TYPES OF PLANUSED BY MANAGERS

SHORT-RANGE AND LONG-RANGE PLANS

Short-range Plans cover 1 year or less Intermediate-range Plans cover 1 to 2 years Long-range Plans look 3 or more years into the future Top management is most

likely to be involved in setting long-range plans and directions for the organization as a whole, while lower management level focus more on short-run plans that help achieve long-term objectives.

STRATEGIC AND OPERATIONAL PLANS

Strategic Plans set broad, comprehensive, and longer-term directions.

Strategic planning involves:

Determining objectives for the entire organization. Describing what and where it wants to be in the future.

Operational Plans define what needs to be done in specific functions or work units to implement strategic plans.

PRODUCTION PLANS – dealing with the methods and technology needed by people in their work FINANCIAL PLANS – dealing with money required to support various operations FACILITIES PLANS – dealing with facilities and work layouts MARKETING PLANS – dealing with requirements of selling and distributing goods or services HUMAN PLANS – dealing with the recruitment, selection, and placement of people into various jobs

Typical operational plans for a business firm include:

POLICIES AND PROCEDURES

POLICY communicates broad guidelines for making decision and taking action in specific circumstances.

RULES or PROCEDURES describe exactly what actions are to be taken in specific situations. They are often found stated in employee handbooks or manuals as “SOP’s” – standard operating procedures.

BUDGETS AND PROJECTS

BUDGETS are single-use plans that commit resources to activities, projects, or programs. They are powerful tools that allocate scarce resources among multiple and often competing uses.

FIXED BUDGET – allocates a fixed amount of resources for a specific purpose. FLEXIBLE BUDGET – allows the allocation of resources to vary in proportion with various levels of activity. ZERO-BASED BUDGET – deals with this problem by approaching each new budget period as it if were brand new.

PROJECTS – one time activity that have clear beginning and end points.

PROJECT MANAGEMENT –involves making sure that activities required to complete a project are completed on time, within budget, and in ways that otherwise meet objectives.

- MONDELO -MANAGEMENT