Q.What is meant by 'Rule' ?
Concept understanding — Standing Plan Types
Standing Plans: The Rulebook That Keeps an Organisation Running
Think about your school. Every morning, the assembly happens at the same time. The uniform code is fixed. The exam schedule follows a pattern year after year. Nobody rewrites these rules from scratch every Monday — they are already in place, guiding how things work.
That is exactly what a standing plan is in management. It is a pre-designed, long-term plan that provides guidelines for decisions and actions that happen repeatedly. Once created, it stands ready to be used again and again, without needing fresh approval each time.
Why Standing Plans Exist
Managers cannot make a new decision every time a routine situation arises. If a company had to decide afresh each month how to handle a late employee, or what to do when a customer complains, chaos would follow. Standing plans remove that uncertainty. They create consistency, efficiency, and fairness — everyone knows what to expect, and managers can focus on unusual problems instead of repeating the same small decisions.
Standing plans are the backbone of routine management. They convert repetitive decisions into predictable rules, saving time and reducing confusion.
The Four Main Types of Standing Plans
The NCERT textbook identifies four key types. Each serves a different purpose, but together they form a complete framework for routine operations.
1. Policy — The Broad Guideline
A policy is a general statement that sets the boundaries for decision-making. It tells employees what is allowed or expected, but not how to do it.
- Example: "We follow a 'no questions asked' return policy for 30 days."
- Example: "Promotions are based on merit and seniority."
Policies are flexible. They give managers room to interpret the situation, as long as they stay within the stated boundary. A policy does not say "give every customer a refund" — it says "we accept returns within 30 days," leaving the manager to decide if a torn product qualifies.
2. Procedure — The Step-by-Step Sequence
A procedure is more detailed than a policy. It specifies the exact sequence of steps to be followed in a particular situation. It answers how something must be done.
- Example: The procedure for applying for leave — fill form A, get it signed by the reporting manager, submit to HR, wait for email confirmation.
- Example: The procedure for handling a cash shortage at the end of the day — count the drawer, report to supervisor, fill discrepancy form.
Procedures leave little room for judgment. They are designed for tasks that must be done the same way every time to avoid errors or delays.
3. Method — The Specific Way to Do One Task
A method is even narrower than a procedure. It focuses on how a single, specific task is to be performed. While a procedure covers a whole process (like "onboarding a new employee"), a method covers one step within that process (like "how to fill the employee ID card").
- Example: The method for folding a shirt in a retail store — fold sleeves behind, then fold in thirds.
- Example: The method for answering a phone call — "Good morning, XYZ Company, how may I help you?"
Methods are about efficiency and standardisation. They ensure that every employee does the same task in the most efficient way, reducing waste and variation.
4. Rule — The Hard Boundary
A rule is the strictest type of standing plan. It tells employees exactly what is allowed and what is not, with no room for discretion. Rules are "do this" or "do not do that" statements.
- Example: "No smoking on the premises."
- Example: "All visitors must sign in at the reception."
Rules are non-negotiable. If a policy says "employees may take breaks," a rule says "breaks must not exceed 15 minutes." Rules exist for safety, discipline, and legal compliance.
The difference between a policy and a rule is flexibility. A policy guides; a rule commands. A policy says "we prefer punctuality"; a rule says "you must be at your desk by 9:00 AM sharp."
How They Work Together
Imagine a restaurant. The policy is "we serve only vegetarian food." The procedure for taking an order is: greet the customer, note the order, repeat it back, send it to the kitchen. The method for plating a dish is: place rice on the left, curry on the right, garnish with coriander. The rule is: "No mobile phones in the kitchen."
Each type handles a different level of detail. Together, they create a system where everyone knows what to do, how to do it, and what the limits are.
Why This Matters for Exams
The NCERT textbook expects you to:
- Define each type clearly.
- Distinguish between them — especially policy vs. rule, and procedure vs. method.
- Give examples from real or hypothetical organisations.
A common exam question is: "Differentiate between a policy and a rule." The key point is that a policy is a guideline with flexibility, while a rule is a strict command with no exceptions.
Standing plans are reusable. They are created once and applied repeatedly. This is what makes them "standing" — they stand ready for use, unlike single-use plans that are created for one-time events (like a budget for a specific project).
A Final Intuition
Think of standing plans as the operating system of an organisation. Just as your phone's OS handles routine tasks (opening apps, connecting to Wi-Fi) without you thinking about it, standing plans handle routine decisions so that managers can focus on the big picture. Without them, every small decision would require a new meeting, a new memo, and a new approval — and nothing would ever get done.
Part (a): A rule is a rigid standing plan stating what must or must not be done, with no discretion. Part (b): Organising is the process of identifying, grouping and assigning activities and establishing authority relationships to execute plans.
A Rule is one of the standing plans used in an organisation. It is a specific statement of what is to be done or not to be done in a particular situation. Unlike a policy (a broad guideline) or a procedure (a sequence of steps), a rule leaves no room for interpretation or judgement — it must be followed exactly as stated. Rules are the simplest type of plan and generally reflect a managerial decision that a certain action must (or must not) be taken. They usually specify a penalty for their violation, which is why compliance is strict. Common examples are "No smoking on the premises", "All visitors must sign the register", or "Employees must wear safety helmets in the shop floor". Rules bring uniformity and discipline to behaviour.
