The correct answer is option (2)- A-III, B-IV, C-II, D-I.
| List I |
List II |
| A. Policy |
III. General statements which guide to managerial actions and decisions. |
| B. Rule |
IV. Specific statements which do not allow any flexibility or discretion. |
| C. Procedure |
II. Sequence of steps of performing work in a particular manner. |
| D. Method |
I. Manner to perform a task which saves time, efforts and money. |
A. Policy - General statements which guide to managerial actions and decisions.
Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms They are guides to managerial action and decisions in the implementation of strategy. Policies can be flexible as they can be adaptable according to situations.
B. Rule - Specific statements which do not allow any flexibility or discretion.
Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken. They are usually the simplest type of plans because there is no compromise or change unless a policy decision is taken. Rule have no flexibility so they prescribed about the do or don't in the company. Rules may come with consequences or penalties for non-compliance.
C. Procedure - Sequence of steps of performing work in a particular manner.
Procedures are routine steps on how to carry out activities. They detail the exact manner in which any work is to be performed. They are specified in a chronological order. For example, there may be a procedure for requisitioning supplies before production. Procedures are specified steps to be followed in particular circumstances. They are generally meant for insiders to follow. The sequence of steps or actions to be taken are generally to enforce a policy and to attain pre-determined objectives. Policies and procedures are interlinked with each other. Procedures are steps to be carried out within a broad policy framework.
D. Method - Manner to perform a task which saves time, efforts, and money.
Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. The method may vary from task to task. Selection of proper method saves time, money and effort and increases efficiency. For imparting training to employees at various level from top management to supervisory, different methods can be adopted. | 
