Types of Plans
Objectives can be said to be the desired future position that the management would like to reach. Objectives should be SMART i.e. specific, measurable, achievable, relevant and time bound. Objectives should be set in all the major areas of the business.
A strategy provides the broad contours of an organization’s business. It refers to future decisions defining the organization’s direction and scope in the long run. A strategy is a comprehensive plan for accomplishing organization objectives.
Policies are general statements that guide thinking or channelize energies towards a particular direction. They are guides to managerial action and decisions in the implementation of strategy. Policies define the broad parameters within which a manager may function. The manager may use his/her discretion to interpret and apply a policy.
Procedures are routine steps on how to carry out activities. They contain the details of the exact manner in which any work is to be performed. They are specified in a chronological order.
Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed.
Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken.
Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required and the budget to implement any course of action. These will include the entire group of activities.
A budget is a statement of expected results expressed in numerical terms. It is a plan which quantifies future facts and figures. Budgets can be sales budget, production budget, cash budget etc.
Single use plans and Standing plans
A plan is a specific action proposed to help the organization achieve its objectives. It is a document that outlines how goals are going to be met.
Single use plans
Single use plans are one time plans used for one time activities which are not likely to repeat. These are for meeting the needs of unique situations. Single use plans can be made for one day to few months depending on the length of the event or project in hand.
Standing plans also known as repeat use plans are used for repeating situations and are used for years with updating, revisions and modifications.