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Planning is perhaps one of the most important tools in the hands of management to decide upon future course of action. It will be useful at this stage to distinguish in broad terms between three different types of planning:
• Strategic Planning;
• Budgetary Planning;
• Operational Planning.
• Strategic Planning;
• Budgetary Planning;
• Operational Planning.
These three forms of planning are interrelated. The main distinction between them relates to their time span which may be short term, medium term or long-term.
Strategic Planning: Strategic planning is concerned with preparing long-term action plans to attain the organization’s objectives by considering the changes at horizon.
Budgetary Planning: Budgetary planning is mainly concerned with preparing the short to medium term plan of the organisation. It will be carried out within the framework of the strategic plan as already set. An organization’s annual budget is considered as an intermediary step towards achieving the strategic plan.
Operational Planning: It concerns with the short-term or day-to-day planning process. It plans the utilisation of resources and will be carried out within the framework of the budget. Each step in the operational planning process is an interim step towards achieving the budget.
