On the basis of Activity Covered
On the basis of activity covered planning can be classified into corporate and functional planning.
1. Corporate Planning
Planning activities at the top level with long term orientation.It includes setting of objectives, organising, the work, making people and systems to enable to attain those objectives motivating through the planning process and through the plans, measuring performance and so controlling progress of the plan and developing people through better decision making, clearer objectives, more involvement and awareness progress, strategic planning, long range planning and operational planning comes after corporate planning.
2. Functional Planning
Not integrated but segmental; it is derives out of corporate planning.It is under taken for sub-functions within each major function.
On the basis of Importance
On the basis of Importance it can be classified as
1. Strategic Planning
Long term direction of the organisation in which it wants to proceed in future; strategic planning is the process of deciding on objectives of the organisation, on changes, on the objectives, on the resources used to attain these objectives and on the policies that are to govern the acquisition, use and disposition of these resources; more than one year period; risky to plan for shorter period.
It encompasses all functional areas of business and involves analysis of environmental factors.
2. Operational Planning
Tactical/short term planning; the process of deciding the most effective use of the resources already allocated and developing control mechanism to get the work done.
Proactive Planning and Reactive Planning
Proactive involves designing suitable courses of action in anticipation of likely changes in the relevant environment- use broad planning approaches- broad environmental scanning- decentralised control- reserve resources- before environmental changes.
Reactive after environmental changes; made before environmental changes; sometimes not suitable in those conditions; do not remain valid.
Formal Planning and Informal Planning
1. Formal Planning : Well structured process involving different steps; done by separate corporate cell; high level in the organisation professionals in the group; cells go for detailed study of the impact; rational; systematic; well documented and regular.
2. Informal Planning : Small organisations planning process; intuitions; gut feelings rather than systematic evaluation; successful in small organisations.
Standing Plans and Single Use Plans
Once formulated in operation for long time organisational mission and long term objectives, strategies, policies, procedures and rules, e.g., projects, budgets, quotas, targets, etc.
Standing Plan
It may also be termed as single use plans.
On the basis of activity covered planning can be classified into corporate and functional planning.
1. Corporate Planning
Planning activities at the top level with long term orientation.It includes setting of objectives, organising, the work, making people and systems to enable to attain those objectives motivating through the planning process and through the plans, measuring performance and so controlling progress of the plan and developing people through better decision making, clearer objectives, more involvement and awareness progress, strategic planning, long range planning and operational planning comes after corporate planning.
2. Functional Planning
Not integrated but segmental; it is derives out of corporate planning.It is under taken for sub-functions within each major function.
On the basis of Importance
On the basis of Importance it can be classified as
1. Strategic Planning
Long term direction of the organisation in which it wants to proceed in future; strategic planning is the process of deciding on objectives of the organisation, on changes, on the objectives, on the resources used to attain these objectives and on the policies that are to govern the acquisition, use and disposition of these resources; more than one year period; risky to plan for shorter period.
It encompasses all functional areas of business and involves analysis of environmental factors.
2. Operational Planning
Tactical/short term planning; the process of deciding the most effective use of the resources already allocated and developing control mechanism to get the work done.
Proactive Planning and Reactive Planning
Proactive involves designing suitable courses of action in anticipation of likely changes in the relevant environment- use broad planning approaches- broad environmental scanning- decentralised control- reserve resources- before environmental changes.
Reactive after environmental changes; made before environmental changes; sometimes not suitable in those conditions; do not remain valid.
Formal Planning and Informal Planning
1. Formal Planning : Well structured process involving different steps; done by separate corporate cell; high level in the organisation professionals in the group; cells go for detailed study of the impact; rational; systematic; well documented and regular.
2. Informal Planning : Small organisations planning process; intuitions; gut feelings rather than systematic evaluation; successful in small organisations.
Standing Plans and Single Use Plans
Once formulated in operation for long time organisational mission and long term objectives, strategies, policies, procedures and rules, e.g., projects, budgets, quotas, targets, etc.
Standing Plan
It may also be termed as single use plans.
- It applies to activities that do not recur or repeat.
- It deals with "who,what,where,how and how much.
- The examples of standing plans are: projects, budgets,quotas,targets, etc. Its focus is on long term objectives policies, strategies.It is not repeated at regular intervals.
Strategic and Operational Plans
These plans are derived from standing plans; strategic plans define the long term course of action; Operational plans-projects,budgets,minor plans,etc.
Strategic Plan
- Strategic plan begins with the organisation's mission.
- Strategic plan is an outline of steps designed with the goals of the entire organisation as a whole in mind.
- Strategic plans look ahead over the next two,three,five years to move the organisation,where it currently is to where it want to be.
- Strategic plans are prepared by,top management and they become the framework for the low level management.
Operational Plan
- It is the one that a manager uses to accomplish his/her job responsibilities
- It is done at the divisional and sectional levels and majority, there is involvement of supervisors, team leader and managers at different departments.
- Operational plans are designed to support tactical plans.
- Operational plans are ongoing or continuous plans.
Tactical Plan
- It is concerned with what and how the lower level units within each division must do.
- It is concerned with shorter time frames and narrower scopes than strategic plans.
- Short term goals are considered by tactical plan and their time of span is not more than one year.
- It is the responsibility of middle level manager to identify specific tactical actions.
Contingency Plans
- It is the plan to cope up the unpredictable changes of environment and uncertainty.
- These plans are the result of intelligence of managers.
- An intelligent manager always remain ready to face the challenges and keeps other options also open.
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