TYPES /LEVELS/MODES/FORMS OF PLANNING

 

TYPES /LEVELS/MODES/FORMS OF PLANNING

1.     

          COORPORATE PLANNING AND FUNCTIONAL PLANNING

2.       STRATEGIC PLANNING AND OPERATIONAL PLANNING

3.       LONG TERM PLANNING AND SHORT TERM PLANNING

1.      

     Corporate planning and functional planning

Planning activity is pervasive and can be undertaken at various levels of an organization. It may be for the organization as a whole or for different functions.

Thus, on the basis of activities, there may be planning for the organization as a whole called corporate planning or for its different functions called functional planning.

Corporate planning- It is undertaken at the top level or the corporate level and covers entire organizational activities. It is of integrative nature. Its basic focus is to determine the long term objectives of organization as a whole and generates plans to achieve them, bearing in mind the possible change of environment. It provides basis for functional planning.

Functional planning- It is of segmental nature and is undertaken for each major function of the organization like production/operation, marketing, finance, human resources etc.

At the second level, it is undertaken for sub function within each major function.

Example- marketing planning is undertaken at the level of marketing department and to put marketing plan in action like sales, promotion, marketing research etc.

 

2.      Strategic planning and operational planning-

 

Strategic planning- it involves setting long term direction of the organization in which it wants to proceed in future. It is the process of deciding long term objectives and deciding where the organizational resources and efforts should be put to achieve its objectives. It deals with strategic issues like – type of business to be undertaken, diversification of business into new lines, type of product to be offered etc, it also involves rigorous analysis of various environmental factors to relate the organization relates to its environment.

 

Operational planning- also known as tactical planning. It is the process of deciding the most effective use of the resources already allocated through strategic planning and to develop a control mechanics to ensure effective implementation of the actions. Usually it covers 1 year. It aims at sustaining the organization in its production/generation and distribution of products in the market.

 

1.      Long term and short term planning-

 

Long term planning- it is of strategic nature and involves usually plans for 5 years. It usually covers all the functional areas of the business. In this process, high emphasis is placed on the analysis on the environmental factors. Basic changes like change in organizational vision and mission, major changes in structure, change in key personnel etc.  becomes the significant factors for long term planning.

 

Short term planning- usually covers 1 year. This aims at making effective use of organizational resources, financial, physical and human resources. It directly and immediately effect functional areas- production, marketing, and finance, etc  .