Standing Plans - Rules and Strategies

Rules are specific plans or statements that lay down the required course of action for a particular situation. Rules are precise, rigid, and allow no discretion to employees. Characteristics of Rules:
•    they deal with specific situations,
•    indicate the limits of acceptable behavior of employees,
•    help in maintaining discipline, etc.
These instructions are the rigid and specific statements that clearly define what action needs to be taken or not taken, in order to maintain discipline in an organisation.
Policies are general statements that guide decision making whereas Rules are specific statements that guide behaviour. Policies are plans that define the attitude of management whereas Rules specifically indicate what should or should not be done. Procedure contains chronological sequence of steps whereas Rules contain statements but are not in sequence. Procedure contains broad and general statement but Rules contain specific statements. Methods relate to work or tasks whereas Rules relate to human behaviour. There is no penalty on violation of Methods but there is penalty in case rules are violated.
Strategies are comprehensive and integrated plan which indicates the desired future of an organisation. Strategy is formulated for solving challenging and unforeseen situations whereas Policy is formulated to carry out a routine activity. Different strategies are formulated to solve diverse problems but same policy is used in order to solve routine problems.  Characteristics of strategies:
•    action oriented, dynamic in nature,
•    long term and
•    flexible etc.
The different types of strategies are strike while the iron is hot, camel’s head in the tent, strength in unity, time is a great healer, etc.

 

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  • Q1

    Y Electricals decides to sell televisions sets through exchange of old television sets. This plan is

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    Answer:

    strategy.

    Explanation:

    This plan is a strategy. Strategy is a comprehensive plan for accomplishing organisational objectives.

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  • Q2

    The simplest types of plans are known as

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    Answer:

    strategies

    Explanation:

    The rules are usually the simplest types of plans because there is no compromise or change unless a policy decision is taken or required to be taken.

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  • Q3

    Whether to introduce a new product or not, how to introduce a product and finding markets for the product are examples of

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    Answer:

    strategies.

    Explanation:
    Strategies are formulated to deal with external environment and the medium and long-term objectives of the organisation. Decisions regarding a new product have to be taken while taking into consideration the external environment and the strategies of competitors.
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  • Q4

    The plan which reflects the managerial decision that a certain action must or must not be taken is

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    Answer:

    rule.

    Explanation:
    Rules are specific statements that inform what is or is not to be done.
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  • Q5

    “No smoking” is a/an

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    Answer:

    rule.

    Explanation:
    “No Smoking” is a rule because its non-compliance will invite punishment or fine.
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