CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading
A manager at a Pune bank branch writes: 'Every loan application must be first logged, then verified by the credit officer, then approved by the branch head, and finally disbursed.' This plan is best classified as a:
It is a procedure, because it sets out the chronological sequence of steps for handling loan applications. A policy only guides thinking and decisions, a strategy concerns competitive direction, and a programme combines goals, projects and resources, so none of these fits a step-by-step routine.
- APolicy
- BProcedureCorrect
- CStrategy
- DProgramme
Explanation
The statement lists a chronological sequence of steps for handling a recurring task, which defines a procedure. A policy is a general guide to decision-making and does not specify the steps. A strategy deals with competitive positioning, and a programme is a set of projects with resources.
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