The different types of plans are:

1. Objective: 'One of his objectives was to earn 50% profit on the amount invested in the first year.’
   ⟹ An objective is the end which the management seeks to achieve within a given time period.
2. Policy: ‘It was decided that raw material like flour, sugar, salt etc. will be purchased on two month credit’.
   ⟹ Policy is a general guideline which brings uniformity in decision making for achievement of predetermined objectives.
3. Procedure: ‘He also decided follow the steps required for marketing the products through his own outlets’.
               OR
   ‘He appointed Harsh as a Production who decided the exact manner in which the production activities are to be carried out’.
   ⟹  It consists of sequence of routines steps on how carry out activities. It details the exact manner in which any work is to be performed.
4. Budget: ‘Harsh also prepared a statement showing the requirement of workers in the factory throughout the year.
                OR
   ‘Mohit inform Harsh about his sales target for different products, area wise for the forth coming quarter’
   ⟹  A budget is a plan which state expected results of a given future period in numerical terms. It may be expressed in time, money or physical units.
5. Rule: ‘while working on the production table a penalty of Rs. 150 per day was announced for not wearing the helmet, gloves and apron by the worker.’
   ⟹  A rule is a statement that specifies what is to be done or not to be done.

1. Planning
2. Steps involved in planning process:
   1. Setting organizational objectives: '........ increase profits by at least 25% in the next quarter.'
   2. Identifying and evaluating alternatives courses of action: 'It has many options: to increase the working hours of labourers without additional payment, or to employ from the local community, or to sell its products sell outside the schools and colleges.’
   3. Selecting the best possible alternatives: ‘It opted to employ children from the local community, and to sell products outside the schools and colleges.’
3. Values neglected:
   1. Child labour is banned.
   2. Bad effect on student's health.
   3. Moral values. 

1. Features of business environment:
   1. Business environment is dynamic as it keeps on changing.
   2. Business environment is uncertain as it is difficult for the managers to accurately foresee future trends in the environment.
2. Planning may not work in a dynamic environment.
   The organization has to constantly adapt itself to change in environment by making changes in its plans. However, since planning cannot foresee everything, there may be obstacles to effective planning.
3. Two types of plans:
   1. Strategy: 'While making its plan, the company takes into consideration the business environment.'
   2. Budget: ‘Competition in the market upsets its financial plans; then sales targets have to be revised … accordingly cash budgets also need to be modified since they are based on sales figures.’

1. Planning

Characteristic of planning:

Planning focuses on achieving objective as specific goals are set out in the plans along with activities undertaken to achieve them. Planning has no meaning unless it contributes to the achievement of predetermined organizational goals /objectives.

Limitations of planning:

1. Planning leads to rigidity: Once a well-defined plan is drawn, managers may not be able to change it. They do not have flexibility to be able to cope with the changed circumstances.
2. Planning reduces creativity: Planning is done by top management. Middle and lower management neither allowed to deviate from plans not are they permitted to act on their own. They only carry out orders. Thus, much of the initiative or creativity inherent in them gets lost or reduced.
3. Planning is a time-consuming process: Sometimes plans to be drawn up takes so much of time that there is not much time left for their implementation.