Planning: Types, Tools, and Techniques

Vocabulary flashcards covering the key planning concepts, types, tools, and techniques from the notes.

Planning

The blueprint or map to reach organizational goals; defines what is to be done and when it is to be done.

Corporate Planning

Planning developed by top management; usually long-term and covers the entire organization.

Divisional Planning

Planning at the division level to determine the scope of actions needed to satisfy consumer needs; typically long-range.

Functional/Unit Planning

The lowest level of planning focusing on individual departments; develops feasible action plans to implement the division plan; usually short-range.

Strategic Planning

Planning that covers the entire organization’s activities and is typically long-term; often synonymous with corporate planning.

Tactical Planning

Divisional/Business planning; determines divisional actions to satisfy consumer needs, sets sub-goals, policies, and budgets.

Operational Planning

Lowest level of planning, also called Unit Planning; focuses on day-to-day activities and short-range actions.

Standing Plans

Plans used for repetitive activities over time, including policies, procedures, and rules.

Single-use Plans

Plans for ill-structured or non-repetitive problems tailored to a specific situation and not reused after goal achievement.

Policies

Broad guidelines that limit behavior and guide decision-making toward organizational goals.

Procedures

Narrow, step-by-step actions within departments (e.g., hiring procedures, payment procedures).

Rules

Specific directives for behavior, such as deadlines or dress codes.

Scenarios

Written descriptions of possible future events used to assess organizational effectiveness and prepare for what-if conditions.

Nominal Group Technique

A planning method involving experts from diverse backgrounds to generate ideas and identify desirable goals and strategies.

Simulation Planning Models

Computer simulations used to develop long-, medium-, and short-range plans and test hypotheses.

Formal Planning

Planning based on systematic criteria and rigorous investigation, with formal documentation of objectives.

Informal Planning

Planning guided by intuition and informal decision-making, without rigorous investigation.

Long-range Planning

Planning horizon up to about 15 years; addresses broad technological and competitive decisions.

Medium-range Planning

Planning horizon of roughly 2–5 years; more detailed and focused on specific basic functions.

Short-range Planning

Planning horizon of about 1 year; more specific actions like plant location, methods, inventory, and training.

Focus

Concentration of a plan in a specific area, clarifying where more attention is needed.

Repetitiveness

Degree of sameness in how often and how plans are reused within the organization.

Time Frame (Planning Horizon)

Classification of planning horizons into long-range, medium-range, and short-range.

Budget

A financial plan allocating resources to achieve divisional and organizational goals.