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Questions and Answers
What is the primary purpose of a strategic plan?
What is the primary purpose of a strategic plan?
Which type of plan focuses on day-to-day activities like production schedules and sales forecasting?
Which type of plan focuses on day-to-day activities like production schedules and sales forecasting?
What is the time horizon typically associated with tactical plans?
What is the time horizon typically associated with tactical plans?
Which type of plan is specifically designed to handle unforeseen events that can disrupt normal operations?
Which type of plan is specifically designed to handle unforeseen events that can disrupt normal operations?
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What do operational plans primarily focus on?
What do operational plans primarily focus on?
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Which plan involves defining intermediate steps within the broader framework established by the strategic plan?
Which plan involves defining intermediate steps within the broader framework established by the strategic plan?
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Study Notes
Principles of Management: Planning
Planning is a fundamental principle when it comes to managing any organization. It's considered one of the most important tasks of managers because it helps them develop procedures and determine how they will achieve their goals. In essence, planning involves deciding what needs to be done and establishing policies and procedures for doing things right.
There are several types of plans involved in organizational planning. These include strategic, tactical, operational, contingency, and emergency plans:
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Strategic plan: This lays out the direction for the company over a period that may go from three to ten years into the future. It sets goals and objectives of where the business wants to go with specific strategies laid out to get there.
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Tactical plan: A shorter version of the strategic plan, this type of plan typically lasts between six months and two years. Tactical plans define intermediate steps within the broader framework established by the strategic plan.
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Operational plan: Also known as action plans, these cover day-to-day activities such as production schedules, sales forecasting, budgeting, revenue generation, etc., which help departments accomplish their objectives in line with overall corporate strategy.
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Contingency plan: Designed to handle unforeseen events like natural disasters, accidents, political uprisings, and other incidents that can disrupt normal operations. Contingency plans establish alternative courses of actions so organizations aren’t caught unprepared if something goes wrong.
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Emergency plan: Similar to a contingency plan, except more focused on immediate responses during crisis situations rather than recovery efforts following the resolution of a disruptive event.
Each level of the planning process builds upon the previous one. For instance, once you have your strategic plan in place, you create your tactical plan based off of it, and so forth down the line until you arrive at your daily operation plan. By effectively implementing these various types of plans, businesses ensure consistency across all levels—from broad visions down to granular details—which fosters better resource allocation and cost savings.
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Description
Test your knowledge on the different types of plans involved in organizational planning such as strategic, tactical, operational, contingency, and emergency plans. Understand the significance of each plan and how they contribute to the overall management process.
