Q.Read the following statements carefully : Statement I : A rule reflects a managerial decision that a certain action must or must not be taken. Statement II : A rule allows flexibility or discretion. In the light of the given statements, choose the correct alternative from the following : (A) Both Statement I and Statement II are true. (B) Both Statement I and Statement II are false. (C) Statement I is true and Statement II is false. (D) Statement I is false and Statement II is true.

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.

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. …