Types of plans- organizational level, focus, time period

1. Types of
Plans
We can classify planning on the basis of following
dimensions :-
1.Organizational level :-
i. Corporate
ii. Divisional
iii. Functional planning
2.Focus :-
i. Strategic
ii. Operational
iii. Tactical planning
3.Time period :-
i. Long range
ii. Medium range
iii. Short range

2. Level of Planning:
(i) Corporate planning (Top Level):-
Corporate planning may be defined as a systematic and comprehensive
process of planning taking into account of the resources and the
capability of the organisation and the environment within which it has
to operate viewing the organisation as a total corporate unit. Corporate
planning is strategic in nature and it covers ebtire spectrum of
organisational activities. It lays down the basic objectives , policies and
strategies for the organisation as a whole. It usually covers a long period
of five years or even more than this.
Corporate plannning provide for future contingencies and attempts to
match the organisational resources with the opportunities and threats in
the external environment. Plans at corporate level are formulated by the
top level managers and they integrate various divisional and functional
plans of the enterprise.
(ii) Divisional Planning (Middle Level) :-
Divisional planning relates to a particular department or division. Thus
it sets the objectives , policies and programes of aparticular division or
department in tune with the corporate plans of the enterprise. The
divisional head and the middle level manangers are responsible for
divisional plans. For instance , financial plannning is the responsibility
of finance manager and sales budget is the responsibility of marketing
manager.
(iii) Sectional Planning(Lower Level) :-
Sectional or unit planning is highly specific as it is done to achieve the
divisional objectives. Its focus is to lay down detailed plans for a

3. particular unit for day to day guidance of personal working there. The
first line managers are responsible for developing plans for their units in
thelight of divisional plans. Such plans are more specific and detailed as
compared to divisional and corporate plans.
Focus of Planning
(i) Strategic Plannning.
Strategic planning is the process of deciding objectives of the
organisation and determining the manner in which the resources of the
enterprise are to be deployed to realise the objectives in the uncertain
environment.
A strategy represents the general direction of the organisational efforts.
It is the way in which the management choose to utilise the organisation
resources to reach its objectives. It involves a multilateral relationships
among the organisation, its resources and the environment. Strategic
plans are madeby the top mangement of the firm after taking into
account the firm’s strenghts and weaknesses in the light of internal and
external environment.
(ii) Operational Planning.
Operational planning is concerned with the efficient use of resources
already allocated and with the development of control mechanism to
ensure effficient operation so that organisational objectives are
achieved. It lays down programmes, budgets, projects, policies,
procedures, rules, etc. to implement the strategic plan. In other words,
an operational plan (also called tactical planning) involves laying down

4. how the firm’s resources of the organisation will be used to help the
firm achieve its objectives.
Operational plans provide the details of how the strategic plans will be
accomplished. In other words, the details of how the strategic plans will
be accomplished. In other words, the details that activate the strategic
plan are domain of operational plannning. An operational plan as often
more specific than a strategic plan.
(iii) Tactical Planning.
Tactical plans are made for short term moves and necessary for
supporting the strategic plans and achieving firm’s objectives. They are
required to meet the challanges of sudden changes in the environmental
forces. For instance, tactical plans may be made to handle a sudden fall
in the demand of firm’s products of unexpected move by a competitor.
Tactical planning may also become necesseary to secure big orders by
changing the price policy, terms of conditions and discount, etc. The
nature of a tactical plan is dictated by the threats posed by the
environment.
Range or Time Span of
Planning
(i) Long – range Planning.
Long range planning is the process of establishing long term goals,
without strategies, policies and programes to achieve these goals. In
other words, long range planning sets long term goals for the enterprise

5. and formulates strategic plans for attaining these goals. It generally
covers a period ranging from five years to twenty years or even more.
The period will vary from organisation to organisation. It may be five
years for departmental stores and at least twety-five years for a company
intending to take up the production of the timber. The purpose of long-
range planning may include technological leadership, increase in market
share, globalisation of production and marketing, public, image, etc.
Long range planning may involve capital budgeting, product plannning,
project planning, acquisation of completing units. It may involve
complete change in the outlook of the business. It deals with the broad
technological, financial competitive aspects of the business. Because of
this, long-range planning is associated with agreat deal of uncertainity.
Its success will be determined by the ability of the organisation to
predict and deal with the environment.
(ii) Intermediate or Medium-range Planning.
Intermediate plans are made to support the long term plans. They may
relate to department of new products and markets. Product publicity,
increasing return on investment from the existing products and markets,
etc. Medium-term planning usually covers a period of more than one
year but less than five years. The length of period may vary from one
bussiness to another depending upon the nature of business, risks and
uncertainities, government control, changes in technology, nature of
market, etc.
(iii) Short-range Planning.
Short range planning relates to period of upto one year, generally. Such
plans are made to achieve short-term goals. Short range planning is
concerned more with the current or near-future operations of the
enterprise. It may be considered as astep by step approach to medium
and long-range planning. Short-range plans are instrumental in

6. implementing long-term plans. They are quite specific in nature such as
change of product design, training of workforce, reduction of inventory
levels, preparation of production budget and so on. Short-range
planning is generally action-oriented and is the responsibility of lower
level managers.