Question

Explain the following types of plans:
(i) Strategy
(ii) Procedure

Hint:

A strategy provides the overall direction for achieving goals, whereas a procedure ensures systematic execution of specific tasks. Both are essential for effective planning and management.

Answer 1

(i) Strategy
- A strategy is a holistic plan developed by an organization to attain its long-term goals, accounting for the evolving business landscape.
- It dictates the overall guidance for decisions and specifies resource allocation for competitive superiority.
- Effective strategies consider external influences like market shifts, rivals, and governmental regulations.
- Example: A business expansion into foreign markets as part of its growth strategy.

(ii) Procedure
- A procedure is a defined, sequential set of actions necessary to execute a specific organizational task or function.
- It guarantees consistency, effectiveness, and standardization in work operations, thus minimizing mistakes and boosting output.
- Procedures are established to maintain operational uniformity and adhere to company guidelines.
- Example: The established process for onboarding new hires, encompassing job advertising, candidate screening, interviews, and the final selection.