Skip to content

CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

A manufacturer, Kaveri Foods, plans its operations as follows. (i) 'No smoking inside the production area.' (ii) 'Preference will be given to promotion from within the company when vacancies arise.' (iii) 'Launch a Rs 5 crore plant expansion with defined projects, schedule and resources.' Which is the correct matching of these statements to rule, policy and programme respectively?

The correct matching is rule, policy and programme. A no-smoking order is a rigid specific rule, promotion-from-within is a general guide allowing discretion and so a policy, and the funded plant expansion with projects and schedule is a programme.

  1. A(i) policy, (ii) rule, (iii) programme
  2. B(i) rule, (ii) policy, (iii) programmeCorrect
  3. C(i) rule, (ii) programme, (iii) policy
  4. D(i) programme, (ii) policy, (iii) rule

Explanation

(i) is a specific, compulsory action with no discretion, so it is a rule. (ii) is a general guide leaving room for managerial judgment, so it is a policy. (iii) combines goals, projects, schedule and resources, so it is a programme. The option swapping rule and policy is wrong because it treats the flexible guide as rigid and the rigid directive as flexible.

Did you get it right without looking?

One question tells you little. A timed set on Planning, Organizing, Staffing and Leading shows your real accuracy, how long you take and where you lose marks.

Practise Planning, Organizing, Staffing and LeadingFree diagnostic mock

More Planning, Organizing, Staffing and Leading questions