Planning Process and Types of Plans

The planning process is usually described in the following steps: (1) setting objectives — what is to be achieved; (2) developing premises — the assumptions about the future environment on which the plan is based; (3) identifying alternative courses of action; (4) evaluating alternative courses — weighing each against the objectives, cost, and risk involved; (5) selecting an alternative — choosing the best course, sometimes a combination of more than one; (6) implementing the plan — putting the chosen course into action; and (7) follow-up action — monitoring the plan as it is carried out and modifying it if conditions change.

Types of plans:

• Objectives — the ends towards which activity is directed; the starting point of all planning.
• Policy — a general guideline for decision-making, setting the boundaries within which decisions must be made (e.g. "promote only from within the organisation").
• Procedure — the exact, chronological sequence of steps to be followed to carry out a particular activity (e.g. the steps for processing a leave application).
• Method — the prescribed manner in which a particular step of a procedure is to be performed.
• Rule — a specific statement that tells what is to be done or not done, allowing no discretion (e.g. "no smoking in the factory").
• Budget — a statement of expected results expressed in numerical (usually financial) terms for a given future period.
• Programme — a comprehensive plan that includes a complex set of objectives, policies, procedures, rules, and budgets needed to carry out a given course of action. …