The Role of Goals and Plans in Planning
Planning is often called the primary management function because it establishes the basis for all other functions. Planning involves two important elements: goals and plans.
Goals (often called objectives) are desired outcomes for individuals, groups, or entire organizations.
Types of goals
a. Financial goals versus strategic goals
Financial goals related to the financial performance of the organization while
strategic goals are related to other areas of an organization performance.
b. Stated goals versus real goals
Stated goals are official statements of what an organization says and what it wants its various
stakeholders to believe its goals are. Real goals are those that an organization actually
pursues, as defined by the actions of its members.
Types of Plans
Plans can be described by their breadth, time frame, specificity, and frequency of use
• On the basis of Breadth plans can be Strategic or operational plans. Strategic plans (long-term plans) are plans that apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment. Operational plans (short-term plans) are plans that specify the details of how the overall goals are to be achieved
• On the basis of Time frame plans can be Short-term or long-term plans. short-term plans are plans that cover one year or less, Long-term plans are plans with a time frame beyond three years.
• On the basis of Specificity plans can be Specific or directional plans. Specific plans are plans that are clearly defined and leave no room for interpretation Directional plans are flexible plans that set out general guidelines.
• On the basis of Frequency of use plans can be Single-use or standing plans A single-use plan is a one-time plan specifically designed to meet the needs of a unique situation. Standing plans are ongoing plans that provide guidance for activities performed repeatedly