Q.State, giving reason, whether the following statement is true or false : "A rule is the prescribed way or manner in which a task has to be performed considering the objective."
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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. …
This statement is FALSE. What is described — "the manner in which a task has to be performed considering the objective" — is NCERT's definition of a Method, not a Rule. A Rule is a specific statement of what must or must not be done, allowing no discretion at all, rather than describing 'how' a task is performed. …
The statement is FALSE — it describes a Method, not a Rule. A Rule is a specific statement about what must or must not be done, with no built-in flexibility of 'manner.'
Planning, as a function of management, produces several types of plans besides objectives and strategies — including methods, rules and procedures, and these are easy to confuse. A Method is the prescribed, well-thought-out way or manner in which a task must be performed, with the objective clearly in mind — exactly what this statement describes. A Rule, however, is a much more rigid, standalone statement that says what is or is not to be done in a given situation — for example, "No smoking in the factory premises" — and allows for no discretion or alternative approach; i …
- PSEB Punjab Class 12 (Commerce) 2026Set ANNUAL1 markMCQQ.Read the case given below and answer the question that follows: Three years ago, Ritu completed her degree in Microbiology. She worked for some time in a company manufacturing ketchup, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her targets was to earn 15% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Pankaj as a Production Manager who decides the exact manner in which the production activities are to be carried out. Pankaj also prepared a statement showing the number of workers that will be required in the factory throughout the year and estimated salaries. Ritu informed Pankaj about her sales target for different products area wise for the forth coming quarter. While working on the production place, a penalty of ₹ 100 per day for not wearing the caps, gloves and an apron was imposed. From the lines given in the above para, identify different types of plans discussed. "While working on the production place, a penalty of ₹ 100 per day for not wearing the caps".(a) Policy(b) Strategy(c) Rules(d) Procedure
›Reveal solutionSolution
Correct answer: (c) Rules.
A rule is a specific, rigid statement that lays down exactly what must or must not be done in a situation and allows no discretion; breaking it usually invites a penalty. The requirement to wear caps, gloves and an apron on the production floor, with a ₹100-per-day penalty for not doing so, is exactly such a rigid do/don't statement with a …
- PSEB Punjab Class 12 (Commerce) 2026Set ANNUAL1 markMCQQ.Read the case given below and answer the question that follows: Three years ago, Ritu completed her degree in Microbiology. She worked for some time in a company manufacturing ketchup, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her targets was to earn 15% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Pankaj as a Production Manager who decides the exact manner in which the production activities are to be carried out. Pankaj also prepared a statement showing the number of workers that will be required in the factory throughout the year and estimated salaries. Ritu informed Pankaj about her sales target for different products area wise for the forth coming quarter. While working on the production place, a penalty of ₹ 100 per day for not wearing the caps, gloves and an apron was imposed. From the lines given in the above para, identify different types of plans discussed. "Pankaj also prepared a statement showing the number of workers that will be required in the factory throughout the year and estimated salaries".(a) Programme(b) Budget(c) Method(d) Strategy
›Reveal solutionSolution
Correct answer: (b) Budget.
A budget is a plan that expresses expected results in numerical (quantitative) terms — in units, rupees, hours or number of people. Pankaj's statement estimating the number of workers needed over the year and their salaries is a numerical plan of manpower and cost, so it is a budget (specifically a manpower/labour bud …
- PSEB Punjab Class 12 (Commerce) 2026Set ANNUAL1 markMCQQ.Read the case given below and answer the question that follows: Three years ago, Ritu completed her degree in Microbiology. She worked for some time in a company manufacturing ketchup, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her targets was to earn 15% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Pankaj as a Production Manager who decides the exact manner in which the production activities are to be carried out. Pankaj also prepared a statement showing the number of workers that will be required in the factory throughout the year and estimated salaries. Ritu informed Pankaj about her sales target for different products area wise for the forth coming quarter. While working on the production place, a penalty of ₹ 100 per day for not wearing the caps, gloves and an apron was imposed. From the lines given in the above para, identify different types of plans discussed. "Production Manager Pankaj decides the exact manner in which the production activities are to be carried out".(a) Procedure(b) Strategy(c) Policy(d) Method
›Reveal solutionSolution
Correct answer: (d) Method.
A method is the prescribed way or manner in which a particular task or a step of a procedure is to be performed. When Pankaj decides the exact manner in which the production activities are to be carried out, he is laying down the method of doing that work. It is narrower than a procedure (which is a sequence of steps) and …
- PSEB Punjab Class 12 (Commerce) 2026Set ANNUAL1 markMCQQ.Read the case given below and answer the question that follows: Three years ago, Ritu completed her degree in Microbiology. She worked for some time in a company manufacturing ketchup, pickles and murabbas. She was not happy in the company and decided to have her own organic food processing unit for the same. She set the objectives and the targets and formulated action plan to achieve the same. One of her targets was to earn 15% profit on the amount invested in the first year. It was decided that raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating organic crops only. She also decided to follow the steps required for marketing of the products through her own outlets. She appointed Pankaj as a Production Manager who decides the exact manner in which the production activities are to be carried out. Pankaj also prepared a statement showing the number of workers that will be required in the factory throughout the year and estimated salaries. Ritu informed Pankaj about her sales target for different products area wise for the forth coming quarter. While working on the production place, a penalty of ₹ 100 per day for not wearing the caps, gloves and an apron was imposed. From the lines given in the above para, identify different types of plans discussed. "She also decided to follow the steps required for marketing of the products through her own outlets".(a) Method(b) Policy(c) Budget(d) Procedure
›Reveal solutionSolution
Correct answer: (d) Procedure.
A procedure is a standing plan that lays down the exact chronological sequence of steps to be followed to carry out an activity. The phrase 'follow the steps required for marketing of the products' refers to a set series of steps performed in a definite order, which is a procedure. A method relates to how one step is done, wh …
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