Read this article to learn about the various types of plans in management or the business…
Planning is a type of pervasive function which means it is not the job of top-level managers only but managers working at various levels perform planning function. The plans structured by top-level managers may differ from the plans placed by a middle and lower level of managers.
The different types of plans or various plans formed by the different level of managers:-
Objectives are like an end towards which the activities are governed. They are the end result of every activity. So, the various objectives are:-
(a) It must be measured in quantitative terms;
(b) It should be related to individual activity;
(c) It should not be related to the activity or should be related to the results;
(d) It must have a time limit for the accomplishment of objective;
(e) It must be feasible or achievable.
For Example, the increase in sale by 20% or decrease in rejections by 4%.
Features of Objectives:
(a) All activities are managed towards objectives.
(b) It is the end or last result of planning.
(c) It helps to regulate what is to be done.
A strategy is a complete plan to achieve organizational objectives. The elements of the strategy are:-
(a) Combining all the resources for achieving the objectives.
(b) Explaining long term goals.
(c) Managing a specific course of action.
Strategy development is a job of top-level individuals and it must understand and scan clearly the business environment before framing the strategy of the business.
The important decisions in strategy are whether to introduce a new product or not. If to introduce then describe us how, researching out customers for your products, target our customers, innovate our existing products, etc. All the decisions are significantly influenced by the business environment.
The strategy explains future decisions regarding the organization scope and direction in the long run. For Example, Choice of sales promotion techniques, channels of distribution, choice of best advertising media, etc.
Features of Strategy:
(a) Blueprint of the business.
(b) The strategy is affected by the business environment.
A policy can be explained as organizations’ general response to a particular situation or problem. In general words, it is the organization’s own way of managing the problems. Policies can be made at every level because of the managers at every level need to predetermine or decide the way of managing the situation and policy acts as a guide to take decisions in an unanticipated situation.
Policies always motivate initiatives of workers because managers have to deal with the way of handling and the situations are decided in consultation with the workers.
For Example, a college may have a policy of issuing admission form only to students who have more than 65% marks.
Features of Policy:
(a) Guides employers to execute strategy.
(b) Based on targets or objectives.
Procedures have required the steps established in advance to manage future conditions. The series of steps to be followed by workers in different situations must be prearranged so that every person follows the same steps. The procedures can be explained as the perfect manner in which an activity has to be achieved.
For Example, The procedure or process for admission in a particular college can be:
(a) Create a file for applicants;
(b) Accept admission forms and put them in a file;
(c) Ask for other certificates (like TC, Migration, etc) to verify marks or score of students;
(d) Put those valid documents also in the file;
(e) Give the file in admission cell.
Features of Procedures:
(a) Series of steps to carry on various situations.
(b) It can be followed by chronological order.
Rules spell out non-actions or special actions of the employees. There is no caution allowed in rules, i.e, they must be followed strictly and if rules are not followed then harsh actions can be taken against workers who are disobeying the rules.
Rules are made to create an environment of discipline in the business organization. For Example, there can be a rule of no drinking or smoking in the organization. Rules are functionally made for the employees and employees cannot make any changes in them.
Features of Rules:
(a) Code of conduct in an organization.
(b) It clarifies what to do and what not to do.
(c) They are stringent, rigid, and compulsive in nature.
Programmes are a combination of policies, procedures, rules, and goals. All these plans together form a program. The programmes are made to manage the activities of an organization in a systematic manner. The programmes originate relation between goals, policies, and procedures.
The programmes are made by different levels of management. A primary programme is created by the top level of management and others are prepared by the rest of the levels.
For Example, the development of new products, the construction of a shopping mall, etc.
Features of Programmes:
(a) It is prepared for various business activities.
(b) Manage a detailed statement about a project.
(c) It is a combination of procedures, rules, objectives, and policies.
(d) Organize systematic working in the organization.
A method is a format of a systematic or formalized way of doing repetitive or routine jobs. The superiors decide to advance the common method of doing a job. So, that,
(a) There is no confusion in the minds of workers;
(b) There can be equality in the actions of the workers;
(c) These help in applying the techniques of simplification and standardization.
Features of Methods:
(a) Methods are different from task to task.
(b) Follow the process of standardization.
(c) Selection of right method saves time and money and also increases efficiency.
Budget is the fixed statement of expected results in numeric terms. In budgets, the solutions are always measurable and most of the period these are financial in nature but it does not mean that a business company prepares the only financial budget.
Along with the financial budget, the company prepares capital and operational budget also. Budgets are prepared by every level of superiors but operational budget is prepared by a lower level of managers.
For Example, Sale budget:
Sales in-unit = Rs. 2, 00, 000
Price in-unit = Rs. 20
Total sale budget = Rs. 40, 00, 000.
Features of Budget:
(a) Budgets are prepared by every level of superiors.
(b) Estimates future facts and figures.
So, finally, this is the explanation of types of plans. I think your concept would have been cleared.