Planning & Types of PlanBy:-

Abdul Khalique

MBA

(Finance & Marketing)

Planning

What?

When?

How?

Why?

Who?

Definition “Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it.”

- Koontz and O’Donnell.

Definition “Planning is deciding in advance what is to be

done.”-Haimann

Types of Plan

On the Basis of Time

Long Term

Medium Term

Short Term

On the Basis of Managerial Levels

Top Level

Middle Level

Lower Level

On the Basis of Broadness

Corporate Level

Departmental Level

On the Basis of Use

Standing or Repeatedly

used

Vision, Mission, Goal & Objectives

Policies

Procedures

Rules

Strategy

Special or Single Use or Adhoc Plans

Programmes

Budgets

Projects

Schedules

1. On the Basis of

Time

i. Long Term Plans:a) More than 3 years.

b) Formulated by Top level managers.

ii. Medium Term Plans:a) In between 1 to 3 years.

b) Formulated by Middle level managers.

iii. Short Term Plans:a) Less than a year. (half yearly, monthly,

quarterly, etc.)

b) Formulated by Low level managers.

2. On the Basis of

Managerial Levels

i. Top Level Plans:a) Directors, General Managers

b) Objectives, Policies, Budget, etc.

c) Mostly long term plans.

ii. Middle Level Plans:a) Departmental managers. (Finance, Purchase,

Production, Personnel, etc)

b) Mostly medium term plans.

iii. Lower Level Plans:a) Foreman or Supervisor.

b) Short term plans.

3. On the Basis of

Broadness

i. Corporate Level Plans:a) Prepared for whole organisation (Long Term)

ii. Departmental Level Plans:a) Prepared by various department.

b) To tackle immediate or near future problems.

4. On the Basis of Use

i. Standing or Repeatedly Used Plans:a) Vision, Mission & Objective:

• Vision- Dream that an individual or company wants to be in future.

• Mission/ Goal- what an individual or a company wants to provide or achieve.

• Objectives- Special target to be achieved by the organisation.

b) Policies: Limits or boundaries or guidelines under which an organisation make a decision.

c) Procedures: Sequence of any work performance.

d) Rules: Plan that tells what is to be done and what and what is not to be done in a particular situation.

e) Strategy: Military word which means to defeat enemy by systematic plan. In business it means a systematic plan to overcome the future problems.

Cont…

ii. Special or Single Use or Adhoc Plans:Formulated for one time use or to tackle the special

situation. Like-

Programme

Budget

Projects

Schedules

Queries?