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Types of planning, Types of plans, Management by Objective

Types of planning:

  1. Strategic planning: Strategic planning involves long-term planning and setting overall goals and strategies to guide an organization or business. It focuses on the organization’s vision, mission, and objectives and involves making decisions about resource allocation and competitive positioning.
  2. Tactical planning: Tactical planning is shorter-term planning that translates the strategic goals and objectives into specific actions and plans. It focuses on implementing the strategic plans at the operational level and involves determining the resources, tasks, and timelines required to achieve specific outcomes.
  3. Operational planning: Operational planning is the most detailed and immediate form of planning. It involves planning for day-to-day activities and specific tasks within an organization. Operational plans are developed to ensure that routine tasks and processes are executed efficiently and effectively.
  4. Contingency planning: Contingency planning involves developing alternative plans and strategies to address unexpected events or crises. It aims to anticipate potential risks and develop response mechanisms to mitigate the impact of unforeseen circumstances.
  5. Financial planning: Financial planning focuses on managing and allocating financial resources effectively. It involves budgeting, forecasting financial needs, and developing financial strategies to achieve financial goals and objectives.

Types of plans:

  1. Strategic plans: Strategic plans outline the long-term goals and strategies of an organization. They provide a roadmap for achieving the organization’s mission and vision and typically cover a period of three to five years or more.
  2. Business plans: Business plans are comprehensive documents that outline the objectives, strategies, and operations of a specific business venture. They include details about the target market, products or services, marketing and sales strategies, financial projections, and operational plans.
  3. Operational plans: Operational plans are detailed plans that focus on the day-to-day activities and tasks within an organization. They specify the actions, responsibilities, timelines, and resources required to achieve specific operational objectives.
  4. Project plans: Project plans are specific plans developed for managing individual projects. They outline the project objectives, scope, timelines, deliverables, resources needed, and the overall approach for executing and monitoring the project.
  5. Contingency plans: Contingency plans are alternative plans developed to address potential risks, crises, or unexpected events. They outline the actions and procedures to be followed in case of emergencies or disruptions to ensure business continuity.

Management by Objectives (MBO): Management by Objectives is an approach to management and leadership that focuses on setting clear and specific objectives for individuals and teams. It involves the following key steps:

  1. Goal setting: Managers and employees collaborate to set specific, measurable, achievable, relevant, and time-bound (SMART) objectives that align with the organization’s overall goals and strategies.
  2. Action planning: Once the objectives are set, action plans are developed to determine the tasks, resources, and timelines required to achieve the objectives.
  3. Performance review: Regular performance reviews are conducted to assess progress towards the objectives. Managers provide feedback, identify any issues or challenges, and offer support to employees as needed.
  4. Performance appraisal: At the end of the evaluation period, performance is appraised based on the achievement of objectives. Feedback is provided, and rewards or incentives may be given based on the results.

MBO promotes clarity, alignment, and employee engagement by involving them in the goal-setting process and creating a results-oriented culture. It helps in improving communication, focus, and accountability within an organization.