A rule is a standing plan that prescribes or prohibits a specific action and allows no discretion or deviation.
Concept understanding — Organising Process Steps
Organising Process Steps: From Chaos to Coordination
Think about the last time you helped plan a family gathering. First, someone had to decide what needed to happen — food, seating, entertainment. Then came the question of who would bring the drinks, who would arrange the chairs, and when everything should be ready. Without this sequence, the event would descend into confusion. That sequence is exactly what the organising process is about, but applied to a business or any formal group.
In management, organising is the function that arranges resources — people, materials, money — into a structured pattern so that the organisation's goals can be achieved efficiently. The process of organising is not a single step; it is a series of logical steps that build upon each other. NCERT textbooks lay out these steps clearly, and understanding them in order is crucial for any exam.
The Five Steps of the Organising Process
1. Identification and Division of Work
The very first step is to look at the total work that needs to be done and break it down into smaller, manageable parts. This is called division of work. For example, if a company wants to manufacture furniture, the total work includes designing, cutting wood, assembling, painting, quality checking, and selling. Each of these becomes a separate task.
Why does this matter? No single person can do everything. Dividing work allows specialisation — each person becomes good at one thing, which increases efficiency and speed. This step answers the question: What needs to be done?
2. Departmentalisation
Once work is divided into tasks, similar tasks are grouped together into departments or units. This grouping is called departmentalisation. Common bases for grouping include:
- Function — marketing, finance, production, human resources
- Product — a separate department for each product line (e.g., soaps, detergents, cosmetics)
- Territory — North India division, South India division
- Customer — retail customers, wholesale customers, government clients
The purpose is to coordinate related activities under one head. This step answers: How should tasks be grouped?
In small organisations, departmentalisation may be informal. But as an organisation grows, formal departments become essential to avoid chaos. NCERT emphasises that the choice of departmentalisation depends on the nature of the business and its size.
3. Assignment of Duties
Now that departments exist, each department's work must be assigned to specific individuals. This step involves matching jobs with people. The manager decides who will do what, based on each person's skills, experience, and availability.
For instance, in the production department, one worker may be assigned to cutting wood, another to assembling, and a third to painting. Each person gets a clear set of duties. This step answers: Who will do what?
Assignment of duties must be clear and unambiguous. If two people are told to do the same task without coordination, confusion and conflict arise. NCERT warns that overlapping duties are a common source of inefficiency.
4. Establishing Reporting Relationships
This is the step that creates the hierarchy or chain of command. Once duties are assigned, it must be clear who reports to whom. Every person (except the top manager) has a superior, and every manager (except the lowest-level worker) has subordinates.
This step creates the organisational structure — a pyramid where authority flows downward and accountability flows upward. For example, a worker reports to a supervisor, the supervisor reports to the department head, and the department head reports to the general manager. This step answers: Who is answerable to whom?
Without clear reporting relationships, instructions get lost, and no one knows who has the authority to make decisions.
5. Coordinating Activities
The final step is to ensure that all the divided and assigned work actually fits together smoothly. Coordination is not a one-time action; it is an ongoing effort to harmonise the efforts of different departments and individuals.
For example, the production department must coordinate with the sales department — if sales promises delivery by a certain date, production must have the goods ready. Similarly, finance must coordinate with all departments to ensure budgets are followed. This step answers: How do we ensure everything works together?
NCERT treats coordination as the essence of management, but in the organising process specifically, it is the step that ties all previous steps together. Without coordination, even the best division of work and departmentalisation will fail.
Why This Sequence Matters
The steps are not arbitrary. Each step logically leads to the next. You cannot assign duties before you know what the duties are (step 1). You cannot assign duties to a department that hasn't been formed yet (step 2). You cannot establish reporting relationships without knowing who is doing what (step 3). And coordination is meaningless if the structure isn't already in place.
In exams, you may be asked to list these steps in order, or to explain what happens if one step is skipped. The key is to remember that organising is about creating order out of potential chaos — and these five steps are the blueprint for doing that.
A Quick Memory Aid
Think of the acronym D-D-A-R-C:
- D — Division of work
- D — Departmentalisation
- A — Assignment of duties
- R — Reporting relationships
- C — Coordination
Or simply remember the sequence as: Break it down, group it, give it to someone, tell them who's in charge, and make sure it all fits.
Part (a): A rule is a rigid standing plan stating what must or must not be done, with no discretion. Part (b): Organising is the process of identifying, grouping and assigning activities and establishing authority relationships to execute plans.
Organising is the second function of management, performed after planning. It means arranging the resources and activities of an enterprise into a coherent structure so that plans can be executed. The process involves: (i) identifying and dividing the total work into activities, (ii) grouping similar activities into departments (departmentalisation), (iii) assigning duties to the right persons, and (iv) establishing clear authority-responsibility (reporting) relationships. By doing this, organising creates a framework in which every person knows their role, the resources available, and to whom they are answerable — enabling coordinated action toward the firm's objectives.
Organising is the process of identifying and grouping activities, assigning duties, and establishing authority-responsibility relationships to implement the plans of the enterprise.
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