This document outlines the different types of plans that organizations use including: mission/purpose, objectives/goals, strategies, policies, procedures, rules, programs, and budgets. It provides examples and definitions for each type of plan. The key types of plans are mission/purpose which defines the organization's function, objectives/goals which are time-bound and measurable targets, strategies which are courses of action to achieve objectives, and policies which provide guidelines for decision making.

1. The Planning Function
Types of Plans

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.

11. Management Exercise
Integrating, Goals and Objectives,
Strategies, and Policies

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.