Two years ago Nishant, completed his degree in Textile Engineering. He worked for some time in a company manufacturing readymade garments. He was not happy in the company and decided to have his own readymade garments manufacturing unit

Two years ago Nishant, completed his degree in Textile Engineering. He worked for some time in a company manufacturing readymade garments. He was not

Two years ago Nishant, completed his degree in Textile Engineering. He worked for some time in a company manufacturing readymade garments. He was not happy in the company and decided to have his own readymade garments manufacturing unit. He set the objectives and the targets and formulate an action plan to achieve the same. One of his objectives was to earn 80% profit on the amount invested in the first year. It was decided that raw materials like cloth, thread, buttons etc, will be purchased on two months' credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Ritesh as a production manager, who decides the exact manner in which the production activities are to be carried out. Ritesh also prepared a statement showing the requirement of workers in the factory throughout the year. Nishant informed Ritesh about his sales target for different products area wise for the forthcoming quarter. A penalty of Rs 200 per day was announced for the workers who found smoking in the factory premises. Quoting lines from the above para identify and explain the different types of plans discussed.

Answer: The different types of plans discussed in the paragraph are listed below.

1). Objective- "One of her objectives was to earn 80 % profit on the amount invested in the first year" Objectives are the end results, which the management seeks to achieve, by its operations. It is to be expressed in specific terms i.e., they should be measurable in quantitative terms, in the form of a written statement of desired results to be achieved within a given time period.

2). Policy- "It was decided that raw materials like cloth, thread, buttons etc. will be purchased on two months credit." Policies are general statements that guide thinking or channel energies towards a particular direction. It provides a basis for interpreting strategy. It forms the general response or a course of action to be followed in a particular situation.

3). Procedure- "Decided to follow the steps required for the marketing of the products through her own outlets" A procedure is a set of routine steps defined in a chronological order that is to be followed for the enforcement of a policy.

4). Method- "The exact manner in which the production activities are to be carried out" Methods provide the prescribed ways or manner in which a task can be performed considering the objective. It considers one step of an entire procedure and defines the step to be taken for the completion of the given task.

5). Rule- "A Penalty of Rs 200 per day was announced for the workers who found smoking in the factory premises" 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 plan.

6). Budget- "Ritesh also prepared a statement showing the requirement of workers in the factory throughout the year" A budget is a statement of expected results expressed in numerical terms for a definite period in the future.


Two years ago Nishant, completed his degree in Textile Engineering. He worked for some time in a company manufacturing readymade garments. He was not happy in the company and decided to have his own readymade garments manufacturing unit


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