1.

Type of planning

Ans: Strategic planning is a process in which an organization's leaders define their vision for the
future and identify their organization's goals and objectives. The process includes establishing the
sequence in which those goals should be realized so that the organization can reach its stated vision.
Strategic planning typically represents mid- to long-term goals with a life span of three to five years,
though it can go longer. This is different than business planning, which typically focuses on short-
term, tactical goals, such as how a budget is divided up. The time covered by a business plan can
range from several months to several years. The product of strategic planning is a strategic plan. It is
often reflected in a plan document or other media. These plans can be easily shared, understood and
followed by various people including employees, customers, business partners and investors.
Organizations conduct strategic planning periodically to consider the effect of changing business,
industry, legal and regulatory conditions. A strategic plan may be updated and revised at that time to
reflect any strategic changes
Businesses need direction and organizational goals to work toward. Strategic planning offers that
type of guidance. Essentially, a strategic plan is a roadmap to get to business goals. Without such
guidance, there is no way to tell whether a business is on track to reach its goals.
The following four aspects of strategy development are worth attention:
1. The mission. Strategic planning starts with a mission that offers a company a sense of
purpose and direction. The organization's mission statement describes who it is, what it
does and where it wants to go. Missions are typically broad but actionable. For example,
a business in the education industry might seek to be a leader in online virtual
educational tools and services. Example: Google's mission is to "organize the world's
information and make it universally accessible and useful."
2. The goals. Strategic planning involves selecting goals. Most planning uses SMART
goals -- specific, measurable, achievable, realistic and time-bound -- or other objectively
measurable goals. Measurable goals are important because they enable business
leaders to determine how well the business is performing against goals and the overall
mission. Goal setting for the fictitious educational business might include releasing the
first version of a virtual classroom platform within two years or increasing sales of an
existing tool by 30% in the next year. Example: A technology company may set a
goal to increase its market share by 15% within the next three years.
3. Alignment with short-term goals. Strategic planning relates directly to short-term,
tactical business planning and can help business leaders with everyday decision-making
that better aligns with business strategy. For the fictitious educational business, leaders
might choose to make strategic investments in communication and collaboration
technologies, such as virtual classroom software and services but decline opportunities
to establish physical classroom facilities.
 4. Evaluation and revision. Strategic planning helps business leaders periodically evaluate
progress against the plan and make changes or adjustments in response to changing
conditions. For example, a business may seek a global presence, but legal and regulatory
restrictions could emerge that affect its ability to operate in certain geographic regions.
As result, business leaders might have to revise the strategic plan to redefine objectives
or change progress metrics.
 Quarterly reviews. Once a quarter is usually a convenient time frame to revisit assumptions made in the

planning process and gauge progress by checking metrics against the plan.

 Annual reviews. A yearly review lets business leaders assess metrics for the previous four quarters and

make informed adjustments to the plan.

Types of strategic plans
Strategic planning activities typically focus on three areas: business, corporate or functional. They
break out as follows:
 Business. A business-centric strategic plan focuses on the competitive aspects of the
organization -- creating competitive advantages and opportunities for growth. These
plans adopt a mission evaluating the external business environment, setting goals, and
allocating financial, human and technological resources to meet those goals. This is the
typical strategic plan and the main focus of this article.
 Corporate. A corporate-centric plan defines how the company works. It focuses on
organizing and aligning the structure of the business, its policies and processes and its
senior leadership to meet desired goals. For example, the management of a research
and development skunkworks might be structured to function dynamically and on an ad
hoc basis. It would look different from the management team in finance or HR.
 Functional. Function-centric strategic plans fit within corporate-level strategies and
provide a granular examination of specific departments or segments such as marketing,
HR, finance and development. Functional plans focus on policy and process -- such
as security and compliance -- while setting budgets and resource allocations.
In most cases, a strategic plan will involve elements of all three focus areas. But the plan may lean
toward one focus area depending on the needs and type of business

Steps of Strategic planning:

1.Define the mission and vision
2 Conduct a SWOT Analysis (Strengths, Weakness, Opportunities, threats
3.Set goal and objective
4. Formulate the strategies
5.develop action plan
6.Allocate the resource
7.implement the plan
8.monitor and evaluate
9.adapt and adjust
10 Review and refine

