TYPES OF PLANS USED BY

EFFECTIVE MANAGERS
Reporters: PA 204
Maria Gidelyn S. Honrado Management Planning and Control
Rendon Marquez DR. DEONY M. CABAOBAO
Ann Mary Lajo
PLANNING
 Is a mental predisposition to do things in an orderly way, to
think before acting and to act in the light of facts rather than
guesses. (Urwick)
 Is deciding in advance what to do, how to do and who is to
do it. (Koontz and O’Donell)
 Means looking ahead and chalking out future courses of
action to be followed. It is a preparatory step, a systematic
activity which determines when, how and who is going to
perform a specific job.
 A process that involves the setting of the organization’s goals,
establishing strategies for accomplishing those goals and
developing plans of actions that managers intend to use to
achieve said organizational goals.
PLANNING
GOALS
Targets that the management desires
to reach or achieve.

PLANS
Means or actions which the
management intends to use to achieve
the said goals.
 PLANNING

PLANS

Comprehensiveness Time Frame Specificity Frequency of Use

TYPES OF PLANS USED BY
EFFECTIVE MANAGERS
1. Short-Range and Long-Range Plans
2. Specific and Directional Plans
3. Corporate and Functional Plans
4. Strategic and Operational Plans
5. Standing and Single Use Plans
6. Proactive and Reactive Plans

* The type of plan managers use depends on the situation of an

organization. Some organizations have very regular activities,
others are irregular.
SHORT-RANGE PLANS
 Plans which are usually made for one year or less.
 Generally constitute a specific time frame in which a
specific series of operations will be carried out, assessed
and measured.
 They meet a particular objective in the near future and
cover a limited area of training.
 These are aimed at sustaining an organization in its
production and distribution of products or services.
 These plans directly affect functional groups.
(Production, Marketing and Finance)
LONG-RANGE PLANS
 Are strategic in nature and cover a longer time period,
say 3-5 years or more.
 Sometimes referred to as “VISION SETTING” and broadly
define the vision for the future.
 Focus on a vision for the future, contain broad goals and
outcomes, and provide clear philosophy statements that
create the foundation of all strategic and annual
planning processes.
 Set of goals that outlines the path for the company’s
future.
LONG-RANGE VS SHORT-RANGE
SPECIFIC PLANS
 Plans that are clearly defined and leave no
room for interpretation.
 Have clearly defined objectives.
 Require specific stated objectives and do not
contain ambiguity.
DIRECTIONAL PLANS

 Flexible plans that set out general guidelines,

provide focus yet allow discretion in
implementation.
 Provide focus but do not lock managers into
specific objectives or specific courses of actions.
 Preferable in a dynamic environment where
management must be flexible in order to respond to
unexpected changes.
DIRECTIONAL VS SPECIFIC PLANS
CORPORATE PLANS
 Outline the broad objectives of an organization as a
whole and develop plans to achieve those
objectives.
 Focus on organizational performance.
 Holistic and unified focus.
 Involve the entire organization.
 Long-term plans to improve an organization by
examining its internal capabilities and laying out
strategies on how to use those capabilities to
achieve goals.
FUNCTIONAL PLANS
 Unit planning and deals with different departments
in an isolated manner.
 Focus on departmental performance.
 Involve the organizational departments such as
human resources, marketing, operations and IT.
 Concrete, specific actions and timeframes in
achieving an organization’s goals.
CORPORATE VS FUNCTIONAL PLANS
Corporate and Functional Plans focus on the following
questions:
CORPORATE
• What industries should we get
into?
• How does the parent
organization add vaule to its
subsidiaries?
• What resources should be
allocated to each unit?
FUNCTIONAL
• What activities does my unit
need to perform well in order to
meet client expectations?
• What information about
competitors does my unit need
in order to help the organization
compete effectively?
STRATEGIC PLANS
 Set the long term direction of the organization in which it
wants to proceed in the future.
 Focus on the broad future of the organization incorporating
both external information gathered by analyzing the
organizations’s competitive environment and it’s internal
resources.
 Focus on how to achieve goals three to five years into the
future.
 Has the potential to impact dramatically the survival and
success of the organization.
 Are designed with the entire organization in mind and begin
with an organization’s mission.
OPERATIONAL PLANS
 Lay out what needs to be done to achieve the strategic
plans and identify activities that need to happen to make the
strategic plan work.
 Translate the strategic plans into specific goals and actions for
small units of the organization and typically focus on the short
term, usually 12 months or less.
 Least complex than strategic plans and rarely have a direct
effect on other plans outside of the department or unit for
which the plan was developed.
 Made by frontline or low-level managers and are focused on
the specific procedures and processes that occur within the
lowest levels of the organization.
STRATEGIC VS OPERATIONAL
STANDING PLANS
Are put to use again and again over a long
period of time. Once established, they continue
to apply until they are modified or abandoned.
Help managers in dealing with routine matters in
a pre-determined and consistent manner.
Developed for activities that recur regularly over
a period of time.
SINGLE USE PLANS
Relevant for a specified time and after the lapse
of that time, these plans are formulated again
for the next period.
Are non-recurring in nature and deal with
problems that probably will not be repeated in
the same form in the future.
Are generally derived from standing plans.
EXAMPLES of SINGLE USE and
STANDING PLANS
SINGLE-USE STANDING
1. Programs 1. Objectives

2. Projects 2. Policies

3. Targets 3. Procedures

4. Schedules 4. Methods

5. Budgets 5. Rules
PROACTIVE PLANS
 Anticipate future contingencies and get ready with
alternative routes for unforeseen circumstances.
 Design suitable course of action in anticipation of
likely changes in the relevant environment.
 Focus on eliminating problems before they have a
chance to appear.
 Involve designing a desired future and then
inventing ways to create that future state.
REACTIVE PLANS
 Are organization’s reaction to events as and when
they arise.
 Plans where actions are dictated as a response to
whatever has already, or is now occurring.
 An organization’s response after the environmental
changes have taken place.
PROACTIVE VS REACTIVE