Planning is a crucial aspect of organizational management, and it occurs at various levels within an organization. Different levels of planning help ensure that the organization's overall objectives are met, from strategic long-term goals to specific short-term tasks.
Three levels of planning include:
Strategic Planning:
Focus: Long-term planning that spans several years.
Purpose: Sets the overall direction and goals for the organization. Involves decision-making regarding the allocation of resources to achieve a competitive advantage.
Scope: Typically involves top-level executives and board members.
Activities: Environmental analysis, goal setting, and formulation of high-level strategies.
Tactical Planning:
Focus: Medium-term planning that covers one to three years.
Purpose: Translates the strategic plan into specific actions and resource allocations for various departments or units. Involves planning to implement the strategic objectives.
Scope: Involves middle managers and department heads.
Activities: Development of departmental plans, resource allocation, and coordination of activities.
Operational Planning:
Focus: Short-term planning covering days, weeks, or months.
Purpose: Detailed planning for day-to-day operations. It involves specific tasks, assignments, and resource utilization to meet the tactical and strategic objectives.
Scope: Involves front-line managers, supervisors, and employees.
Activities: Daily work plans, task assignments, and resource scheduling.