Question

“A company recruits fresh engineers only from top institutes like IITs each year”. This represents which type of plan:

• A. Policy
• B. Procedure
• C. Strategy
• D. Rule

Hint:

Difference between Policy and Rule:

• Policy provides flexibility and guidance.
• Rule provides strict instructions with no flexibility.

Answer 1

The Correct Option is A

Concept:
Plans are predetermined courses of action that guide organizational decisions and activities. Different types of plans are prepared according to organizational needs. Major types of plans include:

• Objectives
• Policies
• Procedures
• Rules
• Strategies
• Programmes
• Budgets

A policy provides broad guidelines for managerial decision-making.

Step 1: Understanding the meaning of Policy.
A policy is a general statement that guides managers and employees while making decisions. Policies:

• Provide direction
• Maintain consistency in decisions
• Help in achieving organizational objectives

Policies allow some flexibility while taking decisions.

Step 2: Analyzing the statement given in the question.
The company has decided to recruit engineers only from top institutes such as IITs. This acts as a guideline for recruitment decisions followed every year. It directs the HR department regarding:

• Where recruitment should be conducted
• Which institutes should be preferred
• What recruitment standard should be maintained

Thus, it represents a recruitment policy.

Step 3: Why other options are incorrect.

• Procedure: Specifies the exact sequence of steps to perform a task.
• Strategy: Refers to long-term plans prepared to face competition or achieve major objectives.
• Rule: A rule strictly specifies what must or must not be done without flexibility.

Since the statement provides a broad guideline rather than strict instructions or sequential steps, it is a policy.

Step 4: Final conclusion.
Therefore, the type of plan represented in the statement is: \[ \boxed{\text{Policy}} \]