✓ Board-verified
Business Studies · 2023 · 6 marks
CBSE 2023 · Region 5 · Set 3 · Q32
32. (a) Explain Policy' and 'Method' as type of Plans.
32. (a) Explain Policy' and 'Method' as type of Plans.
OR
(b)
Explain the following limitations of planning:
(i)
Planning reduces creativity
(ii)
Planning involves huge costs
Marking-scheme solution
Policy
§ Policies are general statements that guide thinking or channelise
energies towards a particular direction.
§ Policies define the broad parameters within which a manager
may function.
§ A manager may use his discretion to interpret and apply a policy.
Method
§ Method is the prescribed way or manner in which a task has to
be performed taking into consideration the objective of the
organisation.
§ It deals with a task comprising one step of a procedure and
specifies how this step is to be performed.
§ Selection of right method increases efficiency in completion of a
task. The method may vary from task to task.
Planning reduces creativity
Planning is an activity which is done by the top management.
Usually the rest of the members just implements these plans. As a
consequence, middle management and other decision makers are
neither allowed to deviate from plans nor are they permitted to act
on their own. Thus, much of the initiative or creativity inherent in
them also gets lost or reduced.
Most of the time, employees do not even attempt to formulate plans.
They only carry out orders.
Thus, planning in a way reduces creativity since people tend to
think along the same lines as others. There is nothing new or
innovative.
(ii)
Planning involves huge costs
When plans are drawn up huge costs are involved in their
formulation. These may be in terms of time and money for example,
checking accuracy of facts may involve lot of time.
Detailed plans require scientific calculations to ascertain facts and
figures. The costs incurred sometimes may not justify the benefits
derived from the plans.
There are a number of incidental costs as well, like expenses on
boardroom meetings, discussions with professional experts and
preliminary investigations to find out the viability of the plan.
More from Planning
- Which of the following is not a limitation of planning function of management?2025
- Explain the following steps of the planning process: (i) Setting objectives (ii) Developing premises OR Explain the following types of plans: (i)…2026
- Identify the feature of planning which states that the purpose of planning is to meet future events effectively to the best advantage of an…2026
- Explain the following features of planning: (i) Planning focuses on achieving objectives. (ii) Planning is pervasive. OR Explain the following points…2025
- State any four limitations of planning. OR Explain the following types of plans: (i) Strategy (ii) Procedure (i) Strategy2024
- Explain the following points of importance of planning: (i) Planning establishes standards for controlling (ii) Planning reduces overlapping and…2026
- Explain the following features of planning: (i) Planning is continuous. (ii) Planning is futuristic. OR Explain the following points of the…2025
- Match the type of plan given in Column I with its meaning given in Column II. Column I Column II Policy (i) A comprehensive plan for accomplishing an…2025
CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.