Management Planning: Types of Plans

Study Notes

Strategic plans apply to the entire organization, establishing overall goals and positioning the organization in its environment.
Operational plans specify details on how to achieve overall goals, covering short time periods.

Long-term plans have a time frame beyond three years, although this definition has changed with increasingly uncertain environments.
Short-term plans cover one year or less.
Specific plans are clearly defined with little room for interpretation.
Directional plans are flexible, setting general guidelines without limiting courses of action.
Single-use plans are one-time plans for unique situations.
Standing plans are ongoing, providing guidance for repeated activities.

Traditional goal setting involves top-down overall goal establishment, broken down into subgoals for each level.
Subgoals constrain subordinate behavior, assuming top managers know what is best for the organization.

Contingency factors in planning include degree of environmental uncertainty and length of future commitments.
Traditional, top-down approach involves planning by top managers, with formal planning departments and plans flowing down to lower levels.
Inclusive approach involves employees at each level developing plans suited to their needs, leading to greater sense of planning importance and more effective plan usage.