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. It 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, areawise 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 para identify and explain the different types of plans discussed.

Answer 1

The different types of plans are:

(i) Objective

'One of her objective is to earn 10% profit on the amount invested in the first year.'

An objective is the end which the management seeks to achieve within a given time period.

(ii) Policy

'It was decided that raw materials like fruits, vegetables, spices etc, will be purchased on three months credit from farmers cultivating organic crops only.'

Policy is a general guideline which brings uniformity in decision making for achievement of predetermined objectives.

(iii)Procedure

'She also decided to follow the steps required for marketing of the products through her own outlets' or

‘She appointed Mohan as a Production Manager who decides the exact manner in which the production activities are to be carried out'.

It consists of sequence of routine steps on how to carry out activities. It details the exact manner in which any work is to be performed.

(iv)Budget

'Mohan also prepared a statement showing the number of workers that will be required in the factory throughout the year.' or

'Madhu informed Mohan about the sales target for different products, area wise for the forthcoming quarter,

'A budget is plan which states expected results of a given future period in numerical terms. It may be expressed in time, money or physical units.

(v) Rule

'Wile working on the production table, a penalty of Rs.100 per day for not wearing the caps, gloves and aprons was announced.'

A rule is a statement that specifies what is to be done or not to be done.