2. Operational Planning:
Operational planning is a type of planning that focuses on the day-to-day activities and processes within an
organization. It bridges the gap between strategic planning (which looks at long-term goals and overall
direction) and tactical planning (which involves the implementation of specific strategies). Operational
planning is more short-term and is concerned with the immediate future, often covering a period of one year
or less. A company needs a strategy plan, but that’s not enough. To ensure that your organization’s larger
goals are achievable, you need an operational plan to manage the day-to-day tasks. Operational plans do not
have to be reserved for large companies. Individuals and small businesses can also benefit with
operational planning. Operational planning is a documented plan that outlines the goals and key objectives of
an organization, and how they can be achieved. It ensures that team members understand their
responsibilities as well as what they need to do.

Advantage of operational planning:1. Increase team productivity

2.Boost the organization profitability
3.Increases competitive advantage
Disadv. 1. Human error possible 2. Interdependency amongst parts

3. Tactical / Coordinated Planning ☹intermediate planning to implement the strategies outlined in the strategic
planning , specific actions and initiative over 1-3 year period to achieve strategies goal.
Tactical planning is an intermediate-term planning process that translates the broader strategies
outlined in the strategic plan into specific, actionable initiatives. While strategic planning focuses on
long-term goals and overall direction, tactical planning drills down into the specific steps, resources,
and actions required to implement those strategies. Tactical plans typically cover a period of one to
three years.
Key features of tactical planning include:
a. Specificity: Tactical plans are more specific and detailed than strategic plans, outlining the
who, what, when, and how of implementing strategies.
b. Resource Allocation: They involve the allocation of resources to support the tactical
initiatives.
c. Coordination: Tactical plans often require coordination across different departments or
teams to ensure that everyone is working towards common objectives.
d. Alignment with Strategy: Tactical plans directly align with and support the broader strategic
goals of the organization.
4. Coordinated Planning:
The term "coordinated planning" generally refers to the process of ensuring that different plans
within an organization are synchronized ( happened) and aligned to achieve common goals. This
coordination can occur at various levels, including strategic, tactical, and operational planning.
Key aspects of coordinated planning include:
a. Integration of Plans: Coordinated planning involves integrating the various plans across
different levels of the organization to avoid conflicts or duplication of efforts.
b. Communication: Effective communication is essential to ensure that different departments
or teams are aware of each other's plans and can collaborate seamlessly.
c. Consistency: Coordinated planning aims to achieve consistency in the execution of plans to
prevent disjointed or conflicting activities.
d. Feedback Loops: Establishing feedback mechanisms to allow for adjustments and
refinements based on the performance of various plans.

In summary, tactical planning is an intermediate-term planning process that focuses on implementing specific
strategies, while coordinated planning involves aligning and integrating different plans across the organization
to ensure a unified and effective approach to achieving common objectives.
 5. Formal & informal planning:
6. Formal Planning: It is a well-planned document with written record of what the organization
intends to do within a given time frame
a. Structured Process: Formal planning is a structured and systematic approach to
setting goals, defining strategies, and outlining specific steps to achieve objectives. It
follows a formalized process with documented procedures.
b. Long-Term Perspective: Formal planning often involves a longer-term perspective,
addressing the organization's strategic goals and objectives over an extended
period, such as three to five years.
c. Involvement of Key Stakeholders: Formal planning typically involves the
participation of key stakeholders, including top-level management, department
heads, and other relevant parties. It is a collaborative process that aims to ensure
alignment throughout the organization.
d. Documentation: The outcomes of formal planning are usually documented in
written plans, including strategic plans, tactical plans, operational plans, and
associated documents such as budgets.
e. Resource Allocation: Formal planning includes the allocation of resources, both
human and financial, to support the implementation of the outlined strategies and
achieve the specified goals.
f. Monitoring and Control: There is a systematic process for monitoring progress
against the plan, with predefined performance indicators. Formal planning allows for
adjustments and corrections based on regular assessments.
7. Informal Planning: It is unstructured ,poorly designed plan which are orally
communicated and not recorded
a. Flexible and Adaptive: Informal planning is more flexible and adaptive. It often
involves spontaneous decisions and adjustments to address immediate needs or
emerging opportunities without following a rigid structure.
b. Short-Term Focus: Informal planning is often associated with short-term goals and
day-to-day operations. It is reactive and responsive to the current business
environment.
c. Limited Documentation: Unlike formal planning, informal planning may not be
extensively documented. It can involve verbal agreements, informal discussions, and
quick decisions made on the go.
d. Decentralized Decision-Making: Informal planning may occur at various levels of the
organization, and decisions are sometimes made by individuals or teams without
requiring formal approval from higher authorities.
e. Creativity and Innovation: Informal planning allows for more creativity and
innovation, as it encourages experimentation and the exploration of new ideas
without the constraints of formal processes.
f. Adaptability: Informal planning is well-suited for environments where rapid
adaptation to change is crucial. It allows organizations to respond quickly to
unforeseen challenges or opportunities.

