Types of plans

Q: An institution first says complaints will be handled empathetically and then writes seven steps from complaint registration to resolution letter. What is the correct classification of the first and second statement?

Policy and Procedure The first statement gives decision direction and the second gives sequence. In exams guidance is policy and stepwise order is procedure.

Q: If a company chooses long term cost leadership direction under foreign competition pressure and prepares a separate promotional expense limit for it then which two plans are involved?

Strategy and Budget Long term competitive direction is strategy and a numerical expense limit is budget. In exams link external competition with strategy.

Q: In a factory the complete sequence of shutting down a machine is written separately while the best technique of tightening bolts is explained separately. What is the correct match?

Procedure and Method The complete sequence is procedure and the technique of one task is method. In exams keep the difference between sequence and technique clear.

Q: A school states that if a student cheats in an examination the result will be cancelled. There is no managerial discretion. Which type of plan is this?

Rule A rule is a strict instruction with no discretion. In exams statements with penalty and compulsion indicate rule.

Q: A business sets a target to reduce defective returned goods from 4 percent to 1 percent in nine months. This is an exact example of which plan?

Objective It is a target with measurable result and time limit. In exams a statement with percentage and period is an objective.

Q: A hospital combines recruitment training equipment purchase publicity and opening date for a new emergency ward into one plan. What will it be called?

Programme A programme is an organised set of related activities. In exams choose programme for multi activity and time bound arrangement.

Q: If a plan is made only for a one time national seminar and will end after the event then which category will it belong to?

Single use plan A single use plan is made for a special and temporary task. In exams a plan ending after an event is single use.

Q: A bank's loan approval guideline is applied for similar cases over many years. Which type of plan is this?

Standing plan A standing plan is used in recurring situations. In exams a plan applied repeatedly for a long time is a standing plan.

Q: Management says that in customer refund cases a fair decision will be taken after considering the circumstances of each case. It is not a rule but what?

Policy Policy gives guidance but leaves some discretion. In exams a statement allowing decision according to circumstances is policy.

Q: An e commerce company adopts micro warehouses and local partners to respond to a rival's fast delivery model. Which plan does this show?

Strategy Broad direction in response to a competitive challenge is strategy. In exams connect rival response and resource direction with strategy.

01An institution first says complaints will be handled empathetically and then writes seven steps from complaint registration to resolution letter. What is the correct classification of the first and second statement?

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Answer and explanation

Correct answer: A. Policy and Procedure

The first statement gives decision direction and the second gives sequence. In exams guidance is policy and stepwise order is procedure.

Practice questions

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