Notes on Industrial Planning
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Notes on Principles and Practices of Management
Notes on Industrial Planning
What are Industrial Plans?
There are eight common types of plans available for managers. These types are:
Mission or Purpose:
The mission or purpose outlines the general purpose of the entire business in terms of its products and services to consumers.
Objectives or Goals:
Objectives or goals are more specific in terms of the end product. The final point down the production line precedes planning, organizing, staffing, leading and controlling. Although the objectives and goals of sub-organizations within a corporation aim for a common mission or purpose, the objectives and goals of sub-organizations maybe different from those of others.
Strategies:
A business strategy is a plan outlining the basic long-term objectives and goals of an organization, followed by a sequence of strategically planned business solutions to achieve those objectives and goals, taking into account all the available human and non-human resources.
The main objective of properly planned strategies is to ensure that business subunits communicate each other according to their policies, and this creates the proper foundation and framework to determine solutions to business problems.
Policies:
Policies provide a route for making decisions within an organization while resorting to the company's original objectives or goals. Policies identify previously solved business problems, thus, enabling managers to delegate their authority whilst maintaining full control over their subordinates. Policies can be viewed as guides to decision-making that allow some discretion within limits.
Procedures:
Procedures outline chronological steps that provide a method of handling future actions, thus, detailing the exact manner in which problems must be solved.
Rules:
Rules list specific required processes and warrant adherence to these processes. Rules may serves as general guides, and may be a simplest type of plan needed by managers while deciding on an action. Furthermore, rules guide a line of action without a time sequence, and are not part of a procedure.
Programs:
Programs help us execute a plan of action by providing us with goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed and other elements. Certain programs may harness other supporting programs.
Budgets:
Budgeting is a process that makes people plan for the future in terms of numerals. Budgets vary considerably in their accuracy, detail and purpose. Budgets are expressed in terms of finance, labor-hours, product quantity, or machine-hours. Flexible/variable budgets vary according to the output level from an organization. Program budgets on the other hand, which help identify the goals and estimates of each program. Zero-base budgets are a combination of flexible/variable budgets and program budgets.
Additional Readings:
1. Functions of a Business Manager
2. Henry Fayol and Modern Management Theory
3. Modern Management Thoughts and McKinsey's 7-S framework
4. Industrial Planning
5. Management and Setting of Objectives
6. Principals of Organization
7. Matrix Organizations
8. Functions of the Human Resources and Accounting within an Organization
9. Differentiation between Motivation and Satisfaction
10. Barriers to Good Communication
11. Requirements of Effective Controls
12. Formal and Informal Organizations
13. Bonded Rationality
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