TYPES OF PLANNING

Plans can be classified on the

basis of the following 1.purpose or mission
2. objectives or goals
3. strategies
4.policies
5.procedures
6.rules
7. programmes
8.budgets

Purpose or missions

The mission or purpose (the terms are often

used interchangeable), identifies the basic
function or task of an enterprise or any part
of it. Every kind of organized operation has,
or at least should have if it is to be
meaningful , a purpose or a mission. In every
social system, enterprises have a basic
function or task assigned to them by the
society. For example , the purpose of a
business generally is the production and
distribution of goods and services

Relationship of planning and

controlling
planning

No
underst
anding
deviati
ons
from
plans

Corrective
actions

Objectives or goals

They represents not only the end point of

planning but also the end towards which the
organizing ,staffing, leading and controlling
are aimed. The nature of objectives and
management by objectives are included.

strategies
Strategies means grand plans made in the
light of what it was believed an adversary
might or might not do. While the term
strategy still usually has a competitive
implications, managers increasingly use it to
reflect broad area of an enterprise operation .
Strategy is defined as a determination of the
basic of long term objectives of an enterprises
and the adoption of course of action and
allocation of resources necessary to achieve
the goals

policies
Policies are statements or understandings
that guide or channels thinking in decision
making. Not all policies are statements they
are often merely implied from the action of
managers
Policies define an area within which a
decision is to be made and ensure that the
decision will be consistent with and
contributes to an objective

procedures
They establish a required method of handling
future activities .they are a chronological
sequence of required actions.They are guided
to action rather than to thinking, and they
detail the exact manner in which certain
activities must be accomplished.
Procedures often cut across the department
line. For example in a manufacturing company
the procedure for handling orders will almost
certainly involve the sales department, the
finance department etc

RULES

Rules spell out specific actions or non

actions, allowing no discretion .they are
usually the simplest types of plans .NO
SMOKING is a rule that allows no deviations
from a stated course of action. Rules specify
the managerial decisions for some actions
must or must not be taken.

PROGRAMMES

Programmers are a complex of goals ,

policies, procedures ,rules , task
assignments, steps to be taken ,resources
to be employed and supported by
budgets ,and other elements necessary to
carry out a given course of action, they are
ordinarily supported by budgets. A minor
programme formulated by a single
supervisor to improve the morale of the
workers.

BUDGETS

A budget is a statement of expected results

expressed in a numerical terms it may be
called as numberized programme. The
financial operating budget is often called a
profit plan .the budget is a fundamental
planning instrument in any company.

MODELS OF STRATEGIC
PLANNING PROCESS

PAGE NO 103 FROM KOONTZ AND

O,DONNEL

Execu
tive
value
s and
vision

IN

-INPUTS
-GOALS
OF
STAKE
HOLDER

Indust
ry
analy
sis

Enter
prise
profits

-mission
objectiv
e
strategic
intent

Present
&future
threats

Develop
ment of
alternativ
e
strategie
s
INTERN
AL
WEAKN
ESS
AND
STRENG

CONT

Evaluatin
g
strategic
choice