Types of Plan – Introduction to Management | Third Semester

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PlanningDifferent types of Plan
Principles of Management (POM)
Third Semester | Second year
BSc.CSIT | Tribhuvan University (TU)

Types of Plan
A plan would include ways to accomplish the goals, a timetable for the planned action, and a cost projection. A plan serves as the foundation for all organizational activities. From the analysis of information, the manager visualizes and formulates the schedule of activities and allocates the resources needed for reaching goals and objectives. A plan is a document stating the goals, outlining the action-oriented strategies to attain these goals and assigning organizational resources to attain them. There are different types of plan on the basis of hierarchy, use and flexibility.

Types of Plan

On the Basis of Hierarchy:

  • Strategic Plan: Strategic plans are also known as “grand plan”. It is long term plan prepared by the top level management. It outlines decisions of resources allocation, priorities, and action steps necessary to reach strategic goals. It aims at internal strength and weakness to change in the external environment.
  • Tactical Plan: It is the subdivision of strategic plan which is prepared by departmental manager (middle level manager). They are concerned more with actually getting things done that with deciding what to do. It is based on priority of work and focuses on allocating resources on the basis of program. It is medium term plan prepared to perform activities like production, finance, marketing, personnel, and others.
  • Mechanization/Operational Plan: It is short term plan prepared by the lower level manager. It is consistent with tactical plan. It is specific plan of each and every activities of the unit. It involves a schedule of each unit of work to implement a tactical plan. It concentrates on the best use of available resources.

On The Basis of Use:

  • Single Use Plan: Such a plan is prepared for a specific purpose in non programmed situation. It is prepared for non-repetitive activities. After completion of the defined objective such a plan becomes worthless. The example of such a plan is program and budget.
  • Standing Use Plan: Such a plan is prepared for programmed decision making situation in an organization. This plan gives broad guidelines for repetitive activities. Such plan once developed will be implemented in the organization to achieve organizational objectives in different activities. The examples of such a plan are objectives, rules, policies, procedures and strategy.

On the Basis of Flexibility:

  • Specific Plan: Specific plans are clearly defined plans. It is developed for a particular department or unit about the activities to be performed. In this plan, members of an organization are clear about the task to be performed and the resources to be used. It is a tool for the systematic implementation of the general plan.
  • Flexible Plan: Flexible plans are directional plans. It is changeable on the basis of time and situation. It is not specific in terms of procedures and allocation of resources. This type of plan provides only guidelines to the members. It can be modified on the basis of the facility and resources.
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