Planning and Decision Making Process

Planning includes defining the organization’s objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. In planning process is important to know what is necessary to do and in which way it can be done. It helps to minimize waste and redundancy, provides direction, reduces the impact of changes and set the standards.
Planning could be formal or informal. Formal planning at nowadays is very popular and many managers choose exactly this way of planning because it is quite old and assists easier to reach the goals.
All pans can be dividing into the 4 categories where each category subdivides into the two considering their chances and situation is used in:
1.Breadth:
Strategic;
Tactical.
2.Time frame:
Long term;
Short term.
3.Specificity;
Directional;
Specific.
4.Frequency to use:
Single use;
Standing.
Strategic plans are plans that are organization wide, establish overall objectives, and position an organization in terms of its environment. These plans are tend to cover extended time period which usually aspires to 5 years period. Strategic plans includes formulation of objectives.

Tactical plans
Also is known as operational plans and these are plans which specify the details of how an organization’s overall objectives are to be achieved. These plans in comparison with strategic plans could be monthly, weekly or day-to-day.

Time frame plans
Usually these plans use a financial analysts where are important to describe investment returns at short and long term period. …