Planning -2

Types of plans
 Types of Plans

• Long range Vs Short range

• Strategic Vs Operational

• Corporate Vs Functional

• Proactive Vs Reactive

• Standing Vs Single Use

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 Long range Vs Short range
Long range plan Point of Short range plan
distinction

Covers many years & Meaning Covers less than one year
affects many departments and is more specific &
of an organization detail
5 yrs or more Time Up to one year

Organizations linkage Primary Linkage with various

with external factors focus parts of an organization
Mission ,long term goals Deals with Current operations of
and strategies organization
Top management Prepared Lower level executives
by

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 Strategic Vs Operational
Strategic Plan Point of Operational Plan
distinction

5 years or more Time Under one year

horizon

Adapt to external Purpose Implement internal goals

environment based on
internal strengths
Total institutional Activity Internal tasks &
performance controlled Operations
Top management Level Middle & lower level
involved

Primarily judgmental Basis for Exact data & Standards

planning used

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 Corporate Vs Functional
• Corporate Plan:
– A comprehensive plan that outlines the broad
objectives of a company as a whole and develops plans
to achieve those objectives
– Holistic and Unified focus
– Focus on organizational performance

• Functional Plan:
– Is unit planning and deals with different departments
in an isolated manner.
– Focus on departmental performance

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 Proactive Vs Reactive
• Proactive Planning:
– Managers challenge the future, anticipating future
contingencies and get ready with alternative
routes for unforeseen circumstances
• Reactive Planning:
– Organizations react to events as and when they
arise

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 Standing Vs Single Use

• Standing Plans • Single Use plans

– Developed for – Developed to carry
activities that recur out a course of
regularly over a action that is not
likely to be
period of time repeated in future
• Ex: • Ex:
– Objectives, Policies, – Programmes,
Procedures, Methods, Schedules, Projects,
Rules Budgets

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Hierarchy of Plans

Purpose
or Mission

Objectives

Strategies

Policies: Major or Minor

Procedures

Rules

Programs: Major or minor and supporting

Budgets: numberized programs

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