Definition Of Planning In Business Management
Have you ever heard the saying 'Those who fail to plan, plan to fail'?While I can't speak to all facets of life, this is certainly true in business.Then, in true planning fashion, there are also plans to backup plans that fail. To better understand how each type of plan is used by managers, let's take a look at an example from Nino's Pizzeria and how Tommy, Martha and Frank carry out their planning responsibilities.To best understand the relationship between the different types of plans, let's start at the top.Try it risk-free This lesson will explain the four types of planning used by managers, including strategic, tactical, operational and contingency planning.Terms, such as single-use plans, continuing plans, policy, procedure and rule, will also be defined.Single-use plans are those plans that are intended to be used only once.
As a tactical planner, Martha needs to create a set of calculated actions that take a shorter amount of time and are narrower in scope than the strategic plan is but still help to bring the organization closer to the long-term goal.
Strategic plans are designed with the entire organization in mind and begin with an organization's mission.
Top-level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of the desired future and long-term goals of the organization.
If you think about these three types of plans as stepping stones, you can see how their relationship to one another aids in the achievement of organizational goals.
Operational plans are necessary to attain tactical plans and tactical plans lead to the achievement of strategic plans.