1.4 Teams: Special Kinds of Groups
Before illustrating the main types of plans and applications,
let us present the major dimensions of plans in Figure 1.5.
Figure 1.5: Major dimensions of plans
Repetitiveness dimension of a plan
refers to the extent to which the plan is used over and over
Some plans are specially designed for one
situation that is relatively short-term in nature. Other plans
are designed to be used time after time for long-term recurring
The time dimension
refers to the length of time the plan covers. Strategic planning was defined as long- term in nature, while
tactical planning was defined as short- termed.
The scope dimension
refers to the proportion of the total management system at which
the plan is aimed. Some plans are designed to cover the entire open management system. This plan is often
referred to as a master plan. Other plans are developed to cover
only a portion of management system.
The level dimension
refers to the level of the organization at which the plan is
aimed. Top level plans are those designed for the
organization’s top management, whereas middle and lower level
plans are designed for middle and lower management.
The plan’s four major dimensions are:
Based on the previous discussion about the plan’s dimensions; we
can summarize the most common types of plans according to the
repetitiveness dimension in Figure 1.6.
Figure 1.6: Types of plans
1.4.1 The Standing Plans
Those include plans that are used over and over
again because they focus on organizational situations that occur
Examples for them are
is a standing plan that furnishes broad guidelines for
action, consistent with reaching organizational objectives.
are standing plans that outline a series of related actions
that must be taken to accomplish a particular task.
Rules: are standing plans that are designate
specific required action. A rule indicates what an
organization member should or should not do and allows no room
1.4.2 The Single Used Plans
Single used plans such as:
Program: is a single use plan designed to carry
out a specific project within an organization. The project itself is not
intended to remain in existence over the entire life of the
organization. Rather, it exists to achieve some purpose. That if
accomplished, will contribute to the organization’s long- term
is a single use financial plan that covers a specified length
of time. It is a statement that expresses the expected
results in numerical terms. It may be referred to as “a
Also, we can brief the most common types of plans according to
the time dimension in the following;
The strategy is the process of achieving a fit
between an organization’s capabilities and its evolving
environment to achieve a favorable position within the
Strategies pertain to those destiny-shaping decisions
The choice of technologies on which products are based
The development and release of new products
The processes for producing products and services
The way they are marketed, distributed, and priced
The way the firm responds to rivals
However, the planning process cannot and should not
cover every aspect of an individual’s job or an
organization’s activity. Planning should cover the
key elements of what is to be accomplished rather
than the details which are not critical to the
achievement of overall goals or objectives
b) Tactical or Operational Plan
This is concerned primarily with establishing
short- term goals and action programs. Organizations usually carry out
formal operational plans on a regular yearly basis however,
there are some differences between the strategic and the
tactical plans, and we can show these differences in Table 1.1.
Table 1.1: Major differences between strategic and tactical planning
Area of difference
developed mainly by upper-level
Developed mainly by lower-level
Facts on which to base planning
are relatively difficult to gather
are relatively easy to gather.
Amount of detail in plans
Plans contain relatively little amount
Plans contain substantial amount of
Length of time plans cover
Plans cover long period of time
Plans cover short period of time
How we can develop a strategic plan?
Strategic planning is a good example of the planning process.
Basically strategic planning includes developing alternative
courses of actions and choosing one of them. Thus, developing
strategic plan involves the following steps:
Determine the current domain of the enterprise in terms of the
scope (i.e., determining the products and services it offers and
What are the political, social, and economic trends we have to
consider? What product and/or technological changes we
anticipate will affect our organization?
Determine the current strengths and weaknesses. This means that
management must analyze the organizations operational,
financial, and managerial strengths and weaknesses.
Decide what target domain (or business) we want to be in and the
best strategy for being there. This means, that management must
develop alternatives and analyze each in light of the
organization’s strengths and weaknesses as well as the
opportunities and threats it will face.
Set specific objectives. Once you have developed a new strategic
plan, it should be quantified in terms of goals such as:
Ex.: Obtain a 20% share
of the soft drink market within 5 years, and double
advertising expenditures each year for the next 5
What are the main principles for having effective
There are many, among the most important of them:
Develop accurate forecasts
Gain acceptance for the plan
Make sure the plan is sound
Assign responsibility for planning
Keep the plan flexible
Revise your long- term plan every year
Make sure that the plan fits the situation
Why plans fail?
If managers know why plans fail, they can take steps to
eliminate the factors that cause failure and thereby increase
the probability that there plans will be successful. Plans
Corporate planning is not integrated into
the total management system,
There is a lack of understanding of the
different steps of planning process,
Management at different levels in the
organization has not properly engaged in or contributed to
Responsibility for planning is wrongly
vested solely in the planning department,
Management expects that plans developed
will be realized with little effort,
In starting formal planning, too much is
attempted at once,
Management fails to operate by the plan,
Management fails to grasp the overall
Financial projections are confused with
Inadequate inputs are used in planning.
Points to be Remembered
Most managers – in business and service
organizations today are at least familiar with the term planning
and its applications.
There is no completely agreement among
the people - even the researchers – with regard the definition
of planning, as each has his or her definition that represents
Among the most common definition for
planning: planning is the process by which an individual or
organization decides in advance on some future course of action.
The purpose of every plan and all
derivative plans is to facilitate the accomplishment of
enterprise purpose and objectives.
Planning is the primary management
function, but it is included in the other managerial functions.
Planning is a function of all managers,
although the character and breadth of planning will vary with
their authority and with the nature of policies and plans
outlined by their supervisors.
The efficiency of a plan is measured by
the amount it contributes to purpose and objectives.
The nature of planning can be figured
out from these major aspects of planning:
Contribution to purpose and objective.
Primacy of planning.
Pervasiveness of planning.
Efficiency of plans.
The importance of planning can be
figured out from the following points:
Planning offsets uncertainty and
Planning focuses the attention on the
Planning gains economical operations.
Planning facilitates control.
There are many factors affect the
effectiveness of planning.
There are many steps for developing any
plan (planning processes), they are:
Being aware of opportunity.
Considering the planning premises.
Determining and identifying the
Evaluating these alternatives.
Selecting the appropriate course of
Developing plans to pursue the chosen
Number zing plans by budget.
Putting the plans into action.
There are many outstanding benefits that
result from the statement of planning objectives, these are:
Objectives provide direction.
Objectives serve as motivators.
Objectives contribute to the management
Objectives are the basis for management
Objectives serve as a guide for
There are many types of plans; this
depends on the major dimensions of plans.
The major dimensions of plans are:
The scope dimension.
The level dimension.
Examples for plans: policies,
procedures, rules, programs, budgets, strategies, tactical.
There are many steps for developing
strategy, they are:
Determine the current domain of the
Determine the different trends (Social,
Determine the current strengths and
Decide the target domain.
Set specific objectives.
The main principles for effective
Develop accurate forecasts.
Gain acceptance for the plan.
The plan must be sound.
The plan must be flexible.
It must fit the situation.
There are many reasons for planning
failure, among the most important of them:
The plan is not integrated into the
total management system.
Management at different levels has not
properly engaged in or contributed to planning activities.
Management fails to operate by the
Using inadequate inputs in planning.
The failure of
management to grasp the overall planning process.