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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Expalin the following statements related to the planning function of management : `(i)` Planning is closely connected with creativity and innovation. `(ii)` Planning will be a futile exercise if it is not acted upon or implemented. `(iii)` Planning is the most challenging activity for the management. `(iv)` Planning is a pre-requisite for controlling. `(v)` Planning is purposeful. `(vi)` Planning is not an exclusive function of top management. |
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Answer» `(i)` Planning is deciding in advance what to do and how to do. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. `(ii)` The plan that is developed has to have a given time frame but time is a limited resource. It needs to be utilised judiciously. If time factor is not taken into consideration, conditions in the environment may change and all business plans may go waste. Planning will be a futile exercise if it is not acted upon for implemented. `(iii)` Planning is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business. `(iv)` Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with standards, if there is any deviation it can be corrected. Therefore, planning is a pre-requisite for controlling. `(v)` Planning is purposeful as it focuses on achieving objectives. Specific goals are set out in the plans along with the activities to be undertaken to achieve the goals. `(vi)` Planning is pervasive. It is required at all levels of manangement as well as in all departments of the organisation. Thus, planning is not an exclusive function of the top management. |
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| 52. |
Planning strangulates the initiative of the employees and compels them to work in an inflexible manner. What does it mean? |
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Answer» It means planning reduces creativity and leads to rigidity (i) Planning Leads to Rigidity: In an organisation a well defined plan is drawn up with specific goals to be achieved, with in a specific time frame. These plans then decide how the work will progress in the future and managers may not be in a position to change it. This creates a problem as flexibility is very important. Always adhering to the plan may not give us the desired results always. (ii)Planning Reduces Creativity: Planning is generally done by the top management. Usually the rest of the members just implement these plans. As a consequence, middle management and other decisions makers are neither allowed to deviate from plans nor are they permitted to act on their own, thus planning in a way reduces creativity since people tend to think along the same lines as others, there is nothing new or innovative. |
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| 53. |
Specific statements that tell you about what is to be done are (a) Rules (b) Procedures (c) Policy (d) Strategy |
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Answer» Rules is to be done |
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| 54. |
Which feature of planning is stressed by saying that planning is an intellectual activity of thinking rather than doing ? |
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Answer» planning is a mental exercise. |
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| 55. |
Planning is done by the top level managers and rest of the members follow them blindly. State the demerit of planning highlighted here |
| Answer» Planning reduces creativity as planning is done by top management Middle and lower level management are neither allowed to deviate from plans not permitted to act on their own. They are just expected to carry out orders. Thus, creativity inherent in them get wasted and nothing new or innovative comes out of them | |
| 56. |
Find the odd one from the following:(a) Rule (b) Procedure (c) Policy (d) Objective |
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Answer» (b) Procedure |
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| 57. |
Generally, it is thought that planning is related to the planning cycle. It means that a plan is framed, it is implemented and it is followed by another plan and so on. The above statement is related to a feature of planning, identify it.(a) Planning is continuous.(b) Planning is futuristic.(c) Planning involves decision making.(d) Planning is pervasive. |
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Answer» Correct option is (a) Planning is continuous. |
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| 58. |
Management translates work into goals and also finds ways and means to achieve them. Name the term highlighted in the statement |
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Answer» Planning Planning is the process of thinking about the activities required to achieve a desired goal. It is the first and foremost activity to achieve desired results. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills. |
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| 59. |
In which context, alternative courses are being evaluated? |
| Answer» Alternatives are evaluated in the light of their feasibility and consequences, ie costs and benefits | |
| 60. |
The basic material upon which plans are drawn is known as ....... |
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Answer» The basic material upon which plans are drawn is known as Planning premises. |
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| 61. |
Identify the type of plan from the following statements and explain its meaning.(a) Smoking is prohibited in the factory premises.(b) Sales only on cash basis. |
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Answer» (a) Rule (b) Policy |
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| 62. |
Identify the management function which insists on ‘thinking before doing’. |
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Answer» Planning insists on ‘thinking before doing |
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| 63. |
These plans are formulated at top level, defines the future decisions regarding the organisations direction and scope in the long-run. Identify the type of plan and discuss it briefly |
| Answer» Strategy It is a comprehensive plan, which involves determining long-term objectives adopting a particular course of action and allocating resources necessary to achieve such objectives. It helps to define the scope and direction of the organisation in the long-run | |
| 64. |
Name the type of plan which is time bound and linked with measurable outcome |
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Answer» Single use plan These plans are made for handling non-recurring problems. Single-use plans are also referred to as ‘specific plans’ since these are meant to solve a particular problem. These plans are formulated to handle non-repetitive and unique problem. These plans cannot be used again and again; these become obsolete after achieving their purpose. The examples of these plans are: projects, budgets, programmes. |
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| 65. |
At what step the managerial functions come into the picture? |
| Answer» At the 6th step (implementing the plan), managerial functions come into the picture | |
| 66. |
