Planning may be classified on the basis of various objectives, needs, and circumstances. There ate many different types of planning in business management.
Planning is a mental or conceptual exercise.
It, therefore, involves rational decision making, which requires imagination, foresight, sound judgment: and involves thinking before doing the thinking on the basis of facts and information
Types of Planning in Business Management
Following are the types of planning in management:
1. Top Level Planning
The plans and policies which are determined at the top-level management are known as the top-level planning, like- general policies, objectives, goals, budget determination, etc.
2. Requestive Planning
Some plans are prepared on the request of the subordinates or colleagues, These are called requestive planning, like- suggestion plan.
3. Imposed Planning
The plan which is not adopted willingly, but is imposed by external Agencies, like- government, trade unions, and the Chamber of Commerce, etc. are known as Imposed Planning.
4. Standing Planning
The plans which are frequently used are known as standing planning.
These plans are of a permanent nature.
These plans include plans relating to policies, organization, Framework, nature of production, and standard process, and methods of the organization.
5. Single Cycle Planning
Single Cycle Planning means such planning which is formulated for fulfilling specific objectives and for solving specific problems and automatically end with achievements of the objectives or solution of the problem.
Such plans are also known as Ad-hoc Planning.
6. Routine Planning
Plans relating to day to day activities of the organization at various levels are known as routine planning.
These plans are prepared as subsidiary plans of the comprehensive plan.
7. Creative Planning
The plans prepared for executing new policies, technical changes, new systems, and Research are called creative plans.
8. Corrective Planning
The plans prepared for improvements in the objectives, policies, modalities, sales, standard, production system, and long-term plans of the organization, as a result, of the changes occurring in the real world, are known as corrective plans.
9. Comprehensive or Master Planning
By Comprehensive or master planning, we mean such planning which concentrates on all the constitutions of institutions, Like- goals, interests, problems, and other aspects, etc.
In the master plan, the detailed analysis is carried out with respect to the goals and problems of all the departments.
10. Functional or Departmental Planning
This plan should be prepared in accordance with the objectives of the comprehensive plan.
11. Short-Term Planning
Generally, such planning which is for a period of less than one year is known as a short-term planning.
The objectives of such planning are to nourish one’s own organization by achieving the targets for production and supply of its present commodities or services in the existing market.
A short term plan is also called operational planning or tactical planning.
12. Middle Term Planning
Planning which is for the period of 1 year to 5 years is called middle term planning, within which sub-plans prepared for the success of long term planning are included.
13. Long-Term Planning
Long-term planning means the plan prepared for a period of more than five years.
In plans, the objectives of the enterprise are determined and policies for achieving these objectives are also decided.
Besides, decisions are also taken in respect of the activities, which are to be implemented for achieving the long-term objectives.
14. Administrative Strategic Planning
Administrative strategic planning implies such planning which is formulated by the high-level management of the situation for determining long-term targets and policies.
For that, the future of the institution is determined with reference to the changing circumstances, like, trade cycles, market conditions, innovations and relationships with other Institutions, etc.
This planning is the indicator of the objectives and managerial outlook of the institution. In such planning, strategies are worked out by evaluating future business circumstances.
So, this planning is also known as strategic planning.
15. Operational Planning
It is related to the actual execution of activities of the institution.
This is formulated by the executive management on the basis of the main plan.
16. Project Planning
The planning related to any specific work or problem of the institution.
The complicated and high-cost activities, important from the viewpoint of time, Like- activities related to publicity campaign, innovation research, building up of the new plant, sitting up of information system and market research, etc. are known as project planning.
17. General Planning
The plan prepared by the top level (general management) is known as the top-level planning.
The top-level manager or executives formulate general goals, policies, programs, and budget, etc. for the institution, under this planning.
18. Middle-Level Planning
The planning done by middle-level management (executive officers) for achieving the goals and executing the policies is called middle-level planning.
19. Lower Level Planning
Sometimes lower level officers (supervisors) also prepare plans for achieving the targets.
This is called lower-level planning.
These plans are mainly operative in nature, which are prepared for the short term.
20. Schedule Planning
Schedule planning implies such planning which is for the short term.
In this planning, time values are determined for each activity included in the program.
This planning gives emphasis on work time relationship.
The practical approach is introduced to the total programme.
21. Product Planning
It is related to decisions of product, new products, future sales, etc.
22. Profit Planning
Profit planning means directing the institution about the time, reasons, methods, and modalities of earning profits, over and above the costs.
Thus, now you know the types of planning in business management.