In many organizations, both formal and informal planning coexist. While formal planning provides a
structured framework for achieving long-term objectives, informal planning allows for agility and
responsiveness in the face of dynamic and unpredictable circumstances. The balance between
formal and informal planning depends on the nature of the organization, its industry, and the
external environment in which it operates
 8. Corporate and functional planning
Corporate planning and functional planning are two levels of planning within an organization, each serving a
distinct purpose and scope. Let's explore the characteristics of each:
1. Corporate Planning:
 Scope: Corporate planning, also known as strategic planning, involves the development of
plans at the highest level of the organization. It focuses on the overall direction, purpose, and
goals of the entire company.
 Time Horizon: Corporate planning typically has a long-term time horizon, covering several
years. It sets the vision for the organization and outlines strategies to achieve that vision.
 Key Components: Corporate plans include the organization's mission statement, vision
statement, overall goals, and high-level strategies. It addresses questions such as "What
business are we in?" and "Where do we want to be in the future?"
 Involvement of Top Management: Corporate planning is primarily the responsibility of top-
level executives, including the CEO and the board of directors. It requires a comprehensive
understanding of the external business environment and internal capabilities.
 Integration with Stakeholder Interests: Corporate planning considers the interests and
expectations of key stakeholders, including shareholders, customers, employees, and the
broader community.
 Examples: The development of a corporate strategic plan outlining the company's growth
objectives, market positioning, and major initiatives.
2. Functional Planning:
 Scope: Functional planning occurs at a lower level than corporate planning and focuses on
specific functional areas or departments within the organization, such as marketing, finance,
human resources, or operations.
 Time Horizon: Functional plans can cover various time frames, depending on the nature of
the functions involved. They are more specific and detailed than corporate plans.
 Key Components: Functional plans outline the objectives, strategies, and actions required to
support the overall corporate plan. For example, a marketing plan may detail specific
campaigns, target audiences, and promotional activities.
 Involvement of Middle Management: Middle-level managers are often responsible for
functional planning. They translate the broader corporate strategies into concrete plans for
their respective areas of responsibility.
 Specialized Expertise: Functional planning requires specialized knowledge and expertise
related to the specific functions or departments. For instance, a finance plan may focus on
budgeting, financial forecasting, and capital allocation.
 Alignment with Corporate Goals: Functional plans must align with the goals and strategies
outlined in the corporate plan. They contribute to the overall success of the organization by
ensuring that each functional area works cohesively.
 Examples: The development of a marketing plan to achieve sales targets, a financial plan to
manage budget allocations, or an HR plan for talent acquisition and development.

