Question

Two years ago Madhu completed her degree in food technology. She worked for sometime in a company manufacturing chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her objective was to earn $10\%$ profit on the amount invested in the first year. $11$ was decided that raw materials like fruits, vegetables, spices etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mohan as a Production Manager who decides the exact manner in which the production activities are to be carried out. Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year. Madhu informed Mohan about her sales target for different products, area wise for the forthcoming quarter. While working on the production table a penalty of Rs $100$ per day for not wearing the caps, gloves and apron was announced. Quoting lines from the above pare identify and explain the different types of plans discussed.

Answer 1

The different types of plans discussed in the paragraph are listed below.
1. Objective 'One of her objective was to earn $10\%$ profit on the amount invested in the first year"
An objective is the goal that a management desires to achieve. By stating the objective, the management broadly defines what is to be done.
2. Poky-"Raw materials like fruits, vegetables, spices etc. will be purchased on three months credit from farmers cultivating organic crops only."
A policy is a general statement that aims at channelling the efforts of the organisation in a particular direction. It forms the general response or a course of action to be followed in a particular situation.
3. Procedure "Decided. follow the steps required for marketing of the products through her own outlets" A procedure is a set of routine steps defined in a chronological order that are to be followed for the enforcement of a policy.
4. Method: The exact manner in which the production activities are to be carried out A method defines the way or manner in which a particular task can be performed. It considers one step of an entire procedure and defines the step to be taken for the completion of the given task.
5. Rule "Penalty of $Rs100$ per day for not wearing the caps, gloves and aprons was announced" A rule refers to a standard or specific statement that gives information about what is to be done and what is not to be done. Rules are the simplest type of plans.
6. Budget- "Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year" Budget refers to a numerically expressed financial statement that defines the targets to be achieved & policies to be followed in a specific period.