Plans, Categories and Types?
A plan is the output or results of the planning process. It is a detailed proposal or strategy for achieving a specific goal. It outlines the steps, resources, and timeline needed to reach an objective. For example, a business plan might include market analysis, financial projections, and a marketing strategy1.
Types of Plans
A plan is a detailed proposal for achieving something. It represents an intention or decision about future actions. Plans can be categorized into the following types:
These plan types represent a temporal set of intended actions or decisions through which one expects to achieve a goal.
Categories of Plans
Planning processes at various levels in an organization results in the creation of different categories of plans, such as: business plan, strategic plan, tactical, and operational plans. A plan commits employees in different parts of the organization and their resources to specific actions. While there are possible number of type of plans, the four major types of plans include:
Despite their differences and horizon, strategic, tactical and operational plans are integrally related and must be managed systematically for the organization to be successful.
A plan is the output or results of the planning process. It is a detailed proposal or strategy for achieving a specific goal. It outlines the steps, resources, and timeline needed to reach an objective. For example, a business plan might include market analysis, financial projections, and a marketing strategy1.
Types of Plans
A plan is a detailed proposal for achieving something. It represents an intention or decision about future actions. Plans can be categorized into the following types:
- Objectives:
- Objectives are future-oriented plans that provide direction for subsequent activities.
- They can be organized in a hierarchy relative to an organization’s goals.
- Primary objectives are determined by top management, while each department has its own objectives within the framework of basic goals.
- Policies:
- Policies are standing plans or answers to recurring questions.
- They are continuing decisions that apply to repetitive situations and guide managerial actions.
- Policies provide a continuous framework for executive actions on recurrent managerial problems.
- Example: A firm may have a policy of promoting from within, giving preference to existing employees if they meet job requirements.
- Rules:
- Rules are the simplest type of plan, requiring specific actions to be taken or not taken in certain situations.
- They are more rigid and specific than policies, providing no discretion in their application.
- Rules are essential for discipline and smooth business operations.
- Example: A no-smoking rule in a factory applies to everyone, including top executives.
- Procedures:
- Procedures are standing plans that act as means of implementing policies.
- They lay down the method by which work is to be performed in a standard and uniform way.
- Example: A sales department may have a procedure to execute all orders within 48 hours, prescribing a sequence of steps from order receipt to dispatch.
- Programs:
- Programs are single-use plans consisting of a sequence of activities designed to implement policies and accomplish objectives.
- They enable managers to prepare systematically for difficulties before they arise.
- Programs provide a step-by-step approach to guide actions necessary to reach predetermined targets.
- Example: A marketing campaign may have detailed programs for personal selling, advertising, and sales promotion to achieve sales goals.
- Schedules:
- Scheduling is the process of establishing the time sequence of work to be done.
- It specifies when each action should take place and is an integral part of programming.
- Example: Once tasks and responsible persons are clear, scheduling ensures timely execution.
- Budgets:
- Budgets are projections defining anticipated costs of attaining an objective.
- They appraise expected expenses against anticipated income for a future period.
- Budgets may be stated in terms of time, materials, money, or other units required to perform work and achieve specified results.
- Forecasting:
- Forecasting is a systematic attempt to predict the future based on known information.
- Planning decisions are based on intelligent and rational forecasting of future trends, such as price trends.
These plan types represent a temporal set of intended actions or decisions through which one expects to achieve a goal.
Categories of Plans
Planning processes at various levels in an organization results in the creation of different categories of plans, such as: business plan, strategic plan, tactical, and operational plans. A plan commits employees in different parts of the organization and their resources to specific actions. While there are possible number of type of plans, the four major types of plans include:
- Strategic Plan - A strategic business plan helps your business outline long-term goals and fulfill the big vision.
- Tactical Plan - Tactical planning supports strategic planning, and involves the development of tactical plans. Tactical plans are about what is going to happen; they typically involve many focused, specific and short-term (action) plans, where the actual work is being done.
- Operational Plan - Operations plans define what processes need to be finished to achieve the strategic goals. The goal of an operations plan is to define how all departments join efforts to achieve the mission and vision.
- Contingency Plan - Contingency plans are made when something unexpected happens, or when something needs to be changed.
Despite their differences and horizon, strategic, tactical and operational plans are integrally related and must be managed systematically for the organization to be successful.