Levels and types of plans, and the planning process
Plans differ by level, breadth, time frame, specificity and use. The planning process moves from opportunities and objectives to choosing, supporting plans and budgets.
Levels of planning
| Level | Who plans | Time frame | Example |
|---|---|---|---|
| Strategic | Top managers | Long term | Enter the Indian market with a new product range |
| Tactical | Middle managers | Medium term | A two-year marketing plan for the Southern Province |
| Operational | First-line managers | Short term (days to a year) | A weekly shift roster for the packing section |
Types of plans
| Basis | Types | Meaning |
|---|---|---|
| Breadth | Strategic vs operational | Whole organization and its position vs one area of operations |
| Time frame | Long-term vs short-term | Robbins: beyond three years vs one year or less |
| Specificity | Specific vs directional | Clear, fixed objectives vs flexible general guidelines |
| Frequency of use | Single-use vs standing | One-time need (programme, project) vs ongoing use (policies, procedures, rules) |
The planning process (Koontz and Weihrich)
Premises are assumptions about the future. After budgeting, plans are implemented and the results feed the next round of planning.
What decides the kind of plan?
Robbins names three contingency factors. Level in the organization: top managers plan strategically, lower managers operationally. Degree of environmental uncertainty: when uncertainty is high, plans should be specific but flexible. Length of future commitments: plans should reach far enough to meet the commitments made today. Planning can be done by a formal planning department (the traditional approach) or by involving members at all levels, which builds commitment.
A tea exporter like Dilmah plans at three levels: strategic (which export markets to enter), tactical (a regional marketing plan for one country) and operational (weekly packing and shipping schedules at the factory).
Short answer: “Distinguish standing plans from single-use plans.” Standing plans (policies, procedures, rules) guide repeated activities; single-use plans (programmes, projects, one-off budgets) meet a one-time need.
Structured question: “Explain the levels of planning.” Strategic (top, long term), tactical (middle, medium term), operational (first-line, short term): who plans and one example each.
Essay: “Explain the types of plans and the steps in the planning process.” Classify plans by breadth, time, specificity and use, then draw and explain the eight-step planning process with a Sri Lankan example.
Planning process: 'All Our Plans Involve Effort, Skill, Dedication, Budgets' = Awareness of opportunities, Objectives, Premises, Identify alternatives, Evaluate, Select, Derivative plans, Budget.