Planning Test - 54

Decision making is regarded as the mental processes resulting in the selection of action among alternative scenarios. Decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions.

Policy is the organisation's general response to a particular problem or situation. It is the organisation's own way of handling the problems. Thus hiring only university trained engineers is the example of policy.

Profitability budget specifies at different levels of sales, expected profit level. Profitability is a measure of an organization's profit relative to its expenses.

Procedure involves to establish required sequence of steps in advance to handle the future problems. e.g. procedure of selection of employees, procedure for admission in a school.

Policy is the general response of an organisation in a particular situation. These are the organisation's own customised way of handling problems. Selling goods on cash basis is a type policy.

Business plans should emphasize ideas and concepts not people.

Businesses differ in key marketing, production, and financial issues. Their plans must reflect such differences and must emphasize appropriate areas and deemphasize minor issues.

Planning involves setting objectives and developing course of action for future. It is deciding in advance as to what to do and how to do.

Planning is a continuous process. It starts with setting the objectives and then putting them into action. One can ensure the proper implementation of plans with proper monitoring by comparing the actual results with expected. Thus it is the last step of planning process.

Budgets are the statement of expected result expressed in numerical terms. The standards are compared with actual performances and if there is some deviations, these should be taken care of.

Business strategy formulates the effective management concentrates on opportunities and threats in long-range plans. Proper strategic planning made by the business organizations help to improve management strategies and policies. It helps to achieve organization growth in a more efficient manner.