Planning Test - 4

All others are the characteristics of planning and correct except this one. This is also not correct.

The single use plans are designed for a particular situation and are used for once only. Different plans are made for different situations. e.g. programmes, budgets etc.

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.

It is not possible to change the pre decided plans. With the changing situations, plans sometimes fail to give positive results. Thus we can say plans lead rigidity.

Planning involves various assumptions, predictions and environmental scanning. Financial and non financial predictions for future reduce the risk of uncertainties.

Implementation of plan means putting the plans into action. It can only be possible after selection of an alternative.

All the activities are directed towards objectives. These are the end results of planning. Objectives define the future state of affairs which the organisation want to realise. Example:

• decrease in rejection by 1%
  
• increase in sales by 15%  etc.
  

Under planning, various alternatives are listed and after evaluation of these alternatives the best alternative is selected. All this process involves mental exercise.

It is the limitation of planning.

Rule are norms for actions and non actions of employees. They are rigid in nature. The statement "No smoking in the factory" must be adhered. Thus it comes under Rule.

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.

Programmes are a combination of goals, policies, procedures, rules. These are made to get a systematic working in the organisation. e.g. development of new product, construction of shopping mall etc.

Objectives are the ends towards which all the activities are directed. Thus planning begins with objectives because all the policies, strategies, procedures etc. are formed to achieve objectives only. Therefore the first step of planning is setting up the objectives.

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.

Rules are the code of conduct or general instructions in any organisation. It specifies what to do and what not to do. Thus rules maintain descipline in the organisation.

Methods are the systematic way of doing routine or repetitive jobs. e.g. method for valuation of stock, method of training etc.

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

To perdict Cash inflows comes from sales and other revenue generating activities and cash outflows in the form of expenses over a period of time, a type of budget is prepared which is called cash budget.

Planning only provides a base for analysing future. Future is uncertain as business environment always keeps on changing. There may be a number of unknown factors that could have not predicted. Thus planning does not give guarantee success.

It means planning is futuristic. Managers make predictions for future not for the past. The past is used as basis to make assumptions for future.

All others are the importance of planning except this.

Because Plans can not change with the dynamic business environment. Thus they lead rigidity.

Programmes are the detailed statement of a project which is prepared for various activities. It comprises of objectives, procedures, policies and rules etc.

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.

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.

It is a comprehensive plan of the organisation and is influenced by business environment. Example:  sales promotion techniques, choice of advertising media etc.

Rules are rigid, stringent and compulsive in nature. They must be followed and if are not followed then strict action can be taken. A fine or penality can be charged on violation.

Methods are the way of doing repetitive or routine jobs. Therefore no fine or penality is charged in violation of methods. But penality is charged in case of law and rule.

Planning is an intellectual process. The planners make prediction for future by using their expertise, innovative ideas and creativity. Thus planning promotes creativity.

Under planning process, we set objectives and decide in advance the appropriate course of action for future. Thus planning bridges gap between present and future position.

Plans are designed for short term goals and long term goals. Thus plans are of two types:

Single use plans are used for only once.

Standing plans are used over and over again.