Standing Use Plans-Policies, Procedures & Methods

Policies are general statements formulated for guidance, they provide framework within which a person can act. Importance of policies:
•    operationalise objective,
•    delegation of authority,
•    speed up decision making,
•    aid training, etc.
Various considerations while formulating policy are achievement of organisational objectives, proper participation and reflect business environment and flexibility, consistency, proper communication and in writing.
Types of policies are originated policy, appealed policy, implied and  written policy in writing. Limitations of policies are that may lead to friction and confusion if applied without understanding and rigid policies may stifle initiative and creativity.
Procedures describe exact manner an activity is to be perfomed. Features:
•    procedures are guide to an action;
•    involve series of steps involved,
•    no scope for interpretation,
•    narrow in scope,
•    less flexible and
•    helps in implementation and execution of policies.
Primary importance of procedures are that it save manager’s time and efforts in directing subordinates, improve efficiency by providing best manner of doing a job, etc. Procedures are based on adequate facts of particular situation, focus on desired objectives and established policies, standardised so that responsibility can be easily fixed, well balanced and reviewed periodically. Limitations of procedures are rigidity in working, discourage initiative and creative thinking of employees.
Method is standardised way of accomplishing repetitive and routine jobs. Features:
•    manner and sequence of performing a particular task,
•    designed to keep operations running on planned lines,
•    represents the best way to doing a job, etc.
Importance of method are simplify and standardise the work, prevent confusion and adhoc behaviour and help in economic and efficient use of procedures.


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  • Q1

    The guiding principles established by the company to govern actions, usually under repetitive cases are called



    Policies are not the actual procedures of doing things but are the things that we have to keep in mind while following the actual procedure. “Honesty is the best policy” means that we have to keep this in mind while following procedures.
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  • Q2

    Series of related tasks is known as




    Series of related tasks that make up the chronological sequence and establish ways of performing the work to be accomplished are known as Procedures.

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  • Q3

    Policies are____oriented.



    Policies are objective oriented- Policies are framed to achieve the predetermined objectives of the business as such they should be supplementary and complementary to objectives.
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  • Q4

    What are rules?


    The specific and definite action to be taken with respect to specified situations are called Rules.

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  • Q5

    What do you mean by Methods?


    Methods are formalised and standardised way of accomplishing repetitive and routine jobs. They are designed to keep operations running on planned and desired lines to prevent confusion ensure economy and efficiency.

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