A standing plan is usually developed once but is modified from time to time to meet business needs as required. Which of the following is a standing plan?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Policy
Option (1) Project — Incorrect. A project is a single-use plan. It is made for a one-time event and is not repeated.
Option (2) Budget — Incorrect. A budget is also a single-use plan. It is prepared for a specified period and then replaced by a new one.
Option (3) Strategy — Incorrect. A strategy is a comprehensive plan for reaching the organisation’s long-term objectives in a changing environment. It is not a plan for routine decisions that come up again and again.
Option (4) Policy — Correct. A standing plan is used for activities that occur regularly. It is made once and changed only when needed. Policies, procedures, methods and rules are standing plans. A policy is a general guide to decisions in a certain situation, such as the admission policy of a college.
NCERT (2026-27 Edition): “Standing Plan: A standing plan is used for activities that occur regularly over a period of time. It is designed to ensure that internal operations of an organisation run smoothly. Such a plan greatly enhances efficiency in routine decision-making. It is usually developed once but is modified from time to time to meet business needs as required. Standing plans include policies, procedures, methods and rules.” “Single-use Plan: … These plans include budgets, programmes and projects. …” |