Two years ago Mayank obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets and formulated action plan to achieve the same. One of his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour. sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production-Manager who decides the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, area wise for the forth coming quarter. While working on the production table a penalty of Rs 150 per day was announced for not wearing the helmet, gloves and apron by the workers.
Quoting lines from the above para identify and explain the different types of plans discussed.
Types of plans being discussed in the given paragraph:-
1. Objective:- An objective broadly outlines the key task or target to be reached at the end of a certain time period by the organisation. In the given case, the objective is highlighted in the words ‘One of her objectives was to earn 50% profit on the amount invested in the first year’.
2. Policy:- A policy is a code of conduct to be followed by a particular organisation in a particular scenario. It is not specific in nature and hence is interpreted according to the situation. In the given case, the line ‘Raw materials like flour, sugar, salt etc. will be purchased on two months credit’.
3. Procedure:- A procedure comprises guidelines to be followed in a specific order to make a policy decision to come into reality. In the given case, the line ‘Decided to follow the steps required for marketing of the products through his own outlets’ highlights the procedure to be followed.
4. Method:- A method is a specific process to be conducted to carry out a desired task. In the given case, the method is highlighted in the words ‘the exact manner in which the production activities are to be carried out’ highlight the type of plan called ‘method’.
5. Rule:- A rule is a type of plan which mentions the exact way of completing a particular task and its degree of compulsion. A rule can also be negative and guides employees about not doing a particular thing. In the given case, the line ‘Penalty of Rs 150 per day for not wearing the helmet, gloves and aprons was announced’ highlights a rule.
6. Budget:- A budget is usually a number which specifies the financial constraints and targeted achievements on an organisation. It mentions the upper limit of the expenditure of resources. In the given case, the line ‘Harsh also prepared a statement showing the number of workers which will be required in the factory throughout the year’ implies a budget.