2. Types of Plans
• Plans can be classified as :
1. Mission or Purpose
2. Objectives or Goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
3. 1- Mission or Purpose
• Mission or purpose: Why we are here?
– It refers to the basic purpose or function or task
of an organization or agency.
– It explains what service the organization is
providing to the society.
4. 1- Mission or Purpose
Examples:
• The purpose of a hospital is to provide health
services.
• The purpose of a university is teaching,
research and providing service to the
community.
• Du Pont: “Better things through chemistry”
• Your mission:
5. 2- Goals or Objectives
• Goals or Objectives :
– Goals and objectives are one and the same thing
(as per “Management- a global perspective” by Koontz)
– It is the end to which all the organizational
activities are aimed.
– It is always time bound ( “SMART” objectives).
– It may be long term or short term.
– Must be verifiable at the end of the period.
6. 2- Goals or Objectives
• Example:
– To be no.1 in providing quality education in 5
years
– To achieve and maintain a growth rate of 15%
P.A. by the end of this year
– To be a market leader in terms of units sale by
the end of this year.
– Your own objectives:
7. 3- Strategies
• Strategies:
– It defines ways and means to achieve the
established objectives.
– It is defined as the adoption of course of
action among various available alternatives to
achieve the basic long term objectives of an
organization.
– It must have a relation with the stated
objective.
8. 3- Strategies
• Examples:
– Objective: To increase the market share by 10%.
– Strategy: To introduce a large size pack in the market
(e.g. 1.5 L pack of Coke or Pepsi).
– Objective: To improve leadership skills of our front line
managers.
– Strategy: To arrange a 2 day training session on
leadership skills for all managers by Dec 31.
– Objective: To reduce the personnel cost by 20%.
– Strategy: To hire part time workers instead of permanent
employees till end of the year.
9. 4- Policies
• Policies are guidelines for managerial
actions to implement strategies.
• These are general statements that provide
a guideline for thinking in decision making.
• Policies bring uniformity in taking actions
and resolving issues.
• Saves time by avoiding analyzing the
same situation every time.
10. 4- Policies
• Examples:
– One has to appear in entry test for admission to
any professional college or university.
– You need two references to open a bank
account.
– You need a visa to go to any foreign country.
– You need to complete you credit hours and to
pass the exam to get your BBA degree.
– Hiring only BBA/ MBAs as managers in any
organization.
12. Integrating objectives, strategies
and policies
• Management Objective:
– To increase productivity of the employees
• Strategy:
– To motivate the employees to work efficiently
• Policy:
– To provide one extra salary as bonus on
achievement of targets by more than 110%
13. Integrating objectives, strategies
and policies
• Management Objective:
– To increase productivity of the employees.
• Strategy:
– To improve the competence level of front line
managers.
• Policy:
– To send 2 managers in every quarter to Dubai
for a one week workshop on leadership skills
14. Integrating objectives, strategies
and policies
• Management Objective:
– To increase productivity of the employees
• Strategy:
– To reduce the time spent in traveling and
other non productive activities.
• Policy:
– To provide company maintained cars to all
field force employees.
15. Integrating objectives, strategies
and policies
• Management Objective:
– To reduce the number of people leaving the
organization.
• Strategy:
– To increase the employees loyalty with the
company.
• HR policy:
– To promote only from within the organization.
– Providing bonuses on completion of 5 or 10
years with the company.
16. Management Exercise
State one management objective for your
organization and define a strategy, as
well as make one or two policies to
achieve the stated objective
17. 5- Procedures
• Procedures are plans that establish a
required method of handling future activities.
• They are chronological sequences of
required actions.
• They are guides to actions rather than
thoughts.
18. 5- Procedures
• Examples:
– Policy: You need a visa to go abroad.
– Procedure: You have to apply for visa through
the embassy.
– Policy: To provide company maintained laptops
to the employees.
– Procedure: You have to apply through proper
channel.
– Admission procedure for any educational
institute.
19. Procedures
• Examples:
– Policy: you need a visa to go abroad
– Procedure: you need to go to the embassy and
follow the procedure
– Policy: to provide company maintained laptops
to the employees
– Procedure: you have a procedure for
purchasing laptops from a vendor
20. Procedures
– Admission procedure for any educational
institute
– Procedure for hiring candidates from outside
the organization
Job
Advertisement
Candidates
CVs
Short Listing
Initial
Interview
Employment
Tests
Final
Interview
Selection
Job offer
Letter
21. 6- Rules
• Rules are preset managerial decisions
about an action that must or must not be
taken.
• They simply tell you to take certain actions
or to stop it when and where required.
• There is no choice or discretion in rules.
• Rules are imposed sometimes by the
government or external agencies/ customers
22. Rules
• Examples:
– “No smoking”
– Keep to the left
– keep to the right
– Stop on red signal
– Rules in cricket and other games
– Switch off your mobiles in the class
– Wearing a special uniform by the employees
23. 7- Programs
• Programs are a complex of goals, policies,
procedures, rules, task assignments, steps
to be taken, and other elements necessary
to carry out a given course of actions
• A program may be major or minor, long
term or short term
24. 7- Programs
• Examples:
– Polio eradication program by the government/
UNICEF.
– 5- years development program by the govt.
– A short term program initiated by a front line
manager to improve the morale of workers in
his unit.
– Providing clean drinking water to the residents
of Kabul.
25. 8- Budgets
• A budget is a statement of expected
results expressed in numerical terms.
• It can also be called as a quantified plan.
• Most companies make their annual
budgets in advance.
• An annual budget may contain information
on sales targets, marketing expenses,
personnel and other costs, and gross and
net profit etc.
26. 8- Budgets
• Examples:
– Annual budget of any country.
– Your home budget.
– Annual budget of any sales organization.
