Planning... Meaning.. types

1. TYPES OF PLANS

2. Frequency-
of-use plans
•Frequency- of – use
plans are of two types
1.Standing plans
2.Single use plans

3. Single use plans
• Single use plans are the ones that are formulates to
deal with unique , new or non –repetitive situations
that may arise in an organization from time to time .
• These plans are designed for a particular purpose.
• Once the purpose is achieved these plans are cease
to exist.
• These plans are made for a very short duration of
time .

4. Types of single use plans
• There are two types of single use plans :
1. Programmes
2. Budgets

5. Programmes
•Programmes are complexes of goals , policies
, procedures , rules , tasks , assignments,
steps to be taken , resources to be employed
and other elements necessary to carry out a
given course of action .
• Features of programme:
1.A programme is a single use plan to
accomplish a particular goal .

6. Advantages of programmes
1. Programmes insure smooth implementation
of plans .
2. Programmes are helpful in better
coordination.
3. Programmes are action oriented plans .

7. Limitations of programmes
• If the programmes are not carefully framed,
there is a danger of their being failing.
• There is always a risk of inadequate co-
ordination.
• The major programmes have a number of sub-
programmes. Any lapse in implementing a
small programme can endanger the whole

8. Budgets
• A budget is an estimate of future needs , arranged
according to an orderly bases , covering some or all
of the activities of an enterprise for a definite period
of time.

9. Types of budgets
•Budgets are classified into three parts :
1. On the basis of time
2. On the basis of function
3. On the basis of flexibility

10. On the basis of time
• Long term budget – Top level Management- 5 to 15
years
• Short term budget- Middle level Management- 1 to 5
years
• Current Budgets – Lower level Management- Time ,
Months or Weeks

11. On the basis of Function
1. Functional Budget : The budgets pertaining to various
functions of the organization are called Functional
Budget .
2. Master Budget : When a number of Functional budgets
are integrated into one budget is called master Budget.

12. On the basis of flexibility
1. Fixed budget : A fixed budget is a budget that
doesn't change due to any change in activity level
or output level.
2. Flexible Budget: The flexible budget is
a budget that changes as per the activity level or
production of units

13. Objective of Budget
1. Tools of planning
2. Tool of control
3. Tool of co-ordination
4. Tool as a motivation

14. Advantages of Budget
1. Budgeting improves planning
2. Budgets are aid to coordination
3. Basis of control
4. Time Bound
5. Consideration of past , present and future
6. Makes possible delegation of authority

15. Limitations of Budgeting
1. Danger of over budgeting
2. Time consuming
3. It is not a blue print
4. Changing economy
5. It is a disastrous for the morale of the business

16. Time Frame plans
• Time frame plans are classified into three
categories:
1. Short range plans : Lower level
Management – Days , Weeks or Months .
2. Medium range plans : Middle level
Management – 1 to 5 years .
3. Long range plans : Top level Management –