Plan
A plan is a blueprint or framework used to describe how an organization expects to achieve its goals. Planning is the process of developing plans or determining how best to approach a particular goal. When managers plan they map out courses of action for their organizations in advance. Planning therefore describes the direction or the path that the organizational process must follow in order to achieve goals most efficiently and effectively.
Planning is thus of primary importance to every organization, and each manager must plan for his or her job. However overall planning must begin at the top of the organization.
The three major types of plans are:
- strategic
- tactical
- operational
Strategic plans are the broad, long range plans developed by top management to guide the general direction of the organization. Tactical plans are designed to implement strategic plans and hence have a moderate scope and intermediate time frame (associated more with middle management). Operational plans have the narrowest focus and the shortest time frame and are executed by firstline managers. They include standing plans and single use plans.
Planning is important for several reasons:
- It gives direction and purpose to organizational activities.
- Aids in the utilization of resources.
- It gives good measures against which performance can be judged.
- Reduces waste especially of time and often vital resources.
- Helps organizational members remain within focus and it gives boundaries of the extent of organizational activities.
- It is a basis for all other functions of management, without plans for example organization and control are impossible.