Thursday, December 11, 2008

TYPES OF PLANS : STANDING PLANS & SINGLE USE PLANS

STANDING PLANS are used over and over again because they focus on organizational situations that occur repeatedly.

SINGLE USER PLANS are used only once, or at most, couple of times,because they focus on unique or rare situations within the organization.

STANDING PLANS:

Policies, Procedures and Rules:

A POLICY is a standing plan that furnishes broad guidelines for taking action consistent with reaching organizational objectives.

A PROCEDURE is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task.

Procedures outline more specific actions than policies do.

Organizations usually have many different sets of procedures covering the various tasks to be accomplished.

Managers must be careful to apply the appropriate organizational procedures for the situations they face and apply them properly.

A RULE is a standing plan that designates specific required action. A rule indicates what an organization member should or should not do and allows no room for interpretation.


SINGLE USE PLANS:

Programs & Budgets:

A PROGRAM is a single use plan to carry out a special project within an organization. The Project itself is not intended to remain in existence over the entire life of the organization. Rather, it exists to achieve some purpose, that if accomplished, will contribute to  the organization's long term success.

A BUDGET is a single user financial plan that covers a specified length of time. It details how funds will be spent on labour, raw materials, capital goods, information systems, marketing and so on, as well as how the funds will be obtained.

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