Principles of Management CLEP Practice Exam

Which type of plan deals with issues that recur frequently within an organization?

1. Standing plan

2. Strategic plan

3. Short-term plan

4. Informal plan

The correct answer is: Standing plan

A standing plan is designed to address issues and situations that occur regularly within an organization. These plans provide a consistent approach to handling recurring events, allowing for efficiency and standardization in decision-making. They include policies, procedures, and rules that guide employees in their daily activities and operations. By having standing plans in place, organizations can ensure that similar problems are handled in the same manner every time they arise, which helps maintain order and predictability. For example, a business might have a policy for handling customer complaints that outlines specific steps employees should take whenever a complaint is made. In contrast, a strategic plan focuses on long-term objectives and the overall direction of the organization, making it broader and not designed specifically for recurring issues. Short-term plans are more immediate and tactical, typically covering a shorter duration and specific operational goals rather than ongoing issues. Informal plans are unstructured and lack the consistency provided by formal processes like standing plans, which can lead to variability in how situations are managed.