4 TYPES OF PLANNING

1. OPERATIONAL PLANNING 2. INTERMEDIATE PLANNING 3. CONTINGENCY

PLANNING 4. STRATEGIC PLANNING
1. OPERATIONAL PLANNING 1.What is OPERATIONAL planning? >short-range planning
that deals with day-to-day maintenance activities >performed at a unit or departmental level
>done as part of the overall strategic planning Ex1: Unit Director plans a meeting of staff nurses
to reinforce knowledge gained from orientation of new staff… may get endorsement from the
Division Chief Nurse who has set her own staff development plan for the whole division. Ex2:
Unit Director reviews with staff medicine supplies
STEPS IN OPERATIONAL PLANNING (Source: Supervision, Alfred W. Travers) 1.Set your
objectives 2.Set your priorities 3.State your assumptions 4.Review any and all limitations
5.Develop your primary and back-up plans 6.Implement the plan 7.Set up a control system and
follow up on progress and results
ILLUSTRATION: STEPS IN OPERATIONAL PLANNING

2. INTERMEDIATE PLANNING 2.What is INTERMEDIATE planning? >a planning that is

usually done in the middle of the fiscal year >process: mid-year appraisal followed by affirming
ongoing plans and setting forth new plans for the rest of the year >often covers issues about
performance, resources, and staff development

3. CONTINGENCY PLANNING 3.What is CONTINGENCY planning? >managing the

problems that interfere with getting work done >could be reactive or proactive Ex: 2 nurses for
an 8-hour night shift in the emergency room called in sick…What contingency plans would you
do?

4. STRATEGIC PLANNING 4.What is STRATEGIC planning? >is defining and prioritizing

long-term plans that includes examining an organization’s purpose, mission, philosophy and
goals in the light of its external environment >it is proactive and future-oriented, focuses on a 3-5
year operation of the organization >it generally aims at creating an image of the desired future
and design ways to make plans a reality

Scope of strategic planning (from: ANN MARRINER TOMEY) • External assessment

>opportunities and threats • Internal assessment >strengths and weaknesses • Priority issues and
programs • Vision, mission, values, philosophy • Goals: >strategic – organization >operational –
division, unit • Objectives • Strategies >timelines >plans • Policies and procedures •
Implementation • Evaluation >production/operations >finance >marketing

STEPS IN STRATEGIC PLANNING (Source: MARQUIS & HUSTON, KELLY-

HEIDENTHAL, & TOMEY) 1.Analyze the organization’s internal and external environment
(SWOT analysis) 2.Conduct a stakeholder assessment 3.Define the purpose of the organization
4.Clarify values important to the organization 5.Set the goals and objectives 6.Communicate the
goals and objectives to the constituents 7.Identify strategies – set time lines and tasks 8.Estimate
and allocate resources 9.Develop and communicate a marketing or business plan 10.Establish a
system for the implementation and monitoring of policies, procedures, and rules 11.Establish a
system for exchanging information and building consensus 11.Provide a mechanism for
evaluation

SWOT Analysis (from: KELLY-HEIDENTHAL AND MARRINER TOMEY)

EXTERNAL ENVIRONMENT

Opportunities
New programs & services, Advanced technology, Population growth, Legislative changes, Physician
recruitment and retention, New markets, Managed care, Prestige in the community

Threats
-Competition, -Staff shortages, -Increased legislative regulations, -Unionization, -Cuts in funding of
medical education, -Revenue loss for caring for the uninsured, -Decreased reimbursement

INTERNAL ENVIRONMENT

Strengths
Financial status Supporting alumni Programs & services Employee suggestion program Equipment
Administrative team Staff expertise Location Marketing Patient satisfaction

Weaknesses
Union demands Lag time for management information system Escalating cost for benefits & salaries
Unprofitable services

Planning is the most crucial part of management. It comes first in the core management
functions, POSDCORB (Planning, Organising, Staffing, Directing, Coordinating, Reporting and
Budgeting).

Most commonly, planning gives the direction for implementing a business strategy. But, there is
more to the approach in this process. It is not just necessary for long-term goals, but even
repetitive processes. That’s how there are different types of planning used in management.

Today, the blog will cover the 4 types of planning in management and help you understand its
importance.

Importance of Planning in Management

Some reasons to know why planning in management is important.
Establishes Direction

Planning is all about creating objectives and meeting them without any hassle. When you plan
well, you have clarity on what it will take to achieve the goals. In a formal or informal
organisation, proper planning gives the group or team direction for meeting the objectives.

