Organisation of Commerce and Management · Ch 3 — Planning
Rule
Rule
Rules are the simplest and most rigid type of plan. They are specific statements that tell a manager or an employee exactly what must be done — or what must not be done — in a given situation.
A rule allows no flexibility or discretion. There is no room for judgment or interpretation. If a rule says “No smoking in the factory,” every person must follow it without exception. The rule reflects a managerial decision that a certain action is either compulsory or forbidden.
Because rules leave no room for compromise or change, they are usually the simplest type of plan. The only way to alter a rule is through a higher-level policy decision — a rule cannot be changed by an individual on the spot.
Rules are often confused with procedures, but they differ in scope. A procedure is a sequence of steps; a rule is a single, non-negotiable instruction. For example, “No entry without a security pass” is a rule, while the steps to obtain a pass form a procedure.
Key characteristics of rules:
- They are specific and unambiguous.
- They permit no discretion or flexibility.
- They represent a standing managerial decision.
- They are the simplest form of plan.
- They can only be changed through a policy decision, not by individual choice.
Examples of rules in an organisation:
- “No employee may enter the server room without authorisation.”
- “All purchase orders above Rs 10,000 must be approved by the department head.” …