The various types of planning are as follows:
On the basis of nature
- Operational Plan: Operational plans are the plans which are formulated by the lower level management for short term period of up to one year. It is concerned with the day to day operations of the organization. It usually covers functional aspects such as production, finance, Human Resources etc.
- Tactical Plan: Tactical plan is the plans which are concerned with the integration of various organizational units and ensures implementation of strategic plans on day to day basis. The tactical plan is also known as coordinative or functional plan.
- Strategic Plan: Strategic plan is the plans which are formulated by the top level management for a long period of time of five years or more. They decide the major goals and policies to achieve the goals. It takes in a note of all the external factors and risks involved and makes a long-term policy of the organization. It involves the determination of strengths and weaknesses, external risks, mission, and control system to implement plans.
On the basis of managerial level:
- Top level Plans: Plans which are formulated by general managers and directors are called top level plans. Under these plans the objectives, budget, policies etc. for the whole organization are laid down. These plans are mostly long term plans.
- Middle-level Plans: Managerial hierarchy at the middle level includes the departmental managers. A corporate has many departments like purchase department, sales department, finance department, personnel department etc. The plans formulated by the departmental managers are called middle-level plans.
- Lower level Plans: These plans are prepared by the foreman or the supervisors. They take the existence of the actual work place and the problems connected with it. They are formulated for a short period of time and called short term plans.
On the basis of time:
- Long Term Plan: Long term plan is the long-term process that business owners use to reach their business mission and vision. It determines the path for business owners to reach their goals. It also reinforces and makes corrections to the goals as the plan progresses.
- Intermediate Plan: Intermediate planning covers 6 months to 2 years. It outlines how the strategic plan will be pursued. In business, intermediate plans are most often used for campaigns.
- Short-term Plan: Short-term plan involves pans for a few weeks or at most a year. It allocates resources for the day-to-day business development and management within the strategic plan. Short-term plans outline objectives necessary to meet intermediate plans and the strategic planning process.
On the basis of use:
- Single Plan: These plans are connected with come special problems. These plans end the moment of the problems to be solved. They are not used once after their used. They are further re-created whenever required.
- Standing Plan: These plans are formulated once and they are repeatedly used. These plans continuously guide the managers. That is why it is said that a standing plan is a standing guide to solving the problems. These plans include mission, policies, objective, rules and strategy.