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Intermediate Planning
The process of planning may be classified into different categories on Intermediate planning covers time frames of about 6
the following basis: months to 2 years and is contemplated by middle
management, which includes functional managers,
I. Nature of Planning department heads and product line mangers. They also
have the task of polishing the top managements strategic
a. Formal Planning plans.
Planning is formal when it is reduced to writing. When the The middle management will have a critical look at the
numbers of actions are large it is good to have a formal resources available and they will determine the most
plan since it will help adequate control. effective and efficient mix of human, financial and
material factors. They refine the broad strategic plans into
The term formal means official and recognized. Any more workable and realistic plans.
planning can be done officially to be followed or
implemented. Formal planning is aims to determine and c. Operational Planning
objectives of planning. It is the action that determine in
advance what should be done. Operational planning deals with only current activities. It
keeps the business running. These plans are the
b. Informal Planning responsibility of the lower management and are
conducted by unit supervisors, foremen etc. These are
An informal plan is one, which is not in writing, but it is short-range plans covering a time span from one week to
conceived in the mind of the manager. Informal planning one year.
will be effective when the number of actions is less and
actions have to be taken in short period. These are more specific and they determine how a
specific job is to be completed in the best possible way.
II. Duration Most operational plans are divided into functional areas
such as production, finance, marketing, personnel etc.
a. Short-Term Planning
Thus even though planning at all levels is important, since
Short term planning is the planning which covers less all levels are integrated into one, the strategic planning
than two years. It must be formulated in a manner requires closer observation since it establishes the
consistent with long-term plans. It is considered as direction of the organization.
tactical planning. Short-term plans are concerned with
immediate future; it takes into account the available IV. Use
resources only and is concerned with the current
operations of the business. a. Standing Plans
These may include plans concerning inventory planning Standing plan is one, which is designed to be used over
and control, employee training, work methods etc. and over again. Objectives, policies procedures,
methods, rules and strategies are included in standing
b. Long-Term Planning plans. Its nature is mechanical. It helps executives to
reduce their workload. Standing plan is also called routine
Long-term planning usually covers a period of more than plan. Standing or routine plan is generally long range.
five years, mostly between five and fifteen years. It deals
with broader technological and competitive aspects of the b. Single-use Plans
organization as well as allocation of resources over a
relatively long time period. Long-term planning is Single use plan is one, which sets a course of action for a
considered as strategic planning. particular set of circumstances and is used up once the
particular goal is achieved. They may include program,
Short-term planning covers the period of one year while budgets, projects and schedules. It is also called specific
long term planning covers 5-15 years. In between there planning. Single use plan is short range.
may be medium-term plans. Usually, medium term plans
are focusing on between two and five years. These may Source: https://www.businessmanagementideas.com/planning/planning-meaning-
types-and-advantages/3402
include plan for purchase of materials, production, labour,
overhead expenses and so on.
a. Strategic Planning
Source: https://www.britannica.com/topic/ekistics