Types of Plans

1. On the basis of time and period

I) Short term/run plans. (up to 1 year)

II) Intermediate/medium plan (1 to 3 years)

III) Long term/run plans (more than 5 years)

2. On the basis of formality

I) Formal plans (Documented)

II) Informal plans (Undocumented)

3. On the basis of nature

I) Permanent or Standing plans

II) Ad-noc or Temporary plans

I) Permanent or Standing plans

Those plans which are formulated for ongoing or repeative affairs (activities) of a business organization those handle by permanent or regular employees of the organization are known as permanent or continuous plans.

II) Ad-noc plans

Those plans formulated for single use and for a specific purpose and formulated by consellence (Generally are known as ad-noc plans.

4. On the basis of nature or levels of management

On the basis of levels or nature of management plan can be divided into three types:

I) Strategic plans

These plans prepare by top levels management covering overall activities of the organization and making a long span of time are known as strategic plans these are also known as co-operative plans. The management should be aware about the opportunities and interest while preparing such strategic plans. Such plans may show external social responsibilities of the business and should be based on realistic data or information.

II) Tactical plans or Divisional plans

Those plans prepared by middle levels management or by functional management to make proper functioning of their functions or to cover the activities of one particular department are known as tactical plans. Such plans are prepared to achieve goals or targets set by strategic plans.

III) Operation plans

Those plans prepared by lower level managers covering one particular unit or section to meet the goals or targets as set by tactical or departmental plans are known as operational plans. Generally operational plans are formulated for the short period.

5. On the basis of approach of management

On this basis plans can divided into two types:

I) Administrative plans (Hanery Foyar plans)

II) Operational plans (Taylor plans)

I) Administrative plans

Those relating to regular activities of business specially policies making rules and regulation formulating etc and prepared by higher authority can be regarded as administrative plans.

II) Operational plans

Those plans formulated for smooth operation of a business concerning special functions and generally formulated by the lower level management are known as operation plans.