TYPES OF PLAN

USED BY MANAGERS
SHORT-RANGE AND LONG-RANGE PLANS

 Short-range Plans cover 1 year or less

 Intermediate-range Plans cover 1 to 2
years
 Long-range Plans look 3 or more years
into the future
 Top management is most
likely to be involved in setting
long-range plans and
directions for the organization
as a whole, while lower
management level focus more
on short-run plans that help
achieve long-term objectives.
STRATEGIC AND OPERATIONAL PLANS

 Strategic Plans set broad,

comprehensive, and longer-term
directions.

 Strategic planning involves:

 Determining objectives
for the entire organization.
 Describing what and
where it wants to be in the
future.
  Operational Plans define what
needs to be done in specific
functions or work units to
implement strategic plans.
 Typical operational plans for a business firm
include:
 PRODUCTION PLANS – dealing with the
methods and technology needed by people
in their work
 FINANCIAL PLANS – dealing with money
required to support various operations
 FACILITIES PLANS – dealing with
facilities and work layouts
 MARKETING PLANS – dealing with
requirements of selling and distributing
goods or services
 HUMAN PLANS – dealing with the
POLICIES AND PROCEDURES

RULES or
PROCEDURES describe
exactly what actions are to
be taken in specific
situations. They are often
found stated in employee
handbooks or manuals as
“SOP’s” – standard
operating procedures.

 POLICY communicates
broad guidelines for
making decision and taking
action in specific
circumstances.
BUDGETS AND PROJECTS

 BUDGETS are single-use plans that commit

resources to activities, projects, or
programs. They are powerful tools that
allocate scarce resources among multiple
and often competing uses.
 FIXED BUDGET – allocates a
fixed amount of resources for a
specific purpose.
 FLEXIBLE BUDGET – allows
the allocation of resources to vary
in proportion with various levels
of activity.
 ZERO-BASED BUDGET – deals
with this problem by approaching
each new budget period as it if
were brand new.
 PROJECTS – one time activity that have
clear beginning and end points.
 PROJECT MANAGEMENT –involves making
sure that activities required to complete a project
are completed on time, within budget, and in
ways that otherwise meet objectives.
- MONDELO -
MANAGEMENT