Page 60 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes (a) Single-use plans: These plans apply to activities that do not recur or repeat. A one-
time occurrence, such as a special sales program, is a single-use plan because it deals
with the who, what, where, how, and how much of an activity.

Example: A budget: Because it predicts sources and amounts of income and how much
they are used for a specific project.
(b) Continuing or ongoing plans: These are usually made once and retain their value over
a period of years while undergoing periodic revisions and updates.

Examples:
(i) A policy: Because it provides a broad guideline for managers to follow when dealing with
important areas of decision making. Policies are general statements that explain how a
manager should attempt to handle routine management responsibilities. Typical human
resources policies, for an instance, address such matters as employee hiring, terminations,
performance appraisals, pay increases, and discipline.
(ii) A procedure: Because it explains how activities or tasks are to be carried out. Most
organisations have procedures for purchasing supplies and equipment, for example. This
procedure usually begins with a supervisor completing a purchasing requisition. The
requisition is then sent to the next level of management for approval. The approved
requisition is forwarded to the purchasing department. Depending on the amount of the
request, the purchasing department may place an order, or they may need to secure
quotations and/or bids for several vendors before placing the order. By defining the steps
to be taken and the order in which they are to be done, procedures provide a standardized
way of responding to a repetitive problem.
(iii) A rule: Because it tells an employee what he or she can and cannot do. Rules are “do” and
“don’t” statements put into place to promote the safety of employees and the uniform
treatment and behavior of employees. For example, rules about tardiness and absenteeism
permit supervisors to make discipline decisions rapidly and with a high degree of fairness.
2. Tactical plans: A tactical plan is concerned with what the lower level units within each
division must do, how they must do it, and who is in charge at each level. Tactics are the
means needed to activate a strategy and make it work.
Tactical plans are concerned with shorter time frames and narrower scopes than are strategic
plans. These plans usually span one year or less because they are considered short-term
goals. Long-term goals, on the other hand, can take several years or more to accomplish.
Normally, it is the middle manager’s responsibility to take the broad strategic plan and
identify specific tactical actions.
3. Strategic plans: A strategic plan is an outline of steps designed with the goals of the entire
organisation as a whole in mind, rather than with the goals of specific divisions or
departments. Strategic planning begins with an organisation’s mission.
Strategic plans look ahead over the next two, three, five, or even more years to move the
organisation from where it currently is to where it wants to be. Requiring multilevel
involvement, these plans demand harmony among all levels of management within the
organisation. Top-level management develops the directional objectives for the entire
organisation, while lower levels of management develop compatible objectives and plans
to achieve them. Top management’s strategic plan for the entire organisation becomes the
framework and sets dimensions for the lower level planning.

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