Question

Explain the following types of plans: (i) Strategy (ii) Method (iii) Budget OR Explain the following limitations of planning function of management:…

Accepted Answer

(i) Strategy  It is a comprehensive plan for accomplishing an organisation objectives.  Taking business environment into consideration, it provides the broad contours of an organisation’s business and includes (i) determining long term objectives, (ii) adopting a particular course of action, and (iii) allocating resources necessary to achieve the objective (ii) Method  Methods provide the prescribed ways or manner in which a task has to be performed considering the objective.  The Methods may vary from task to task. (iii) Budget  A budget is a statement of expected results expressed in numerical terms.  It is a plan which quantifies future facts and figures. OR Q. (b) Explain the following limitations of planning function of management: (i) Planning may not work in a dynamic environment. (ii) Planning leads to rigidity. (iii) Planning is time consuming. Limitations of Planning: (i) Planning may not work in a dynamic environment:  The business environment is dynamic and the organization has to constantly adapt itself to changes.  It becomes difficult to accurately assess future trends in the environment. (ii) Planning leads to rigidity:  In an organisation, a well-defined plan is drawn up with specific goals to be achieved which the manager may not be in a position to change.  Managers need to be given some flexibility to be able to cope with the changed circumstances. (iii) Planning is a time-consuming process:  Sometimes drawing plans take too much time.  There is not much time left for their implementation.

Explain the following types of plans :
(i)
Strategy
(ii)
Method
(iii)
Budget

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(a)OR(b)Explain the following types of plans :(i)Strategy(ii)Method(iii)BudgetExplain the following limitations of planning function of management :(i)Planning may not work in a dynamic environment.(ii)Planning leads to rigidity.(iii)Planning is time consuming.

Marking-scheme solution

More from Planning

Explain the following types of plans :
(i)
Strategy
(ii)
Method
(iii)
Budget