The document outlines the essential characteristics of a good plan, which include clarity, simplicity, flexibility, participation, and practicality, along with the importance of periodic reviews. It also categorizes different types of plans such as objectives, strategies, policies, procedures, methods, rules, programs, and budgets, each serving specific purposes within an organization. Overall, it emphasizes the necessity of well-defined plans to achieve organizational goals effectively.

1. Plan
Plan: - A plan is a formulation of certain steps and action which are essential
for achieving certain specific results. Plans can be classified on the basis of
what they focus to achieve and the methods adopted viz. objective, strategy,
policy etc.
Characteristic of a Good Plan
1. Clear & Specific:- A good plan should clearly define the objective &
ways of achieving same.
2. Simple & Comprehensive:- A good plan should be simple &
Comprehensiveenough so that it covers all the important aspects of the
organisation.
3. Flexible:- A good plan should be flexible enough so that it can be
modified & altered according to the business environment. Itshould not
be rigid.
4. Participation:- A good plan should also involve the participation of
subordinate.
5. Logical & Practical:- A good plan should be logical and practical i.e.
based on available facts & appropriateassumptions aboutthe future.
Clear & Specific
Simple &
Comprehensive
Flexible
Participation
Logical &
Practical
Perodic review

2. 6. Periodic Review:- A good plan should include a system for periodic
review so as to assess appropriaterelevancefrom time to time in light of
changing environment.
Types of Plan
1. Objective:- An objective can be defined as a position wherethe
management wants to reach in future. Thus, objectives are the ends
which an organisation wants to achieve by its operation. They are the
basis of every organisation.
2. Strategy:- An organisationalstrategy is very much affected by social,
economic, political, technology and legal environment. Hence, these
forces of a business environmentshould be given due consideration
while formulating a strategy.
3. Policy:- A policy can be defined as a guide to managerial actions and
decisions in implementing strategy. If there is a well-defined policy, any
problem or issue can be resolved easily. Policies lay down broad
parameters for functioning of its managers.
4. Procedure:- Procedureis routine steps framed to carry out activities.
These are plans which determine the order of any work performance.
Procedures aregenerally meant for insiders and define chronological
sequence of doing any work for attaining predetermined objectives.
Types of
Plan
Objective
Strategy
Policy
Procedure
Method
Rules
Program
me
Budget

3. 5. Method:- Methods are standard ways of doing planned jobs for
attaining the objectives. They are more detailed than procedures. A
method is related to only one step of the procedureand specifics how
that step is to be performed. Methods are helpful in simplification,
standardization and systematization of work. For doing different jobs,
different methods can be adopted.
6. Rules:- Rules can be defined as statements that tell us what is to be
done and whatis not to be done. Deviations from rules are not
permitted. They enforce rigidity and there is fine or penalty if they are
not followed.
7. Programmes:- Programmes area solid combination of goals, policies,
procedure, rules, tasks, assignment, steps to be taken, resources to be
employed and other elements necessary to carry outa given courseof
action. Programmes interlink the objectives, policies and procedures.
8. Budget:- A budget is a statement of desired results expressed in
quantitative terms like rupees, productunits etc. it becomes very easy to
comparethe actual performancewith estimated one and hence take
correctiveaction. Therefore, a budget can also be defined as a control
device for depicting and correcting the deviations. In many
organisations, budgetis considered as a fundamental planning
instrument.