Chapter 6

1. Chapter 6 Types of plans

2. Types of plans • “keeping in mind that a plan encompasses any course of future action,we can see that plans are varied.” koontz & o’ Donnell

3. Types of plans 1.On the basis of time 4.On the basis of use 3.On the basis of broadness 2.On the basis Of managerial level

4. 1.On the basis of time • Long term plans-more than 3 years and formulated by top managers • Medium term plans – 1-3 years by middle level managers • Short term plans – less than 1 year.laid down by the lower level managers

5. 2.On the basis of managerial levels • Top level plans • Middle level plans • Lower level plans

6. 3.On the basis of broadness • Corporate level plans • Departmental plans

7. 4.On the basis of use (A) Standing or repeatedly used plans 1.Mission and objectives Purpose Mission objectives

8. Characteristics of objectives • Basis of organisation • Basis as well as forms of plans • Hierarchy of objectives • Plurality of objectives • Cooperation in organisational and individual objectives • Review of objectives

9. Importance of objectives • Objectives define the justification of org. • Efficient use of limited resources • Objectives stimulate actions • Objectives are the basis of plans • Satisfies the mutual interests • Objectives are helpful in control

10. Guidelines for setting objectives • Employees participation • Objectives should be realistic • All objectives should support the main objective • The number of objectives should be less • Objectives should be measurable • Need for constant review • Information about objectives to all the people concerned • Objectives must be clear

11. 2.Policies Features • Determination of discretion limits • Permanent solution to the same type of problems • General guidelines • Flexibility • Helpful in getting objectives • In written forms

12. Types/scopes of policies • (A) on the basis of broadness 1.Organisational policies 2.Departmental or functional policies (B) On the basis of origin 1.Basic policies 2.Appealed policies 3.Imposed policies (C) on the basis of freedom 1.General policies 2.Specific policies (D) On the basis of clarity 1 .written policies 2. oral policies 3.implied policies

13. Evaluation • Merits- • Saving of time and labour • Guidence to subordinates • Determination of decision limits • Convenience in coordination • increase in confidence in subordinates

14. Demerits- • Policies are no solution to all the problems • Policies are only guidance not final decision • Lack of freedom

15. Essentials of a sound policy • Relationship with organisational objectives • Simple and clear • Written • Balanced • Wide communication • Uniformity in operations • Realistic • Employees participation • Periodical review

16. (3) procedures:- • Importance:- • Basis of control • Uniformity in results • Increases efficiency • Coordination • Limitations;- • Rigidity • Unnecessary delay • Features:- • Based on facts • Stability and flexibility • Periodic review • Give steps in a logical sequence • To fix accountability

17. (4) Rules • Koontz & O’Donnell , “ A rule requires that a specific and definite action to be taken or not taken with respesct to a situation.”

18. (5). Strategy • Koontz and O’Donnell, “ Strategy concerns to directions in which human and physical resources will be deployed and applied to maximise the chances of achieving a selected objective in the face of difficulties.”

19. Features of strategy • Formulated by top level managers • Flexible nature • Needed in special circumstances • Stress on proper utilisation of resources • Proper implementation is necessary

20. Formulation of strategy • Knowledge 0f objectives • Analysis of external environment • Analysis of internal env • Development of alternatives • Evaluation of alternatives • Choice of particular strategy

21. Factors affecting right strategic decision • Internal consistency • External consisitency • Consistent with available resources • Bearable degree of risk • Appropriate time • Enough degree of workability

22. (B) Single use plans • 1.Programme- Newman and summer- activities:- • To determine different activities • To fix their sequence • Assigning each activity to each officer • To fix the time • Making available the necessary resources • Fixing date of completion of each activity

23. Essentials- • Define objects • Coordination between different programmes • Programme should be acc to basic policy • Determination of time limit • TYPe of programmes- • Short term • Long term • Limited • Broader

24. ( 2). Budget:- • Features:- • Quantitative expressions of efforts and targets • Helpful in planning and control • Advantages • Helps in control • Establishes coordination • Helps in fixing accountability • Helps in checking wastage • Increases business efficiency

25. (3). Projects • Features:- • Quantitative Expressions of efforts and targets • Helpful in planning and control • Advantages:- • Helps in control • Establishes coordination • Helps in fixing accountability • Helps in checking wastage • Increases business efficiency

26. (3). Projects:- • Different independent parts of a progm are called projects • (4) schedules:- Special Plans which determine the time that a particular activity will take

27. Corporate planning • Planning under Which long term plans are formulated with a view to ensuring the development and extension of the whole company. • Features:- • Period of planning (5 – 10 yrs) • Area of planning (whole company) • Level of planning( top level managers) • Maximum use of resources • Environmental factors • Difficult determination