Week 6

Planning
NATURE, TYPES AND LEVELS OF PLANNING

NATURE OF PLANNING
 Planning is a vital component in the operations of

a business. Planning promotes several positive
business results. As Benjamin Franklin said, "If you
fail to plan, you plan to fail”.
It is imperative for us to know and understand the
following importance of planning in the organization:
1. Planning provides direction to all of the

organization’s human resources – both managers
as well as employees.
2. Planning reduces uncertainty; anticipates

changes and their impact
It is imperative for us to know and understand the
following importance of planning in the organization:
3. Planning minimizes wastes, negative practices,

ineffectiveness and inefficiencies
4. Plans may be used for controlling. It is now time

to define planning.
 Planning is a process that involves the setting of the
organization’s goals, establishing strategies for
accomplishing those goals, and developing plans
of action or means that managers intend to use to
achieve organizational goals. Planning starts with
setting a company’s mission and vision together
with its goals
 Missionis the basic purpose of an organization and
range of their operations while Vision is a mental
image of what the organization will be in the future
as desired by the company management and
employees. Goal setting is the identification of
targets or desired ends that management wants to
reach.
Steps in Planning
Steps in Planning
TYPES OF PLANS
1. Strategic Plans – plans that establish the

organization’s overall goals and apply to the
entire firm; they are broad in scope and are
the responsibility of the CEO, President, and
General Manager of the company
TYPES OF PLANS
2. Tactical Plan - middle level management

plan which refers to procedures and
transformation of strategic goals/plans with
specific goals
-specific actions to take address a problem o
achieve goal
TYPES OF PLANS
3. Operational Plan – plans that apply to a

particular unit area only; the scope is narrow;
achievement of company goals may not be
achieved if operational plans are not clear
TYPES OF PLANS
4. Long term plans – plans that go beyond

three years; everyone must understand the
organization’s long term plans to avoid
confusion that may divert the organization’s
members attention
TYPES OF PLANS
5. Short term plans – plans that cover one year

or less; such plans must lead toward the
attainment of long term goals and are the
responsibility of the unit/department heads
TYPES OF PLANS
6. Single use plans – plans used or stated once

only as these applies to the entire organization
7. Standing plans – plans that are ongoing;

provide guidance for different activities done
repeatedly
TYPES OF PLANS
8. Directional plans – plans that are flexible or

give general guidelines; although flexible and
general, these plans must be related to the
strategic plans
TYPES OF PLANS
9. Specific plans – plans that are clearly

stated and which have no room for
interpretation; language must be very
understandable
“ PLANNING AT
DIFFERENT LEVELS IN
THE FIRM ”
Top Level Management Planning
(Strategic Planning)
 As earlier mentioned, top level managers are the ones

conducting the strategic planning for the organization.
This includes coming up with decisions regarding the
organization’s long term goals and strategies. The top
level managers are the CEO, company presidents or
the company’s senior executives. Strategic planning
centers on long term and broad view plan of the
company.
Middle Level Management Planning
(Tactical Planning)
 Middle level managers are the ones responsible for

making the tactical plan. Tactical plans are usually
actualized in the departmental areas like marketing,
production, finance, personnel and the like.
 Tactical planning happens in real time seeking short
term outcomes.
Frontline/Lower Level Management
Planning (Operational Planning)
 Front line or Lower level managers are the managers

who are closest to the core or those who are directly
involved in the day to day operations of the business.
They are responsible for making the operational plan,
as in many cases they are the ones involved in the
customer facing activities of the organization
THANK YOU!

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Planning

NATURE, TYPES AND LEVELS OF PLANNING

 Planning is a vital component in the operations of

1. Planning provides direction to all of the

2. Planning reduces uncertainty; anticipates

3. Planning minimizes wastes, negative practices,

4. Plans may be used for controlling. It is now time

1. Strategic Plans – plans that establish the

2. Tactical Plan - middle level management

3. Operational Plan – plans that apply to a

4. Long term plans – plans that go beyond

5. Short term plans – plans that cover one year

6. Single use plans – plans used or stated once

7. Standing plans – plans that are ongoing;

8. Directional plans – plans that are flexible or

9. Specific plans – plans that are clearly

 As earlier mentioned, top level managers are the ones

 Middle level managers are the ones responsible for

 Front line or Lower level managers are the managers

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