Types Of Planning | Classification Of Planning | Planning Example
Planning involves selecting missions and objectives and deciding on the actions to achieve them; it requires decision-making, i.e., choosing a course of action from among alternatives. Plans thus provide a rational approach to achieving preselected objectives.
Planning bridges the gap from where we are to where we want to go. It is also important to point out that planning and controlling are inseparable-the Siamese twins of management . Any attempt to control without plans is meaningless, since there is no way for people to tell whether they are going where they want to go (the result of the task of control) unless they first know where they want to go (part of the task of planning). Plans thus furnish the standards of control.
Read more : Importance Of Planning | Purposes Of Planning
CLASSIFICATION OF PLANNING / TYPES OF PLANNING
Planning is a complex and comprehensive process involving a series of overlapping and interrelated elements or stages, including strategic, tactical, and operational planning.
I. On the basis of content, Plans can be classified as:
A. Strategic Planning
B. Tactical Planning
C. Operational planning
A. Strategic planning establishes master plans that shape the destiny of the firm. An example of strategic planning is when the executive team at Harley-Davidson Inc. planned how to deal with the demographic shift of their customer base becoming much older.
Strategic plans set broad, comprehensive, and longer-term action directions for the entire organization.
• It is the process of deciding on Long-term objectives of the organization.
• It encompasses all the functional areas of business
• It decides major goals and policies of allocation of resources to achieve these goals.
• Done at higher levels of management
• Less detailed because it is not involved with the day to day operations of the organization
B. Tactical planning translates strategic plans into specific goals and plans that are most relevant to a particular organizational unit. The tactical plans also provide details of how the company or business unit will compete within its chosen business area. Middle level managers have the primary responsibility for formulating and executing tactical plans. These plans are based on marketplace realities when developed for a business. Conditions can change rapidly in competitive fields such as a Korean company suddenly developing a substantially lower price sports bike.
- It involves conversion of detailed and specific plans into detailed and specification plans.
- It is the blue print for current action and it supports the strategic plans.
- It is Mid-term term
- It is more detailed because it involves with day to day operations of the organization.
- It is done at middle level of management
C. Operational planning identifies the specific procedures and actions required at lower levels in the organization. If Harley- Davidson wants to revamp an assembly line to produce more sports bikes, operational plans would have to be drawn. In practice, the distinction between tactical planning and operational planning is not clear-cut. However, both tactical plans and operational plans must support the strategic plan such as revamping manufacturing and marketing to capture a larger group of young cyclists..
• It is short term
• It is more detailed because it is involves with day to day operations of the organization.
• Done at lower level of management
• Define what needs to be done in specific areas to implement strategic plans.
– Production plans
– Financial plans
– Facilities plans
– Marketing plans
– Human resource plans
II. On the basis of time period
• Long term planning
- Time frame beyond five years. Long term Plans: >5yrs
- It specifies what the organization wants to become in long run.
- It involves great deal of uncertainty.
- Higher management levels focus on longer time horizons.
- Cover a longer time
- May include a variety of different types of training
Some examples Long term Plans:
• An annual plan, including Fast Start and basic training
• Makeup training sessions
• Den chief training
• Regular monthly roundtables
• Supplemental training
• Personal coaching
We should not overlook the importance of long-range plans in providing a total leadership growth and development program for leaders.
• Intermediate term/ Midterm planning
- Time frame between two and five years. Medium Term Plans: >1 yr but <5yrs
- It is designed to implement long term plans.
• Short term planning
- Time frame of one year or less. Short term Plans: Upto one year
- It provide basis for day to day operations.
- Meet a particular objective in the near future
- Cover a limited area of training
- Answer the question: Are we doing things right?
- Should fit well within and contribute to long-range plans.
• Plans for basic training sessions for new leaders who have just been recruited
• Plans for a den chief training conference
• Plans for training roundtable staff members
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