Mr Reeshabh Bhandari is the chief manager in ‘Bhandari PustakParkashans’. He is fond of continuing to present innovative ideas while planning for his business. His ideas are usually very significant. It has been observed several times that these very ideas take the form of concrete plans. This is the very reason that Mr Bhandari’s contribution to the growth and prosperity of the company continues to be quite great. Identify the ‘importance of planning’ described above.(a) Planning provides direction.(b) Planning reduces the risk of uncertainty.(c) Planning reduces overlapping and wasteful activities.(d) Planning promotes innovative ideas |
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Answer» Correct option is (d) Planning promotes innovative ideas. |
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| 67. |
A statement of expected results expressed in numerical terms is known as:(a) Budget (b) Programme (c) Policy (d) Strategy |
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Answer» A statement of expected results expressed in numerical terms is known as Budget |
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| 68. |
Identify the odd one and justify.(a) Motivation (b) Policies (c) Procedure (d) Objectives |
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Answer» Motivation. Others are types of plans. |
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| 69. |
Is a plan which states the expected results of a given future period in numerical terms. |
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Answer» The expected results of a given future period in numerical terms Budget |
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| 70. |
“Planning is of vital importance in the managerial functions but it is no Hree from limitations”. Do you agree with this statement? Justify your views. Mention any two limitations of planning. |
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Answer» (a) I agree (b) (1) Planning makes the activities rigid. (2) Long term plans are in significant in the rapidly changing business environment. (3) It reduces creativity. (4) It involves cost. |
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| 71. |
“A policy is a guide to thinking and step to decision making.” Do you agree with this statement? Justify your answer. Give two examples of the policies of a firm. |
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Answer» Policy : Policy is a broad statement formulated to provide guide line Sm decision making. Eg. (1) Promotion based on merits only. (2) We don’t sell on credit. |
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| 72. |
State the limitations of planning. |
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Answer» (1) Planning makes the activities rigid. (2) Long term plans are in significant in the rapidly changing business environment. |
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| 73. |
Briefly explain the steps in planning. |
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Answer» Planning Process (Steps in Planning) 1. Setting Objectives: The first step in planning 2. Developing premises: Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises. 3. Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives. 4. Evaluating alternative Courses: The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits. 5. Selecting an alternative: After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost. 6. Implement the plan: Implementation of a plan means putting plans, into action so as to achieve the objectives of the business. 7. Follow up action: Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule. |
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| 74. |
Briefly explain the various limitations of planning the business managers need to overcome. |
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Answer» Limitations of Planning (1) Planning makes the activities rigid. (2) Long term plans are in significant in the rapidly changing business environment. (3) It reduces creativity. (4) It involves cost. (5) It involves a lot of time. (6) Planning does not guarantee success. |
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| 75. |
‘Planning is the basic function of management.’ Explain. |
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Answer» Planning is the first important function of management. The other functions, e.g., organising, staffing, directing and controlling come later. In the absense of planning no other function of management can be performed. This is the base of other functions of management. |
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| 76. |
“The management had taken utmost care regarding the possible outcome and timely review of the Plans to achieve the set target during that hard time.” Which is the last step of the Process mentioned here?A. Implementation of planB. Timely execution of projectsC. Follow upD. To prepare alternative course of action |
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Answer» Correct option is C. Follow up |
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| 77. |
Shagun Ltd. Decides to advertise its products on radio and newspapers. What type of plan it is ? |
| Answer» Strategy is the type of plan that considers the movement of the competitors. . | |
| 78. |
Name the type of plan which reflects the managerial decision that a certain action must or must not be taken.A. PoliciesB. ProceduresC. StrategiesD. Rules |
| Answer» Correct Answer - `(d)`Rules. | |
| 79. |
Mobile phones are restricted in schools’. What type of plan is this? (Method, Programme, Rule, Policy) |
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Answer» This is Rule plan |
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| 80. |
Explain the following terms:(a) Objectives (b) Procedure (c) Programmes |
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Answer» Objectives : Objectives are the ends, towards which activity is aimed at for the accomplishment of organizational goals. Objective should be measurable in quantitative terms. (2) Procedure : Procedure is a chronological sequence or steps to be undertaken to enforce a policy. (3) Programme : Programme includes all the activities necessary for achieving a given objective. Programmes are the combination of goals, policies, procedures and rules. |
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| 81. |
Budget is an instrument of (a) Planning only (b) Control only(c) Both planning and control (d) None of these |
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Answer» (c) Both planning and control |
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| 82. |
Even though planning is important in business, it sufferers some limitations also. Explain any three limitations of planning. |
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Answer» Limitations of Planning (1) Planning makes the activities rigid. (2) Long term plans are in significant in the rapidly changing business environment. (3) It reduces creativity. (4) It involves cost. (5) It involves a lot of time. (6) Planning does not guarantee success. |
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| 83. |
“Forecasting is the essence of planning.”1. Do you agree?2. Explain. |
