Standing Use Plans- Concept and Objectives

Standing plans are plans that are formulated to guide managerial decisions and actions on problems which are recurring in nature. These plans provide unity and uniformity of efforts in meeting repetitive situations in an enterprise. Standing plans are classified as:
•    objectives,
•    policies,
•    procedure,
•    rules,
•    methods and
•    strategies.

Objectives refer to those results or purposes which an organisation aims to achieve. The characteristics of objectives are inter-related, multiple, realistic and long and short terms.    
Importance of objectives:
•    state mission i.e., justify existence of the organisation by giving a unique identity,
•    provide direction i.e., define the destination of the organisation towards which members are expected to work,
•    Basis of planning i.e., provides grounds on which different types of plans are to be formulated etc.
Management by objectives refers to management practice that aims to improve performance of an organisation by clearly defining objectives, agreed to by both management and employees. Superiors and subordinates jointly define the common goals, the results to be achieved and also assess the contribution of each individual.
Process of MBO refers to the broad organisational goals set by the top management, employees set their personal goals in accordance with the overall goals of the organisation. Employees have the liberty of selecting their own ways for achieving their objectives and performance is regularly reviewed at all levels.

 

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  • Q1

    Every organisation wants to increase its sales. Improving sales is a/an

    Marks:1
    Answer:

    goal.

    Explanation:
    Improving sales is a goal because it tells the desired direction not its extent or quantity e.g. improving sales is a goal whereas improving sale by 10% is an objective.
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  • Q2

    Setting organisational objectives is a part of

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    Answer:

    planning process.

    Explanation:
    Planning means deciding in advance the purpose for which an entity has been set up. Thus, it includes setting objectives.
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  • Q3

    A statement of expected results expressed in numerical terms is called

    Marks:1
    Answer:

    budget

    Explanation:
    While preparing budget, we measure past activities and projected future activities in numerical terms, so that actual performance can be compared to standard performance and can be improved or corrected.
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  • Q4

    Standing plans are ones which are

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    Answer:

    prepared to serve as guidelines.

    Explanation:
    Standing plans are recurring plans, designed to serve as guidelines for an organisation.
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  • Q5

    Objectives are determined by which level of management ?

    Marks:1
    Answer:

    Top level management

    Explanation:

    Objectives are determined by owners or top level management.

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