Removes Risks

Planning removes risks involved in the decisions you make. Sometimes, plans are made to
withstand unforeseen circumstances. By anticipating risks in the planning process, you can
reduce uncertainties in the future.

Improves Efficiency

In an organisation, planning also looks into what can be done better and cost-effectively. Without
planning, a department may unknowingly utilise too many or less resources.

4 Types of Planning in Management

Now that you got a gist of its importance, here are the 4 types of planning in management.

Operational Planning

It is the kind of planning required for day-to-day activities. Organisations use such kind of
planning with extreme detail to clearly identifying the who, what, when, where and why of all
parties involved.

And, there are some variations within it.

Operational planning can be of two types – either single-use plans or ongoing plans.

Single Use Plans

As the name suggests, single-use plans can be used only until the objective is achieved, after
which they are of no purpose.

Example of single-use plan

You can think of single-use plan in the context of a marketing campaign. There is one specific
goal, and once it is achieved, the marketing department may start with a different plan for
another purpose.

Ongoing Plans
Ongoing plans are repetitive in nature and can be modified for evolving purposes in the future.
They are also characterised by short-term plans.

Example of an ongoing plan

An easy example of an ongoing plan is perhaps the planning that goes into the recruitment of
employees in an organisation. The HR department’s planning here is repetitive and short term.
Once the objective is achieved, the same process is followed in the future with little or no
modifications.

Maybe the Top recruitment courses will steer your interest in the domain more!

Contingency Planning

Also known as ‘special planning’ or colloquially 'Plan B', it is used for situations when changes
cannot be foreseen. It is that ‘what if’ scenario that a business manager needs to consider so that
the company does not face losses. That ‘what if’ scenario can be loss of data in a data security
firm, failed product in the market, etc.

Probably the recent damaging ‘what if’ scenario for many businesses was the pandemic. It was
unprecedented. Many organisations that did not have a solid contingency plan had to lay off their
employees, and most small businesses had to shut shop completely. The ones who did, shifted
their focus to growth prospects in the cloud or digital technologies.

Strategic Planning

Strategic planning is used in light of achieving big goals in the long term. It is more of a high-
level planning done by the top-level managers in the organisation.

Such a kind of planning in management is used for starting a business. A strategic plan includes
the vision and mission of the company. It also includes defining timelines, establishing KPIs
(key performance indicators) and tracking their progress.

Free business strategy courses on our platform are offered by some of the best instructors. These
should sharpen your planning game too!

Its use is also seen when there is a sudden change in the market trend, and the business has to
adapt to it within a specific timeline.

Tactical Planning

Tactical planning refers to task prioritisation for achieving short term goals. This is one of the
crucial types of planning in management that helps achieve those goals as prescribed in a
strategic plan.
In an organisation, tactical planning is approached by mid-level management. The goals to be
achieved are set for one or two departments and then moving on to the next in a tactical plan.

Discover how you can stay more organised with tracking and maintaining data with our blog on
What is a Management Information System?

How the Types of Planning in Management Work

In an organisation, these types of planning generally follow a specific order.

Strategic planning is considered to happen first. Followed by that, is tactical planning. Then
comes operational planning, which is followed by contingency planning.

Let’s elaborate on that.

Strategic planning starts with the top management. Then, the middle management focuses on
tactical planning to achieve the goals defined through strategic planning.

While goals are set on the top and middle levels, the daily activities are important to plan. If
there are changes to be made after monitoring the progress, they are done. This is done at the
level of operational planning.

A contingency plan is used in special circumstances when there are unexpected changes.

Who is Responsible for Planning in Management?

It is generally the top level of management that is in charge of planning in an organisation. Now,
it depends if subordinates are involved in the planning process depending on the leadership style
of the organisation.

Parting Thoughts
These are the four types of planning in management that you should know as a manager. If you
aspire to be one, read on management theories and principles of management. While you learn
such concepts, take up the best management courses online to move up in your career faster.
And, don’t forget to ‘plan’ out your upcoming interviews with the top managerial round
interview questions!

Explore Business Management Studies to uncover leading colleges, comprehensive programs,

online courses, and promising career paths!

FAQs on Planning and Importance to Organisations

Why is understanding the planning function crucial in the realm of management?
How do the various types of planning aid organisations in achieving larger objectives under
different leadership styles?

How do different leadership styles influence the implementation of various planning types?

How does strategic planning contribute to organisational success under various leadership
styles?

How does an understanding of diverse planning types contribute to organisational

adaptability across varying structures?