1. Objectives: Objectives are defined as ends for the achievement of which
an organization goes on working. They may be designed as the desired
future position that the management would like to reach. The first and
foremost step of the planning process is setting organizational objectives.
Examples increasing sales by 10%, Getting 20% return on Investment etc.
Objectives should be clear and achievable.
2. Strategy: Strategies refer to future decisions defining the organizational
directions and scope in long run. It is comprehensive plan which includes:
(i) Long term objectives, (ii) Adopting a particular course of action, (iii)
Allocating resources necessary to achieve the objectives.
3. Policy: Policies refers to the general guidelines which brings uniformity in
decision-making for achievement of organizational objectives. They
provide directions to the managers of an organization. They are flexible as
they may be changed as per requirement. Example, selling goods on cash
basis only, reserving some post for women in the organization.
4. Procedure: Procedures are those plans which determine the sequential
steps to carry out some work/activity. They indicate which work is to be
done in which sequence/way. They help in the performance of work.
Procedures are guides to action. Example: Process adopted in the
Selection of Employees.
5. Rule: Rules are specific statement that tell what is to be done and what
not to be done in a specified situation. They help in indicating which points
are to be kept in mind while performing task/work. Rules are rigid which
ensure discipline in the organization. Example: ‘No smoking in the office
premises’. Violation of rules may invite penalty.
6. Method: Methods are standardized ways or manner in which a particular
task has to be performed. There may be many ways/methods of completing
a task but that method/way must be selected by which work can be done
early at the minimum possible cost. Methods are flexible. Example, various
methods of training are adopted by an organization to train its employees
like apprenticeship training, vestibule training etc.
