Give the meaning of objective and policy as types of plan.
Objectives: Objectives are the ends towards which activities are directed. They are the end result of each and every activity in an organisation. Objectives of an organisation are
- It should relate to one single activity.
- It should relate to a result-oriented activity but not to act to be performed.
- It should be measurable or must be measured in quantitative terms.
- It should have some time limit to achieve the set objectives.
- It must be achievable.
- Planning starts when an objective is set. Proper planning gives a boost to a well Organized and goal-oriented management. For example, if a sales target is to be achieved, then the plans must be made in sync with this objective.
Policies: Policies are the statements that act as a guide to channelise the efforts of the organisation in a particular direction. They provide the basis for the interpretation of the organisation's strategies and define broad parameters for the functions of the management. They are usually flexible in nature. With strategies and policies, the company would be able to draft the plan and take steps to survive in the increased market competition.