[Solution] Step 1: Plans
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Author: Emily Carter
Making Plans
To achieve goals, managers make plans. Just as with goals, there are different types of plans. It is important to plan for what is expected, and it is also important to plan as much as possible for the unexpected.
Types of Plans
As with goals, different kinds of plans are made at different levels of the organization:
- Strategic plans lay out the allocation of resources, priorities, and action steps needed to achieve strategic goals. These plans are made by top managers. Planning discussions center on issues such as scope, resource deployment, competitive advantage, and synergy.
- Tactical plans support tactical goals and are made by upper and middle management. Whereas strategic plans are primarily about deciding what the organization should do, tactical plans are more about getting things done. Tactical plans tend to have shorter time frames than strategic plans do.
- Operational plans are made to achieve operational goals, and are developed by middle- and lower-level managers. These plans are relatively short-term and small in scope.
Plans are also described in terms of their time frame:
- A plan is generally considered a long-range plan if it covers 5 to 10 years; this time frame aligns with that of strategic plans.
- Intermediate plans typically cover 1 to 5 years; this time frame aligns with that of tactical plans.
- Short-range plans usually cover a year or less. A short-range plan may be an action plan, which puts an existing plan into motion. It may also be a reaction plan that is developed to help the organization respond to an unforeseen event while still trying to achieve its mission.
Who Makes Plans?
Different levels of management are responsible for creating and implementing different types of plans in an organization.
Select the word that best completes each of the following sentences.
When top managers develop strategic plans, they primarily discuss resource allocation, competitive advantage, and synergies between .
View Explanation
Strategic plans are developed by top managers to achieve strategic goals. Planning discussions center on big-picture issues such as scope, resource deployment, competitive advantage, and synergy.
A short-range plan that takes steps to move another plan forward is an .
View Explanation
An action plan is a short-term plan designed to make progress against another plan, such as an operational or tactical plan.
A reaction plan is a short-term plan designed to respond to some event or situation the original planning did not take into account.
Select the correct response to the following question about who carries out various planning roles in organizations.
Certain individuals in an organization have the authority and responsibility to perform tasks such as budgeting and carrying out plans. What term is used to refer to these people?
- Top managers
- Planning staff
- Middle managers
- Line managers
View Explanation
The people in the organization who carry out the plans developed by top management are the line managers. In the planning process, they recommend alternatives and develop budgets. It is important for top and middle managers to solicit line managers' input as plans are developed, since line managers have valuable insights and should feel ownership of the plans they'll be expected to execute.
