Plans Are Documents That Outline How Goals Are Going To Be Met And

The correct option of this multiple choice question (mcq) is (D), as plans are prepared to achieve set goals by allocating resources, scheduling the work tasks and other necessary course of actions. They provide a roadmap and establish ways to get the desired outcomes. A manager needs plans to achieve organizational objectives and goals.

When a manager plans, he needs to define and develop both goals (ends) and plans (means) called components of Planning, which are explained in the below section of this question answer.

So, if we say that "planning is concerned with how objectives are to be accomplished, not what is to be accomplished", then this statement is false.

What Are Goals?

Goals are set targets which a manager wants to accomplish. The manager needs to meet these desired targets or outcomes to perform well in the organization. These goals show his performance by comparing actual results with set targets. Goals are foundation of planning because they set targets which the organization needs to achieve through plans. An organization has multiple goals which it wants to accomplish. For example, to get higher return on investment, to expand globally, etc., are goals for an organization.

Kinds / Types of Goals

(i) Financial Goals

When the organization wants to improve the financial performance. For example, a manager plans to double the net income in next 2 years, especially, when the company has competitive advantage over its competitors in the market.

(ii) Strategic Goals

These are concerned with all areas of an organization’s performance except financial performance. For example, the organization wants to hire new fresh and talented employees in the upcoming year to be served for the organization to improve work quality work and working performance.

(iii) Stated Goals

These are shown in annual reports, public relations announcements, official statements of organization when the managers or non-managerial employees say about them. For example, if a university say that it wants to implement merit system and learning process in its education system.

(iv) Real Goals

These are the goals which an organization actually pursues or follows. For example, if the stated goal of the company is to increase the salary upto 50% in a year but the company is actually announcing to reduce the salary by 10% in the upcoming month is its real goal which is conflicting with the stated goal. So, this situation should be managed by manager in order to resolve the difference created between SG and RG to stay focus in achieving its goal i.e., to increase the salary upto 50% of employees in a year.

Types of Plans

Plans can be divided into four types according to breadth, time frame, specificity and frequency of use.

1. According To Breadth

(i) Strategic Plans

These plans apply to overall organization and these builds overall goals of organization as these are widely applicable from top to the bottom level of management. For example, an organization wants to become market leader in the next five years is a SP which affects the corporate mission, vision and policies of the organization broadly.

(ii) Operational Plans

These are applied at particular area of an organization such as at financial department, human resource department, customer care and support department, etc., These are applied at lower-level management. For example, if an operational manager wants to schedule 100 workers in morning shift in order to increase the working performance and make it possible to complete the project in time.

2. According To Time Frame

(i) Long-Term-Plans

These are made for more than one year. Time is longer to achieve the targets. For example, the company needs approximately five years to complete the project.

(ii) Short-Term Plans

These are made for one year or less than one year. For example, the manager wants to increase sales in the south region upto 50% in a year.

3. According To Specificity

(i) Specific Plans

These are specific in nature and these should be implemented without any interpretations. These follow strict procedures and rules. These plans do not include flexibility. For example, the manager follows the specific procedures to improve working performance within a year and ultimately achieves organizational goals.

(ii) Directional Plans

These are loosely guided and flexible in nature in which the manager does not need to follow strict procedures and rules. He can schedule work tasks according to his own and workers’ convenience and at the time when he can deliver his best to the specific project.

For example, a manager may schedule work tasks from 9AM to 5PM instead of 8:00AM to 6:00PM for him and his team members in order to work efficiently and effectively.

4. According To Frequency of Use

(i) Single-Use Plan

This is used in a particular situation. For example, to increase sales in the south region, the company’s plan is to focus one guided plan to be carried out for this particular purpose.

(ii) Standing Plans

These provide guidance for repeated work tasks. For example, the computerized and accounting software, which follow accounting concepts and principles automatically, are used to perform accounting works which are performed repeatedly throughout the accounting period.