There are nine types of plans, such as, philosophy, purpose, objectives, strategies, policies, procedures and rules, programmes and budgets. Now we shall discuss in brief each of these types of plans.
- Philosophy: The organisations’ role that they wish to play in society in terms of philosophy. The philosophy of the company should have clarity of thought and action in the accomplishment of economic objectives of a country. The philosophy bridges the gap between society and the company.
- Purpose: Every kind of organized group activities or operations has a purpose. For example, the purpose of a bank is to accept deposits and grant loans and advances.
- Objectives: Objectives are the ends towards which organisational activity is aimed. Every department has its own objectives which may not be completely same as of the other department or organisation.
- Strategies: Strategy is determination of the basic long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals.
- Policies: Policies are general statements or understandings which guide or direct thinking and action in decision making. However, all policies are not statements.
- Procedure and Rules: Procedures are plans that establish a desired method of handling future activities. They detail the exact manner in which a certain activity must be accomplished.
- Programmes: These are complexes of goals, policies, procedures, task assignment rules, steps to be taken, or sources to be employed and other elements necessary to carry out a given course of action.
- Budget: A budget is a statement of expected results in terms of members. It may be referred to as a numerical programme. Cash budget, sales budget, capital expenditure budget are some of the examples of budget.
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