The failure of some managers is inability to recognize the several types of plans. This
makes difficulty in making planning effective. Plans are classified as:-
1. PURPOSE AND MISSIONS & OBJECTIVES
This mission identifies the basic functions or tasks of an enterprise. However, an
objective is the end toward which an activity is aimed. Objectives in other words. Are
ends toward which organizational and individual activities or directed. Objectives are
the end point toward which all managerial functions, (Planning, Organizing, Leading,
Staffing, and Controlling) are aimed. Objectives form a hierarchy ranging from
individual objectives to broad aims.
2. STRATEGIES & POLICIES
Strategies and policies are the basis of operational plans and framework for plans.
Both gives direction and are closely related. The word strategy is derived from a
Greek word “STRATEGOS” meaning General. Strategies is the determination of the
basic long term objectives of an enterprise and the adoption of courses of action and
allocation of resources necessary to achieve these goals policies are general
statements or understandings that guide manager’s thinking and decision making.
3. PROCEDURE & RULES
Procedures are plans that establish a required method of handling future activities.
Briefly, procedures guide actions. Rules are those required actions or non-actions
allowing no discretion. Rules are simply called simple plans.
4. PROGRAMMS
Programs are a complex of goals, policies, procedures, rules, tasks and steps to be
taken, resources to be employed and other elements necessary to carryout a given
course of action and normally supported by capital and operating budgets.
5. BUDGET
A budget is a numerized program. It is a statement of plans and expected results
expressed in numerical terms or forms. The budget of an enterprise represents the
sum total of income and expenses with profit or surplus.