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Answer» 1. Yes. 2. Forecasting is the essence of planning. Forecasting involves assessing the future. Forecasting is a process of predicting relevant future situations that are likely to affect the activities of the organisation. Customer’s demand, competition, government policies, etc. can be assessed through forecasting. Forecasting helps an organisation to prepare plan efficiently and effectively |
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| 84. |
Can planning prevent problems? |
| Answer» No. planning cannot prevent problems but it can predict them and help in dealing with them. | |
| 85. |
Can planning prevent problems ? |
| Answer» As planning is based on future predictions, it requires a lot of thinking and analysing. Sometimes managers think that planning can prevent the problems from occurring, however, they neglect the fact that planning just provides a base for predicting the future. It does not give straight away solutions to the problems. | |
| 86. |
What are the main points in the definition of planning? |
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Answer» Following are the main points in the definition of planning: i. What to do? ii. How to do it? iii. When to do it? iv. Who is to do it? |
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| 87. |
One of the functions of Management is considered a base for all other functions. Name that function. |
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Answer» It is planning. |
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| 88. |
Name the type of plan which provides the prescribed ways in which a task has to be performed considering the objective. |
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Answer» Method is the type of plan which provides the prescribed ways in which a task has to be performed considering the objective. |
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| 89. |
Name the type of plan which provides directions for all decisions, and actions. |
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Answer» Correct Answer - Objective objective |
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| 90. |
Name the type of plan which is also a control device from which deviation can be taken care of. |
| Answer» Budget is the type of plan which is also a control device from which deviation can be taken care of. | |
| 91. |
Name the type of plan which is also a control device from which deviation can be taken care of |
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Answer» Budget is also a control device from which deviation can be taken care of |
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| 92. |
Name the type of plan in which the minutest details are worked out, that is procedures, rule and budget within the broad framework of policy. |
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Answer» Programme is the type of plan in which the minutest details are worked out, |
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| 93. |
What do you mean by “Single Use Plan” and “Standing Plan”? |
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Answer» Types of Plans 1. Single use plan: A single use plan is developed for a one-time event or project. Such plans are not to be repeated in future. E.g. budgets, programmes, projects, etc. 2. Standing plan: A standing plan is used for activities that occur regularly over a period of time. E .g. policies, procedures, methods and rules. |
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| 94. |
Classify the following as single use plan and standing plan.Budget, Method, Rule, Programmes, Procedure & Policies |
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Answer» 1. Single use Plan Budget, Programme. 2. Standing Plan Method, Rule, Procedure, Policies. |
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| 95. |
'Offering 30% jobs to women.’ What type of plan is it? |
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Answer» Reservation Policy |
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| 96. |
Detect the differences in the following statements contained in a firm’s plan.1. We sell goods only on Cash basis2. Smoking is prohibited in the factory Premises. |
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Answer» 1. Policy 2. Rule |
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| 97. |
‘Though planning is an important tool of management, yet it is not a remedy for all types of problems.’ Do you agree with this statement? Give any five reasons in support of your answer.` |
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Answer» Yes, I do agree with this statement. No doubt planning is an important tool of management but it is not free from limitations. That is why, it can be said that it is not a remedy of all types of problems. Following are the limitations of it: i. Planning Creates Rigidity: Although the quality of flexibility is inherent in planning, but it must be admitted that only small changes are possible. Big changes are neither possible nor in the interest of the organisation. Since it is not possible to introduce desired changes according to the changed situations, the organisation loses many chances of earning profits. ii. Planning does not work in a Dynamic Environment: Planning is based on the anticipation of future happenings. Since future is uncertain and dynamic, therefore, the future anticipations are not always true. Therefore, it can be said that planning does not work in dynamic environment. iii. Planning Reduces Creativity: Under planning all the activities connected with the attainment of objectives of the organisation are pre-determined. Consequently, everybody works as they have been directed to do and as it has been made clear in the plans. Therefore, it checks their incisiveness. It means that they do not think about appropriate ways of discovering new alternatives. iv. Planning Involves Huge Costs: Planning is a small work but its process is really big. Planning becomes meaningful only after traversing a long path. It takes a lot of time to cover this path. During this entire period the managers remain busy in collecting a lot of information and analysing it. In this way, when so many people remain busy in the same activity, the organisation is bound to face huge costs. v. Planning is a Time Consuming Process: Planning is a blessing in facing a definite situation but because of its long process it cannot face sudden emergencies. In such a situation, if the manager thinks of completing the planning process before taking some decision, it may be possible that the situations may worsen or the chance of earning profit may slip away. Thus, planning is time consuming and it delays action. |
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| 98. |
Select an example each of objecvitves, goals and policies from the following plans.1. Increase sales by 10%2. Every employee should mark attendance before 10 a.m.3. Maximise the profit. |
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Answer» 1. Objective 2. Rule 3. Objective |
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| 99. |
Types of Planning. |
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Answer» Types of Planning:
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| 100. |
What is strategy? |
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Answer» Contrivance used for the accomplishment of pre-decided objectives of planning is known as strategy. |
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