. In exams see method as the technique of doing work.

A programme combines many activities and resources. In exams remember programme as a package of activities.

Standing plans are used repeatedly in similar situations. In exams link routine work with standing plans.

A single-use plan is made for a specific purpose. In exams connect one-time events with single-use plans.

This is general guidance for decisions so it is policy. In exams understand policy as a flexible guideline.

A set of ordered steps is called a procedure. In exams identify procedure from words like first and then.

It gives a clear prohibition so it is a rule. In exams signs like no entry and must indicate a rule.

A budget is a numerical estimate of income, expenditure, and resources for a specified period. The estimated spending on raw materials for the production department is a financial plan, so it is a budget. A programme states the sequence of activities, while a rule and a policy do not give a numerical estimate of expenditure. Exam tip: When a question mentions estimated income, cost, or expenditure, the answer is usually a budget.

Strategy is related to competition and major decisions. In exams think of strategy when market competition appears.

Policy can be applied repeatedly so it is a standing plan. In exams treat policies rules and procedures as standing plans.

A special opening programme is made for one time. In exams understand a special event as a single-use plan.

Objectives are the desired results that an organisation aims to achieve within a specified period. Therefore, desired results is the correct option. Rules prescribe limits for action, whereas objectives state the targets to be achieved. Exam tip: ‘What is to be achieved?’ indicates an objective; ‘How should one act?’ indicates a rule.

Policy gives guidance but leaves scope for judgement. In exams identify policy when flexibility is shown.

Rule is the correct answer. A rule gives a specific instruction about what must or must not be done, leaving no scope for individual discretion or alternative action. In contrast, a policy provides broad guidelines for decision-making and allows some discretion. Exam tip: phrases such as “no discretion” or “no choice” usually indicate a rule.

Procedure gives sequence of steps while method gives the technique of work. In exams keep sequence and technique separate.

It is a measurable performance target so it is an objective. In exams treat a numeric target as an objective.