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Question

Give the meaning of 'procedure' and 'rule' as types of plans.

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Solution

Procedure: It is a stipulated sequence of a course of action for handling activities. They are specified in chronological order, e.g. there may be a procedure for requesting supplies for production. Procedures are designed to execute policies and achieve objectives.

For example, the procedure may be for the purchase of raw material, selection of employees, redressal of grievances, etc.

Rules: These are specific statements that inform what is to be done. They do not allow any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken. Rules generally refer to the administrative area of the procedure. They serve as guides and do not leave any scope for discretion.


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