Types of plans

Types of plansWhat types of plans do managers use?1.Long-Range and Short-Range Plans

Long-Range and Short-Range Plans

Short-range plans=1 year or less

Intermediate-range plans=1 to 2 years

Long-range plans=3 or more years

Long-range plans/long-termexamines major capital expenditures such as purchasing equipment and facilities, and implements policies and procedures that shape the company's profile to match top management's ideas. When short-term and medium-term planning is successful, long-term planning builds on those achievements to preserve accomplishments and ensure continued progress.

Short-range plans/short-termShort-term planning looks at the characteristics of the company in the present and develops strategies for improving them.Examples are the skills of the employees and their attitudes.

People vary in their capability to deal effectively with different time horizons.

Higher management levels focus on longer time horizons.2.Strategic and tactical plans

ORGANIZATIONAL PYRAMIDStrategic plansSet broad, comprehensive, and long-term action directions for the entire organization.

are designed with the entire organization in mind and begin with an organization's mission. Strategic plans are long term, they are also dynamic.Tactical planssupport strategic plans by translating them into specific plans relevant to a distinct area of the organization.are concerned with the responsibility and functionality of lower-level departments to fulfil their parts of the strategic plan.In business, tactical plans often take the form of functional plans.

Functional plans-indicate how different operations within the organization will help advance the overall strategy. Functional plansProduction plans-dealing with work methods and technologies;Financial plans-dealing with money and capital investments;Facilities plans-dealing with facilities and work layout;Logistics plans-dealing with selling and acquiring resource inputs;Marketing plans-dealing with selling and distributing goods and services;Human resource plans-dealing with building a talented workforce.3.Operational plansDefine what needs to be done in specific areas to implement strategic plans.are focused on the specific procedures and processes that occur within the lowest levels of the organization. Operational plansSTANDING PLANS -Policies and procedures

SINGLE-USE PLANS -BudgetsPolicies and proceduresPolicies and procedures that are designed for repeated use.PolicyBroad guidelines for making decisions and taking action in specific circumstances.Rules or procedurePlans that describe exactly what actions are to be taken in specific situations.Budgets and project schedulesSingle-use plansOnly used once to meet the needs and objectives of a well-defined situation in a timely manner.Budgets Single-used plans that commit resources to activities, projects, or programs.Projects One-time activities that have clear beginning and end points.