What Is Planning In Business Management

What Is Planning In Business Management-62
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.Managers find themselves planning for all sorts of things.

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.Managers find themselves planning for all sorts of things.

Single-use plans are those plans that are intended to be used only once.

They include activities that would not be repeated and often have an expiration.

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.

Tactical planning for Martha might include things like testing a new process in making pizzas that has been proven to shorten the amount of time it takes for prepping the pizza to be cooked or perhaps looking into purchasing a better oven that can speed up the amount of time it takes to cook a pizza or even considering ways to better map out delivery routes and drivers.

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 also tend to require multilevel involvement so that each level of the organization plays a significant role in achieving the goals being for.Top-level managers, such as Tommy, develop the organizational objectives so that middle- and lower-level managers can create compatible plans aligned with those objectives.Operational plans sit at the bottom of the totem pole; they are the plans that are made by frontline, or low-level, managers.All operational plans are focused on the specific procedures and processes that occur within the lowest levels of the organization.Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.For example, when Martha, the middle-level manager at Nino's, learns about Tommy's strategic plan for increasing productivity, Martha immediately begins to think about possible tactical plans to ensure that happens.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.Creating a monthly budget and developing a promotional advertisement for the quarter to increase the sales of a certain product are examples of how Frank would utilize single-use planning.Ongoing plans are those plans that are built to withstand the test of time.

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