types of plans, standing plan, single use plans, objectives, strategy, policy, procedure, rule, method, programme, budget

1. Types of plans
By Raj Narayan Yadav

2. Types of plan
Single - use plansStanding plans
● Objectives
● Strategy
● Policy
● Procedure
● Rule
● method
● Programme
● budget

3. Standing plan or Repeatedly used plan:
The name suggests these plans are formulated once and repeatedly used. These
plans continuously guide the manager. That is why it is said that a standing plan is
a standing guide to recurring problems.
● Recurring in nature
● Long-term goals
● Developed once can be modified later
● Based on main organisational objectives

4. Objectives
Objectives are defined as ends for the achievement of which an organization goes on
working. They may be designed as the desired future position that the management would
like to reach. The first and foremost step of the planning process is setting organizational
objectives.They have hierarchy.
Objectives should be smart as
S - Specific
M - Measurable
A - Achievable
R - Result-oriented
T - Time bounded
Example: increase in sale by 10% by six months or decrease in rejections by 2% by one month.

5. Strategy:
It refer to future decisions defining the organizational directions and scope in long run. It is
comprehensive plan. It is a plan prepared to counter the probable moves of opponent. Initially it
was used with reference to war. A strategy is generally made to fight the changing business
environment specially competition e.g., marketing strategy.
● It is a comprehensive plan.
● Formulated for solving challenging and unforeseen problems.
● It is temporary or ad hoc in nature.
● It allocates human and other resources.
● Contingent factors are mostly external.

6. Policy
Policies refers to the general guidelines (for thinking) which brings uniformity in
decision-making for achievement of organizational objectives. They provide directions to
the managers of an organization. They are flexible as they may be changed as per
requirement.Example, selling goods on cash basis only, reserving some post for women in
the organization.
● Contingent factors are mostly internal.
● It is a general statement.
● It has flexibility to some extent.
● It is relevant for higher levels.
● It is formulated by every manager.
● It is derived from organisational objectives.

7. Procedure
Procedures are those plans which determine the sequential steps to carry out some
work/activity. They indicate which work is to be done in which sequence/way. They help in
the performance of work. Procedures are guides to action. Example: Process adopted in
the Selection of Employees.
● They help in implementation of policy.
● They are expressed in specific terms.
● It has no flexibility.
● It is relevant for lower levels.
● It may cut across the functional lines in an organisation.

8. Rule
Rules provide guidelines for actions. It is a specific statement that tell what is to be done
and what not to be done in a specified situation. They help in indicating which points are
to be kept in mind while performing task/work. Rules are rigid which ensure discipline in
the organization. Example: ‘No smoking in the office premises’. Violation of rules may
invite penalty.
● It is specific in nature.
● It involves penalty for violation.
● It has code of conduct.
● It is rigid.
● It specify what to do and what not to do.

9. Method
Methods are standardized ways or manner in which a particular task has to be performed.
There may be many ways/methods of completing a task but that method/way must be
selected by which work can be done early at the minimum possible cost. Methods are
flexible. Example, various methods of training are adopted by an organization to train its
employees like apprenticeship training, vestibule training etc.
● It is activity specific.
● Different methods for specific tasks.
● It forms part of procedure.
● It is one best way for doing things.
● It involves no penalty.

10. Single use plans
These plans are connected with some special problems. After having been used once
there is no importance of these plans in future.
● They are devoloped for one- time use only.
● Generally they are prepared for a specific situation.
● They are not applicable to repeating activities.
● Examples of single - use plans are programme, budget.

11. Programmes
A programme is a single use plan containing detailed statements about project; outlining
the objectives, policies, procedures, rules, tasks, physical and human resources required to
implement any course of action. Example: cleanliness programme in the organisation.
● Designed for definite objective.
● Designed for effective use of resources.
● Useful guide in day to day operations.

12. Budget
A budget is a statement of expected result expressed in numerical terms for a definite
period of time in the future. Budgets are of many types like: Cash budget, sales budget etc.
● Monitor the cost and expenditure.
● Based on past figures and possibilities.
● Prepared at all levels of management.
● It is period specific.