TYPES OF PLANS plan 1 Objectives Neither Single Use not Standing Determine what is to be done Is the end result of planning All activities are guided towards objectives Serve as guide for overall business planning Define the future state of affairs which the organisations strives to realise These are usually set by top level management 2 Strategy Neither Single Use not Standing Is the blueprint of the business and provides outline of Strategy is influenced by business environment Strategy directs future decision making and scope in long A strategy provides the broad contours of an organisation plan business run in business Strategies usually take the course of forming the organisation s identity in the business environment Major Strategic decisions will include decisions like whether the organization will continue in same kind of business or combine new lines of activities or seek to acquire dominant position in the same business 3 Policies Standing plan Based on objectives Guides managers to implement strategy Policy is organisation s customised way of handling problems may function Policies define broad parameters within which a manager 4 Procedures Standing plan Sequence of steps to carry on different activities Generally meant for insiders only Are mostly in a chronological order The sequence of steps or actions to be taken to enforce a policy and attain pre determined objectives Exact manner in which an activity has to be done 5 Methods Standing plan Standardised way in which a task has to be performed Selection of right method saves time money and increases the efficiency Methods vary from task to task 6 Rules Standing plan Code of conduct or general instructions in any organisation Specifies what to do and what not to do Are rigid stringent and compulsive in nature They are usually the simplest type of plan 7 Programmes Single Use Plan Detailed statement about a project Is a combination of objectives policies procedures and rules Is prepared for various activities Ensure systematic working in an organisation Include entire gamut of activities In programme minutest details are worked out its procedure rules budgets within the broad policy framework 8 Budget Single Use Plan Statement of expected result expressed in numerical Serves as standard for measuring and comparing actual terms performance Quantifies future facts and figures Budgets are prepared by managers at every level It is a controlling device from which deviations can be taken care of Expressed in numerical terms
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