Planning is based on the theory of “ thinking before acting“. Planning is deciding in advance what is done. When a manager plans, he projects a course of action for the future, attempting to achieve a consistent, coordinated structure of operations aimed at the desired results.
Types of planning
¡ 1. On the basis of Nature
Ø Operational Plan
Ø Tactical plan
Ø Strategic plan.
2. On the basis of managerial level.
Ø Top level plans
Ø Middle-level plans
Ø Lower level plan
3. On the basis of time.
Ø Long-term plan
Ø Intermediate plan
Ø Short term plan.
4. On the basis of use
Ø Single plan
Ø Standing plan
1. On the basis of Nature.
1. Operational Plan.
· The operational plan is the plans which are formulated by the lower management for short term period of up to one year. It is concerned with the day to day operations of the organization. It is detailed and specific. It is usually based on the past experiences. It usually covers functional aspects such as production, finance human resource.
2. Tactical Plan
¡ The tactical plan is the plan which is concerned with the integration of various organizational units and ensures implementation of strategic plans on day to day basis. It involves how the resources of the organization should be used in order to achieve the strategic goals. The tactical plans are also known as coordinative or functional plan.
3. Strategic Plan
¡ The strategic plan is the plan which is formulated by the top level management for a long period of time for five years or more. They decide the major goals and policies of to achieve the goals. It takes a note of all the external factors and risks involved and makes a long-term policy of the organization. It involves the determination of strengths and weakness, external risks, mission, and control system to implement.
2. On the basis of managerial level
1. Top level plan
· Plans which are formulated by general managers and directors are called top-level plans. Under these plans, the objectives, budget, policies etc. for the whole organization are laid down. These plans are mostly long-term plans.
2. Middle-Level Plan
¡ The managerial hierarchy at the middle level includes the departmental managers. Corporate has many departments like purchase department, sales department, finance department, personnel department etc. The plans formulated by the department managers are called middle-level plans.
3. Lower-Level Plan
· These plans are prepared by the foreman or the supervisors. They take the existence of the actual work and the problems connected with it. They are formulated for a short period of time and called short-term plans.
3.On the basis of time
1. Long-Term Plan
· Long term plan is the long-term process that business owners use to reach their business mission and vision. It determines the plan for business owners to reach their goals. It also reinforces and makes corrections to goals as the plan progress.
2. Intermediate plan
· Intermediate planning covers 6 months to 2 years plans. It outlines how the strategic plan will be perused. In the business, intermediate plans are most often for campaigns.
3. Short term plan
· Short term plan involves plans for a few weeks or at most a year. It allocates resources for the day to day business development and management within the strategic plan. Short-term plans outline objectives necessary to meet intermediate plans and the strategic planning process.
4. On the basis of use
· Single plan:
These plans are connected with some special problems. These plans end the moment of the problems to be solved. They are not used, once after their use. They are further recreated whenever required.
· Standing plan: These plans are formulated once and they are repeatedly used. These plans continuously guide the managers. That is why it is said that a standing plan is standing guide to solving problems. These plans include mission, policies, objectives, rules, and strategy.
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