Page 59 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes 3.2 Types of Plans

Plans commit individuals, departments, organisations, and the resources of each to specific
actions for the future. Effectively designed organisational goals fit into a hierarchy so that the
achievement of goals at low levels permits the attainment of high-level goals. This process is
called a means-ends chain because low-level goals lead to accomplishment of high-level goals.
Three major types of plans can help managers achieve their organisation’s goals: strategic,
tactical, and operational. Operational plans lead to the achievement of tactical plans, which in
turn lead to the attainment of strategic plans. In addition to these three types of plans, managers
should also develop a contingency plan in case their original plans fail.
1. Operational plans: The specific results expected from departments, work groups, and
individuals are the operational goals. These goals are precise and measurable.

Example: (a) Process 150 sales applications each week
(b) Publish 20 books this quarter

Thus an operational plan is one that a manager uses to accomplish his or her job
responsibilities. Supervisors, team leaders, and facilitators develop operational plans to
support tactical plans. Operational plans can be a single-use plan or an ongoing plan.

(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.

Example:
(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.

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