Introduction
Mission-based organizations operate under the guidance of goals. Organizational goals usually provide the direction for every activity done within the company. It is vital to note that the function of setting and achieving goals is quite critical and only manageable by an extremely effective leader. The organizational plan is the framework that determines a successful achievement of the set goals. Therefore, an organizational plan is important in any given mission-based business entity.
Importance of plans
There is a strong relation between the plan developed and the achievement of set organizational goals. The process of developing a plan geared towards achieving specified goals usually starts with carrying out a review of the existing business operations in the organization and identifying what has to be corrected or improved, operationally, in the following financial year. After this step is done, the development of a plan then moves to the phase of envisioning the outcomes, which the entity wants to receive. This process also involves deciding on the steps needed to be implemented in order to achieve the envisioned results.
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Planning usually enables organizations to stick to the right path of achieving the set business goals. Development of plans is also vital because it enables an organization to manage resources well by using them efficiently. When the operations of a company are premised on a plan, it is quite easy to keep the consumption of resources within the set budget hence avoid wastage and incurring extra operational costs. Plans normally set out the time-frames for every operational activity hence lateness is avoided when operations stick to them as developed. The importance of developing plans in organizations is also based on the reality that firms usually face limited resources, which have to also be used with respect to a number of constraints. The plans developed enable a company to achieve its set goals even in the face of these limitations and constraints.
Moreover, developing plans enable the organization to manage risks and uncertainties effectively. Plans usually anticipate future risks and uncertainties, establishing effective solutions. This aspect of plans helps companies in terms of preparedness in the event of emergencies and risks occurring.
Finally, developing plan gives organizations competitive advantages over their rivals in the industry. A developed plan sets strategies that can be employed to win customers in the market. Moreover, a plan usually spells some of the actions to be taken in the bid to become the market leader.
Types of plans
There are various types of plans. The two types of organizational plans include strategic and tactical ones. It is vital to note that the strategic plans are normally designed with the consideration of the entire organization. This type of plans usually starts with the statement of the organization’s mission. Strategic plans are targeted towards helping the company achieve future long-term goals. It is these strategic plans that then inform the lower-level short-term planning. Importantly, strategic plans in an organization are developed and implemented by the top-level managers and directors of the firm (Gluck, Kaufman & Walleck, 1980). The aim, in this case, is to provide the overall direction of the organization.
The second type of plans is the tactical one. Tactical plans are developed to support the strategic ones. The tactical plans are quite specific and spell out the categorical actions to be taken in a given area. Therefore, tactical plans consider a given department within the organization (Robinson, Logan & Salem, 1986). They are developed and implemented by the departmental managers. These plans assign the lower-level managers their action part in the whole strategies set.
When each planning type is most appropriate to use
These two types of organizational plans have their specific contexts in which they are applicable. The strategic plans are used when setting the overall business framework for the whole entity. This could at the start-up time of the organization. Starting companies must have the business plan for the entire entity. This plan is normally a long-term one and sets out the future direction of the whole organization. Strategic plans are also best applicable when introducing a change that affects the whole company. The top-level managers normally develop a plan for the implementation of the particular change within the whole organization and its intended results in the long-term.
On the other hand, the tactical plans are best applicable at the departmental level. Each department normally has its specific goals and actions to be implemented in order to achieve such goals. Therefore, the tactical plans are best applicable when addressing the short-term organizational goals. Some of the short-term departmental goals may be the monthly output level or quarterly sales revenues amount. These tactical plans must be spell out the specific actions for the department and mention the categorical results to be achieved.
Conclusion
It has been established that developing plans is an important function, which a skilled manager cannot gainsay. A manager who is inclined towards achieving the set goals of a company must embrace the development of plans because they provide the clear course of action needed to attain them. Notably, the importance of organizational plans in achieving set business goals has been explained. Developed plans enable a company to use its time and capital resources efficiently and effectively, despite the limitations and constraints present. Furthermore, organizational plans give business entities competitive advantages over rivals in the market. These plans provide the path towards the direction a company intends to go. There are two types of plans mentioned in this paper, which include tactical and strategic ones.
References
Gluck, F., Kaufman, S., &Walleck, S. (1980). Strategic Management for the competitive advantage. McKinsey Quarterly , 2-16.
Robinson, R., Logan, J., & Salem, M. (1986). Strategic versus Operational planning in large retail firms. American Journal of small business , 10 (3), 3-11.
