Give the meaning of ‘Method’ as a type of plan.   from Bus

To make the annual function of the school successful the principal of the school divided all the activities into task groups each dealing with a specific area like rehearsals, decoration, stage management, refreshments etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of management performed by the Principal in doing so.  


The function of management performed by principal is organising. Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.  

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It is deciding in advance what to do and how to do? It is one of the basic managerial functions. It requires that before doing something, the manager must formulate an idea of how to work on a particular task. This function is closely connected with creativity and innovation. It seeks to bridge the gap between where we are and where we want to go and is performed at all levels of management.
In spite of this the function of management referred above has a number of limitations. Explain any two such limitations.

 


The managerial function stated here is planning function. Planning is a systematic process of deciding in advance what is to be done in future. Planning has some limitations and they are:
(i) Planning leads to rigidity: In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it. This kind of rigidity in plans may create difficulty.
(ii) Planning involves huge costs: When plans are drawn up huge costs are involved in their formulation. These may be in terms of time and money. Detailed plans require scientific calculations to ascertain facts and figures. The costs incurred sometimes may not justify the benefits derived from the plans.

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Give the meaning of ‘Policy’ as a type of plan.


Policies are general statements that guide thinking or channelize energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms.

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Give the meaning of ‘Method’ as a type of plan.  


Methods prescribes the way or manner in which a task has to be performed to achieve the desired objective. It deals with a task stating one step of a procedure and specifying how it is to be performed. 

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Besides the investment decision the finance function is concerned with two other broad decisions. Name these decisions.  


Besides investment decision, the finance function is concerned with
(a) Financing decision and
(b) Dividend decision.

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