Two years ago Mohit obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own bread and biscuits manufacturing unit. For this he decided the objectives and targets and formulated action plan to achieve the same. One of his objectives was to earn 50% profits on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a production manager who decided the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirements of workers in the factory throughout the year. Mohit informed Harsh about his sales target for different products, area wise for the fourth coming quarter. 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 workers.

Quoting lines from the above para identify and explain the different types of plans discussed.

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.