4. Every departmentNeeds raw material Send a purchase requisition Purchase department Of materials required Quantity, type & quality specifications

5. Purchase Department Consolidate requirements Various departments A combined order Purchase Department maintains lists Send to suppliers Regularly collects quotations Sends copy of purchase order To receiving & inspecting department Of Sends To

6. Receiving Department Goods received with order placed Report If any discrepancy arises Directly reported to Purchase Department If order is proper, correct & according to requirements compares To Sends Purchase Department

7. After Receiving the purchased material Receiving & inspecting department. Accounting department Send To Satisfactory report Purchase Department To For Payment

8. Payment to suppliers Accounting department Check bills

9.  Basis of control  Consistency  Standardisation  Coordination  Rigidity  Constant reviews

10. A plan that lays down a required course of action in relation to a particular situation. Mainly the decisions made by the management that what is to be done and how it is to be done. Definite and rigid. Allows no discretion to the subordinates. Such as : NO SMOKING IN A FACTORY. A RULE TO MAKE PAYMENT WITHIN 21 DAYS.

11. Main thing – Prescribes limits of acceptable behaviour of members. Enable managers to predict behaviour of subordinates & how will they act in a particular situation. Channels worker’s behaviour in desirous direction.

12. No forcible application of rules. Try to formulate only necessary rules. Explain rules in proper & correct manner to all whether on any management level.

13.  Forcible application imply : Disappoints subordinates and they would leave the organisation for atleast their self esteem.  Proper implication imply: Every employee would get a chance to think freely for sometime but within certain& defined limits.