The components of planning are objectives, strategies, policies, procedures, rules, methods, programmes, budgets, schedules and standards. Policies, procedures, rules, methods and standards are standing plans for repeated situations; programmes, budgets and schedules are single-use plans; objectives and strategies set overall direction.
A plan is not one document. It is a set of building blocks that work at different levels: a broad objective at the top, strategies and policies that guide choices, procedures and rules that guide daily work, and budgets and schedules that put numbers and dates on it all. Harold Koontz and Cyril O’Donnell described these as the types of plans, and textbooks often call them the components or elements of planning.
To make them concrete, we follow one example throughout: a regional chain of 40 pharmacies planning its next year. For what makes the planning itself good, see the elements of effective planning.
10 Components of Planning
1. Objectives
The end results the organisation wants. They should be specific and measurable. Pharmacy example: grow revenue by 15% and open 8 new stores this financial year.
2. Strategies
The broad approach chosen to reach objectives, including how resources will be used. Open stores near hospitals and add online ordering with 2-hour delivery.
3. Policies
General guidelines that shape decisions and leave room for judgement. We match any local competitor’s price on generic medicines.
4. Procedures
Step-by-step sequences for routine tasks, so they are done the same way every time. How a prescription is received, checked, filled, billed and recorded.
5. Rules
Specific do’s and don’ts with no discretion. Schedule H drugs are never sold without a valid prescription.
6. Methods
The best way to perform one step within a procedure. Use barcode scanning to pick stock instead of manual lookup.
7. Programmes
A bundle of objectives, steps, resources and timing for a specific project. The 8-store expansion programme, with site selection, licences, fit-out, hiring and launch.
8. Budgets
Plans expressed in numbers: money, units or hours. Capital budget of ₹4 crore for new stores; monthly sales and expense budgets per store.
9. Schedules
Dates and sequences for activities. Two stores open each quarter; licences filed 60 days before each opening.
10. Standards
Benchmarks for judging performance, which link planning to control. Prescriptions filled within 10 minutes; stock-outs below 2% of items.
Standing Plans vs Single-Use Plans
| Type | Used for | Components |
|---|---|---|
| Standing plans | Repeated situations | Policies, procedures, rules, methods, standards |
| Single-use plans | One-time projects or periods | Programmes, budgets, schedules |
| Directional | Overall direction | Objectives, strategies |
See also the types of planning and the steps in the planning process.
