Hi every one,
There are so many planning areas and planning type here I mention some of them, I think these may be helpful for you.
The planning horizon determines the time frame for planning. Planning horizons are divided into short-, medium-, and long-term planning.
Short-Term Planning
The planning time frame in
short-term planning is usually a year or less. You use this type of planning when the business has clear-cut short-term goals, such as cutting costs,
increasing labor productivity by freezing new hires, and effectively training the workforce. Short-term planning is also suitable in situations where the industry
in which the business is operating is constantly changing and where it’s difficult to make reliable long-term projections.
Medium-Term Planning
Medium-term planning
usually covers a period of one to three years and is applicable if the business can reasonably plan the outlook for this time period. You might
develop a medium-term plan to increase market share in a particular segment of the business, for example.
Long-Term Planning
Planning is considered
long term when the duration of the plan exceeds three years. This type of planning usually involves the investment of a large amount of capital to
achieve company objectives. This is also applicable for businesses where projects have a long gestation period. In these types of industries, there is a
long time gap between initial investment and final realization of sales and profits; this is true for companies in the utility, steel, and biotechnology
industries, for example.
Planning Types
The planning type, which is based on the planning horizon and the granularity of the planning process, provides more clarity to the process by clearly differentiating the objective of the plan. We’ll discuss each of the planning types next.
Operative Planning
Operative planning is typically used for the short term and is generally conducted at a company’s operational level.This type of planning usually has an immediate objective in mind (e.g., to improve productivity by controlling variable costs). Operative plans rely on a bottom-up planning approach, in which the planners involved in executing the
plan are also involved in the creation of the plan. Employees at the bottom level of the hierarchy may be part of the planning process to make it
successful. Upon completion of the plan, they send the plan to their supervisors, and after approval by the supervisors, plan implementation begins.
Bottom-up
planning processes are very helpful for achieving employee commitment to the planning process. Involving employees in the planning process increases the
probability that the plan will be successful.
Tactical Planning
Tactical planning is associated with planning for the medium term and is generally conducted at a company’s division level. It’s suitable for projects that can be completed in fewer than three years. For example, you might start an initiative to improve the quality of a product, which may take two years to realize. Although the tactical plan
may be in consonance with the long-term plan, it may be developed at the middle management level.
Strategic Planning
Strategic planning is associated with planning for the long term and is generally conducted at the organizational level. Company management usually plays a major role in this type of planning. Let’s say a company decides to finance research and development to develop a new line of products. The products may take more than three years to develop, so the company may want to develop a plan to finance the new program using
strategic planning.
This top-down planning process usually begins at the company’s top level and trickles down to lower levels. The company’s top management agrees to the planning objective and process, which may be split into sub plans during the implementation process period and the lowest level of granularity. Operational planning has the shortest gestation period and the highest level of granularity.
the above pic showa the levels of planning in brief.
Regards,
Saida Reddy.G