TYPES OF PLANS

Planning may be of different types. We can classify some of the important types of plans according to the nature of planning below:

  1. a.      Financial or Non-Financial Plans 
  •  Most plans cannot be translated into action if there is no finance.
  •  Planning loses all its significance if sufficient financial resources are not mobilized.
  •  Plans that require financial resources are considered financial plans.
  •  Plans relating to the physical resources of an organization may be called nonfinancial plans.
  1. b.      Formal and Informal Plans 
  • More thinking by managers refers to informal plans.
  • . When an informal plan is finalized and prepared for implementation, it is considered to be a formal plan.
  1. c.       Specific and Routine Plans 
  • Any plan made with a particular object is known as a specific plan.
  • Day-to-day normal activities require some type of regular plan known as a routine plan.
  1. d.      Strategic and Functional Plans 
  • Strategic planning is the overall planning of the enterprises objectives determined by the top management.
  • A plan made in a functional area like production, purchase, marketing is referred to as a functional plan.
  1. e.       Long-range and Short-range Plan 
  • It depends upon the organizational structure, nature of business, the kind of industry, etc.
  • In general, a short-term plan refers to a period covering six to twelve months
  • A long-range plan usually involves a time interval of between three and five years. 
  • The modern concern is to plan for a decade or two.

        1. f. Administrative and Operational Plans 

  • Administrative plan provides the base for operative plans. 
  • Administrative planning is done by the top and middle – level management. 
  • Operational planning by the lower-level management.