Page 60 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 3: Planning and Decision-making

2. Tactical plans: A tactical plan is concerned with what the lower level units within each Notes
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.

4. Contingency plans: Intelligent and successful management depends upon a constant pursuit
of adaptation, flexibility, and mastery of changing conditions. Strong management requires
a “keeping all options open” approach at all times - that’s where contingency planning
comes in.
Contingency planning involves identifying alternative courses of action that can be
implemented if and when the original plan proves inadequate because of changing
circumstances.

Keep in mind that events beyond a manager’s control may cause even the most carefully prepared
alternative future scenarios to go awry. Unexpected problems and events frequently occur.
When they do, managers may need to change their plans. Anticipating change during the planning
process is best in case things don’t go as expected. Management can then develop alternatives to
the existing plan and ready them for use when and if circumstances make these alternatives
appropriate.

Task Develop a plan for responding to disasters, considering the fact that you are the
operations manager at an upcoming paint company.

3.3 Levels of Planning

Managers follow various approaches to planning based on the extent of participation, authority
delegation and competency level of managers working at various levels, namely:
1. Top-down approach: In most family-owned enterprises, authority and responsibility for
planning is centralised at the top. The top management defines the mission, lays down
strategies, specifies action plans to achieve the stated goals. The blueprint is then passed
on to the people working at lower levels, who have very little to contribute to the process
of planning. The success of this approach is wholly dependent on the qualifications,
experience and capabilities of people working at the top level.

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