In summary, corporate planning sets the broad direction and vision for the entire organization, while
functional planning zooms in on specific departments or functions, detailing how each contributes to the
achievement of the overall corporate goals. Both levels of planning are crucial for organizational success,
ensuring alignment and coordination across the entire enterprise
9.Proactive and reactive planning : Managers anticipate the challenges and risks of the future
and prepare alternative plans and take suitable steps in order to adapt with unforeseen change
 Anticipation of Future Events: Proactive planning involves anticipating future events, trends,
and challenges before they occur. It is a forward-thinking approach that aims to identify
opportunities and threats in advance.
 Preventive Measures: The focus of proactive planning is on taking preventive measures to
capitalize on opportunities and mitigate potential risks. This approach is about shaping and
influencing the future rather than simply responding to it.
  Long-Term Perspective: Proactive planning often has a long-term perspective and is closely
associated with strategic planning. It involves setting goals, defining strategies, and aligning
resources to achieve the organization's vision.
 Innovation and Creativity: Proactive planning encourages innovation and creativity.
Organizations adopting this approach are more likely to invest in research and development,
explore new markets, and stay ahead of industry trends.
 Example: Developing a strategic plan that identifies emerging market trends, invests in new
technologies, and establishes a competitive advantage.
2. Reactive Planning: Managers plan to react to an external event
 Response to Immediate Needs: Reactive planning, on the other hand, involves responding to
events and challenges as they arise. It is a more adaptive approach that deals with the
immediate needs of the organization.
 Crisis Management: Reactive planning is often associated with crisis management.
Organizations employing this approach focus on containing and resolving problems rather
than preventing them.
 Short-Term Focus: Reactive planning tends to have a short-term focus, addressing the
current situation without necessarily considering the long-term implications. It is more about
survival and immediate response.
 Adaptation to Changes: Reactive planning is essential for adapting to unexpected changes in
the business environment. It involves making quick decisions and adjusting strategies on the
fly.
 Example: Implementing contingency plans to deal with unforeseen disruptions, such as a
sudden supply chain issue or a natural disaster.

In practice, organizations often use a combination of proactive and reactive planning to navigate the
complexities of the business environment. While proactive planning helps set a strategic direction and prepare
for the future, reactive planning is necessary to deal with unforeseen events and changes. Striking the right
balance between these two approaches is crucial for organizational resilience and success.

The Managerial Grid Model, also known as the Leadership Grid, is a management and
leadership model developed by Robert R. Blake and Jane S. Mouton in the early 1960s. The
model aims to assess leadership styles based on two fundamental dimensions: concern for
people (employee relationships) and concern for production (task accomplishment). These
dimensions are represented on a grid to categorize leadership styles. The Managerial Grid is
a popular tool for understanding leadership behaviours and their impact on organizational
effectiveness. The two axes of the grid represent the following:

1. Concern for People (Y-Axis):

 High Concern: Leaders with high concern for people focus on building
positive relationships, fostering teamwork, and meeting the needs of
individuals within the team.
 Low Concern: Leaders with low concern for people may be task-oriented and
emphasize getting the job done over building strong interpersonal
relationships.
2. Concern for Production (X-Axis):
 High Concern: Leaders with high concern for production are task-oriented
and emphasize achieving goals, meeting deadlines, and maximizing efficiency.
  Low Concern: Leaders with low concern for production may be more focused
on the well-being of their team members and less focused on achieving
specific tasks or goals.

The combination of these two dimensions results in five distinct leadership styles, each
represented in a different area of the grid:

1. Country Club Management (Low Concern for Production, High Concern for People):
 Leaders in this style are primarily concerned with creating a friendly and
comfortable work environment. However, they may not put enough
emphasis on achieving organizational goals.
2. Team Management (High Concern for Production, High Concern for People):
 Team managers seek to balance the needs of both people and production.
They create a positive work environment while also focusing on achieving
organizational objectives. This style is considered ideal.
3. Impoverished Management (Low Concern for Production, Low Concern for
People):
 Impoverished managers exhibit minimal concern for both people and
production. They may be indifferent and detached, leading to a lack of
motivation and poor performance.
4. Authority-Compliance (High Concern for Production, Low Concern for People):
 Leaders with this style emphasize achieving tasks and goals but may do so at
the expense of employee morale. They use authority to control and direct the
team.
5. Middle-of-the-Road Management (Moderate Concern for Production, Moderate
Concern for People):
 Middle-of-the-road managers aim to balance people and production needs at
a moderate level. While they avoid extremes, they may not excel in either
dimension.

The Managerial Grid is a helpful tool for individuals and organizations to assess leadership
styles and make deliberate choices about how they approach management. It emphasizes
the importance of finding a balance between concern for people and concern for production
to achieve optim