Explain the following types of plans :
(i) Police
(ii) Budget
Ans.
(i) Policy Plans:
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Policy plans outline the general guidelines and principles to be followed by an organization in achieving its objectives.
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These plans establish broad frameworks for decision-making and action, providing a basis for consistent and coherent behavior across the organization.
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Policy plans are formulated by top-level management and serve as a foundation for more specific plans developed at lower levels of the organization.
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Examples of policy plans include ethical policies, human resources policies, financial policies, and quality management policies.
(ii) Budget Plans:
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Budget plans specify the financial resources allocated to different activities, projects, or departments within an organization over a specified period.
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These plans detail income, expenditures, and resource allocations, enabling organizations to manage their finances effectively and achieve financial goals.
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Budget plans can be prepared for various timeframes, such as annual budgets, quarterly budgets, or project budgets.
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They provide a quantitative representation of the organization’s strategic priorities and operational plans, facilitating resource allocation decisions and performance evaluation.
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Budget plans are typically developed through a collaborative process involving managers from different departments and levels of the organization, ensuring alignment with overall organizational objectives.
