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SINGLE USE PLAN: A single use plan is developed for a one time event or project. Such a course of action is not likely to be repeated in the future. These plans include budgets, programmes and projects. 

STANDING PLAN: A standing plan is used for activities that occur regularly over a period of time. It is designed to ensure internal operations of an organisation run smoothly. Standing plans include policies, procedures,  methods and rules.

1. Objectives: Objectives are defined as ends for the achievement of which
an organization goes on working. They may be designed as the desired
future position that the management would like to reach. The first and
foremost step of the planning process is setting organizational objectives.
Examples increasing sales by 10%, Getting 20% return on Investment etc.
Objectives should be clear and achievable.

2. Strategy: Strategies refer to future decisions defining the organizational
directions and scope in long run. It is comprehensive plan which includes:
(i) Long term objectives, (ii) Adopting a particular course of action, (iii)
Allocating resources necessary to achieve the objectives.
3. Policy: Policies refers to the general guidelines which brings uniformity in
decision-making for achievement of organizational objectives. They
provide directions to the managers of an organization. They are flexible as
they may be changed as per requirement. Example, selling goods on cash
basis only, reserving some post for women in the organization.
4. Procedure: Procedures are those plans which determine the sequential
steps to carry out some work/activity. They indicate which work is to be
done in which sequence/way. They help in the performance of work.
Procedures are guides to action. Example: Process adopted in the
Selection of Employees.
5. Rule: Rules are specific statement that tell what is to be done and what
not to be done in a specified situation. They help in indicating which points
are to be kept in mind while performing task/work. Rules are rigid which
ensure discipline in the organization. Example: ‘No smoking in the office
premises’. Violation of rules may invite penalty.
6. Method: Methods are standardized ways or manner in which a particular
task has to be performed. There may be many ways/methods of completing
a task but that method/way must be selected by which work can be done
early at the minimum possible cost. Methods are flexible. Example, various
methods of training are adopted by an organization to train its employees
like apprenticeship training, vestibule training etc.

1. Planning focuses on achieving objectives:
Planning has no meaning unless it contributes to the achievement of
predetermined organizational goals.
2. Planning is a primary function of management:
Planning lays down the base for other functions of management. Planning
precedes other functions.
3. Planning is pervasive:
Planning is required at all levels of management as well as in all departments
of the organization. It is not an exclusive function of top management.
4. Planning is futuristic:
Planning essentially involves looking ahead and preparing for the future.
5. Planning involves decision making:
Planning essentially involves choice from among various alternatives and
activities. If there is only one possible course of action, there is no need for
planning because there is no choice.
6. Planning is a mental exercise:
Planning requires application of the mind involving requires foresight,
intelligent imagination and sound judgement.
7. Planning is continuous:
Plans are prepared for a specific period of time may be for a month, a
quarter, or a year. At the end of that period there is need for a new plan to
be drawn on the basis of new requirements and future conditions. Hence,
planning is a continuous process.

1. Planning leads to rigidity: Planning discourages individual’s
initiative & creativity. The managers do not make changes
according to changing business environment. They stop taking or
giving suggestions and new ideas. Thus detailed planning may
create a rigid framework in the organization.
2. Planning may not work in dynamic environment: Planning is
based on anticipation of future happenings and since future is
uncertain and dynamic, therefore, the future anticipations are not
always true.
3. Planning involves huge costs: When plans are drawn up, huge
cost is involved in their formulation.

4. Planning is time consuming: Sometimes plans to be drawn up
take so much of time that there is not much time left for their
implementation and it is not feasible in emergencies.
5. Planning does not guarantee success: The success of an
enterprise is possible only when plans are properly drawn and
implement. Sometimes managers depend on previously tried
successful plans, but it is not always true that a plan which has
worked before will work effectively again.
6. Planning reduces creativity: In planning, work is to be done as
per pre-determined plans. It is decided in advance what is to be
done, how it is to be done and who is going to do it. Moreover,
planning is done by top management which leads to reduction of
creativity of other levels of management

Importance of Planning

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1. Planning provides directions: By stating in advance how the work is to be done, planning provides direction for action. If there was no planning, employees would be working in different directions and the organization would not be able to achieve its goals efficiently.
2. Planning reduces the risk of uncertainty: Planning is an activity which enables a manager to look ahead, anticipate changes, consider the impact of changes and develop appropriate responses.
3. Planning reduces wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different departments and individuals whereby useless and redundant activities are mentioned.

4. Planning promotes innovative ideas: Planning is the first function of management. Managers get the opportunity to develop new ideas and new ideas can take the shape of concrete plans.
5. Planning facilities decision making: Under planning targets are laid down. The manager has to evaluate each alternative and select the most viable option.
6. Planning establishes standards for controlling: Planning provides the standards against which the actual performance can be measured and evaluated. Control is blind without planning. Thus planning provides the basis for control.

For the attainment of the desired objectives, organisations make plans. Planning is an essential activity for any organisation and sets the basis for its functioning. However, sometimes the things do not go as per the plan. Unforeseen changes in the business environment often dampen the plans of the organisation. Moreover, the process of planning has its own limitations that hinder the accomplishment of all the objectives of an organisation. Following are some of the limitations of planning which may result in the abandoning of the organisational objectives.

(i) Rigidness: Planning is rigid in nature. Once a plan regarding the objectives to be achieved and the course of action to be followed is formulated, the manager may not be able to change it. Such rigidity creates hurdles at times of unforeseen changes. At times of unexpected changes, the managers may require certain degree of flexibility so as to cope with the changes in an appropriate manner. Thus, rigidity in plans sometimes creates obstacles in the completion of the objectives.

(ii) Cannot Deal with Dynamic Environment: Business environment is dynamic and thereby, very uncertain. However, planning cannot foresee such changes and fails at times of changes and uncertainties. This may lead to failure in the accomplishment of objectives. An organisation must adapt its functioning to the changing environment.

(iii) Gigantic Costs: Formulation of plans involves huge costs in terms of time and money. As planning is based on future predictions, it requires a lot of thinking and analysing. It involves scientific calculations along with the figures and the facts, which are to be used in formulating the course of action. This involves high costs. Moreover, sometimes it might also happen that the benefits derived from planning fall short of the costs incurred.

(iv) False Security: Good planning does not mean a guarantee to success. Often the mangers tend to rely on pretested plans that have worked well in the past. However, it is not always true that if a plan had worked well in the past, it will also be successful in the future. Many unforeseen changes may crop up that may fail the plan. Sometimes managers think that planning can prevent the problems from occurring, however, they neglect the fact that planning just provides a base for predicting the future. It does not give straight away solutions to the problems.

(v) Time Consuming: Formulating plans is a very time consuming task, as it involves looking forward in the unforeseen situations. It involves a lot of research and evaluation. This increases the time consumed by the managers and the actual actions may get delayed.