Types of Plans

1. Objectives

Objectives are the end results towards which all the activities are directed. For example, it can be the objective of an organisation to impart training in cloth printing to 1000 persons in a year. As far as possible objectives should be measurable in quantitative terms and should be achievable.

2. Strategy

To exist in the changing business environment and to face the competitions in the market plans that are formulated are called strategies. Strategies refer to plans which are prepared by considering the more of competitors for the optimum utilisation of resources. Strategy is a comprehensive plan which indicates the desired future of an organisation. For example,

  1. Tata adopted the strategy of attracting even middle income group to purchase cheaper car (Nano)
  2. Because of labour turnover, IT companies adopted the strategy of appointing not only engineers but also graduates from Maths and Physics discipline

3. Policy

A policy is a general statement that guides decision making. It decides the boundaries within which the decisions can be made. Policies direct decisions towards achievement of objectives. For example, an organisation may have policy of giving training only to candidates who secured more than 60 percent marks.

4. Procedure

Procedures are plans which determine the sequence of any work performance. If procedures are decided in advance, everyone can follow the same. For example, the procedure for giving training to candidates in an organisation.

  1. Collect the application from candidates.
  2. Verify the scores / mark of each candidate.
  3. Verify the area of training needed by each individual (cutting & measuring a piece of cloth for stitching).
  4. Collect fees / decide the stipend to be given to each candidate.
  5. Send letters intimating the date and period of training.
  6. Conduct training programme on completion of training.
  7. Issue of certificate to each participant.

5. Methods

Method is that plan which determines how different activities of the procedure are completed. A method is not related to all steps but only to one step of the procedure. One best method is selected in which a worker feels minimum fatigue and there is increase in productivity.

Methods are standardised way of doing work. For example, cloth can be manufactured by labour intensive method or capital intensive method. But most efficient is one which will use least amount of scarce resources.

The method of car driving training can be by using a car or by using a computer software in the initial period of training.

6. Rule

Rules clearly indicate what is to be done and what is not to be done in a particular situation. Strict actions can be taken against persons who violate the rules. Rules are guideline designed to guide behaviour. For example, there can be rule of ‘Keep Silence’ in a library or ‘No smoking’ in a factory.

7. Budget

It is a statement of expected results expressed in numerical terms. A budget is a type of plan expressed in financial terms or in terms of labour hours, units of product, machine hours, etc.

Budgets are quantitative statements indicating expected results and expenditure required for achieving the goal. For example, cash budget estimates the expected cash inflow and cash outflow over a period of time.

8. Programme

A programme is a plan laying down the what, how, who and when of accomplishing a specific job. The programmes are mode to get a systematic working in the organisation. Programme is a scheme designed to accomplish a specific objective. It spells out clearly the steps to be taken, resources to be used, and time period within which the task is to be completed.

A programme usually includes a set of objectives, policies, procedures, methods, budgets, etc. e.g. developing a new product, training programme, advertising programme , etc.